Phoenix Power Group Commences Project To Generate Clean Electricity From Waste Oil

MEMPHIS, TENN.--(BUSINESS WIRE)--

Phoenix Power Group LLC announced today that it has commenced development ofthe Phoenix 5 Series Power Generator, a revolutionary renewable power system capable of generating electricity from waste (used) oil. The company anticipates these prototype systems to be available for installation at selected partners' beta sites in 2010.

The P5S is expected to be the first power generator capable of utilizing waste oil products, such as used motor oil, to produce electricity for on-site operational requirements or as a power grid feed. Utilizing the award-wining, clean burning Cyclone Power Technologies external combustion engine as its power source, preliminary designs rate the P5S system producing upwards of 60kW of electricity per hour on approximately 4½ gallons of waste oil.

The benefits of the P5S for industrial facilities, municipal maintenance departments, automotive and truck fleet operators, railroad yards, lube centers and service stations, and many other similar operations is clear. First, the fuel they can use to power their facilities or feed back to the grid is essentially free, if not a profit center. The waste oil has already served its original intended purpose for which the associated costs have previously been expensed. Furthermore, businesses that are required to pay for the disposal of their waste oil by-products could now eliminate that cost altogether along with the associated long term liability.

"From our current and future customers, we see an enormous, open market for the generation of electricity using waste motor oil," stated PPG's President, Thomas V. Thillen. "This is a product that will save businesses considerable money in electrical costs or create revenue by selling electricity back to the power grid."

Secondly, the P5S will present a needed solution to the environmental problem of waste oil disposal. The Environmental Protection Agency (EPA) estimates that the U.S. produces 1.4 billion gallons of waste oil annually. Unfortunately, about 500 million gallons are not collected and disposed of properly. Of the amount that is collected only 10% is re-refined. Instead of presenting a contaminate to our water tables, rivers and oceans, the P5S will burn that waste oil thoroughly and cleanly.

At the heart of the P5S system is the Cyclone Engine, a quiet, clean burning external combustion engine developed by Cyclone Power Technologies of Pompano Beach, FL. The patented Cyclone Engine is a 21^st century, high efficiency steam engine. It combusts fuel in a cyclonic external chamber at temperatures and pressures below where harmful emissions such as NOX are created, and at noise levels no greater than a washing machine. Equally interesting, the Cyclone Engine, which can effectively run on used motor oil, actually uses no motor oil in the engine – it is completely water lubricated in an enclosed system that requires no fluid changing or topping off. The Cyclone Engine was recognized by Popular Science Magazine as the Invention of the Year in 2008, and was presented with the Society of Automotive Engineers' AEI Tech Award in 2006 and 2008.

In additional to securing an exclusive license from Cyclone Power Technologies for use of their engines in North America and Australia for waste oil power applications, PPG has an exclusive license with Mr. Terry Bassett, who holds two U.S. patents, with international patents pending, for the total system package of generating electric power from waste oil using an external combustion engine. The company believes that these intellectual property rights will place it in a leadership position in this exciting new industry.

PPG, a privately held company incorporated in Tennessee, is an affiliate of Atlantic Systems Group of Harrisonburg, VA, which is in the business of designing and building automotive oil change and service facilities throughout the United States, along with the manufacturing of steel tanks for the lube industry. PPG's equity partners include Hansom James Capital, whose principals founded Tennessee-based AIMS Logistics Inc. in 1994, which, when sold to U.S. Bancorp in 2007, employed over 300 people internationally and processed approximately $5 billion annually in freight payables for clients that included Honeywell International, General Electric, and Nortel Networks.

"We have been part of successful start-ups before, however, I am speaking for the entire group when I say this one is special," said David Nelson, co-founder of Hansom James Capital, which is providing financing and marketing expertise for the company. "We have a great chance here to create something that will leave an enormously positive environmental impact on our world."