GOVERNOR LAUNCHES FIRST TEST OF BREAKTHROUGH OXYDIESEL FUEL DEVELOPED BY PURE ENERGY CORPORATION

DECATUR, IL. November 23-Governor Jim Edgar of Illinois announced today the first in a series of demonstration projects to test the use of OxyDiesel, a blend of ethanol and diesel fuel developed by Pure Energy Corporation, in a fleet of trucks at Archer Daniels Midland (ADM) in Decatur.

"Throughout my administration I have strongly supported the use of clean-burning, renewable ethanol fuel, made from Illinois corn," the Governor said. "Illinois is the leading producer of ethanol in the United States, with an annual production of more than 600 million gallons. The successful blending of ethanol and diesel fuel will reduce harmful emissions from trucks and buses, and stimulate the agricultural economy and the ethanol industry in Illinois and across the nation."

The OxyDiesel fuel will be tested in unmodified diesel engines. In the initial demonstration project, each truck will be driven over 100,000 miles on the new fuel, then thoroughly examined for excessive wear. A 400-500 hour durability test will also be performed at the University of Illinois Urbana Champaign using a new diesel engine and OxyDiesel fuel. Although research is still in progress, OxyDiesel could have other significant benefits such as reduced sulfur content, a lower gel point than normal diesel fuel, and the ability to absorb excess water in the fuel.

"OxyDiesel is a proprietary formulation of diesel, ethanol and solubilizing agents engineered to reduce particulate matter and Nox emissions from diesel engines," said Irshad Ahmed, Senior Vice President and Chief Science Officer of Pure Energy. The proprietary formulation, developed by Pure Energy Corporation of New York, is designed to keep the two fuels from separating under adverse conditions.

"We can combine the benefits of each fuel into a new, cost-effective, low emission diesel fuel that can be used in both new and existing diesel engines," Irshad added. Initial cost estimates indicate the OxyDiesel will be only a few cents more per gallon than conventional diesel fuel.

"The additive developed by Pure Energy Corporation is a significant breakthrough in the transportation industry's effort to reduce vehicle emissions," said Merrick Andlinger, CEO and President of Pure Energy Corporation. "The additive allows us to create a new cost-effective, low emission diesel fuel that passes all stability tests and will benefit the environment, the state of Illinois and the entire transportation industry." The unique fuel blend is the subject of a patent application.

"ADM is pleased to host the first fleet of trucks in the country to demonstrate the use of OxyDiesel fuel," said Martin L. Andreas, Senior Vice President and Assistant to the CEO of Archer Daniels Midland. "We have committed three brand new Mack trucks to the project; two operating on E-15 OxyDiesel, and one as a control."

Doug Wilson, President of the Illinois Corn Growers Association, has estimated that if sales of the OxyDiesel fuel grow to the same 10% nationwide market share as ethanol blended gasoline, the annual demand for ethanol would increase by more than 750 million gallons, using an additional 300 million bushels of corn each year.

The next OxyDiesel test and demonstration project will be with the Chicago Transit Authority (CTA) in a fleet of existing urban transit buses. "CTA is a strong supporter of a cleaner environment. We are looking forward to being the next test site for this new, clean diesel fuel that will benefit the people we serve in Chicago," said Frank Kruesi, President of the Chicago Transit Authority.

The State of Illinois, through the Illinois Department of Commerce and Community Affairs (DCCA) coordinated the efforts to develop and begin testing of OxyDiesel, in partnership with Pure Energy Corporation, the Illinois Corn Growers Association, Archer Daniels Midland (ADM), Williams Energy Services, GROWMARK, Inc., the U.S. Department of Energy, the Council of Great Lakes Governors, the Chicago Transit Authority (CTA), and Mack Trucks, Inc.