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Contact: Kathryn Courbe, Weber McGinn


Testing program will move the fuel developed by Pure Energy Corporation closer to commercialization.

CHICAGO, Ill., July 23, 1999 - Pure Energy Corporation joined the Chicago Transit Authority and Illinois Governor George Ryan today to dedicate the first fleet of urban transit buses in the country powered by Oxygenated Diesel. The new ethanol-diesel fuel was developed by Pure Energy.

"Pure Energy Corporation is honored to join the Chicago Transit Authority and the state of Illinois to demonstrate Oxygenated Diesel," said Rick Andlinger, President and CEO of Pure Energy. "This fuel offers urban transit fleets across the country and others that use diesel-powered vehicles, a new blend that can be used in new and existing diesel engines in a cost effective manner. Pure Energy has a patent pending covering Oxygenated Diesel and after further testing and demonstration plans to commercialize the fuel in 2000 by working with industry partners in the U.S., Europe, Latin America and elsewhere.

Oxygenated Diesel is the first ethanol-diesel fuel of its kind.

"Successful performance testing has shown that Oxygenated Diesel has been run in unmodified vehicles and can perform in all seasons including the dead of winter," said Irshad Ahmed, Senior Vice President and Chief Science Officer for Pure Energy. "It also has been designed to create environmental benefits such as lower emissions and green house gases and is biodegradable." In commercial production, the fuel should cost only a few cents per gallon more than base diesel.

Oxygenated diesel, which blends 15 percent ethanol with diesel and a special additive, has the backing of Illinois Governor George Ryan.

"This Administration supports the use of clean, renewable ethanol fuel, made from Illinois corn. This new ethanol and diesel fuel blend will help clean up the environment by reducing emissions from trucks and buses, and will stimulate the agriculture economy and ethanol industry in Illinois and in this country," said Governor Ryan. Illinois is the leading producer of ethanol in the United States, with an annual production of more than 600 million gallons.

The Chicago Transit Authority, the country's second largest transportation system, will test oxygenated diesel in a fleet of 15 urban transit buses. "The CTA is a strong supporter of a cleaner environment and anything that benefits the people we serve in Chicago and the state of Illinois," said Frank Kruesi, President of the Chicago Transit Authority. "We have committed 30 buses to test the new ethanol-diesel fuel; 15 operating on Oxygenated Diesel and 15 as control vehicles, because we believe Oxygenated Diesel could significantly reduce exhaust emissions on the streets of our city."

Participants in the CTA demonstration include Pure Energy Corporation, the Illinois Department of Commerce and Community Affairs (DCCA), the Illinois Corn Growers Association and GROWMARK. Last fall, Pure Energy launched performance testing of Oxygenated Diesel fuel with Archer Daniels Midland's truck fleet (ADM) in Decatur, Ill. Participants in that demonstration and other Oxygenated Diesel activities in Illinois have included several engine manufactures and ADM. Initial test results indicate that the fuel is performing well in all climatic environments, in comparison to standard #2 diesel.

Pure Energy Corporation, with offices in New York and California, is a private company that develops and commercializes technology for new fuels, fuel additives and chemicals by working with established industry partners. The Company has developed a substantial base of intellectual property and patents. Some of these fuels are being used in demonstration programs across the country. For more information, contact Pure Energy Corporation at One World Trade Center, Suite 5301, New York, NY 10048, or visit their Web site at www.pure-energy.com

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