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Pure Energy Corporation Files Petition
with the Department of Energy
Regarding its Alternative Fuel

For Immediate Release

July 7, 1997. Pure Energy Corporation has filed a petition with the Department of Energy seeking a rulemaking to designate its proprietary non-petroleum motor fuel as an "Alternative Fuel" under The Energy Policy Act of 1992 ("EPACT"). Pure fuel is designed to be used in so called flexible fuel vehicles ("FFVs") which can use up to 85% ethanol. Ford and Chrysler recently announced plans to mass produce hundreds of thousands of FFVs for the commercial market with a particular eye on federal and state fleets which are required to purchase certain minimum quantities of alternative fuel vehicles under EPACT.

Pure Energy's fuel is a unique blend of ethanol, natural gas liquids and a co-solvent. Both ethanol and the co-solvent are expected to be derived from renewable resources, i.e., cellulosic biomass such as waste paper, agricultural waste and wood waste. The fuel will be non-petroleum and as much as seventy percent renewable.

Pure Energy's fuel creates environmental benefits relative to gasoline, in that it produces less emissions, including greenhouse gases, when run in automobiles. Its renewable feedstock and less intensive production process also are expected to be advantages. Merrick G. Andlinger, Pure Energy's President and CEO stated, "We believe prompt commercialization and development of our fuel is in the national interest. The transportation sector has an enormous impact on our economy, our nation's energy security and our environment. PEC is developing and implementing strategies that address both the domestic and global market for supplying an environmentally friendly motor fuel that is competitively priced and utilizes existing distribution infrastructure world wide."

Pure Energy, based in New York City, has the exclusive world-wide license from Princeton University to commercialize the cleaner burning alternative fuel, developed at Princeton. In May, the US Patent Office allowed claims covering the fuel. The Company is involved in the formulation and production of alternative and bio-based fuels.

For more information contact:
Merrick G. Andlinger
President and CEO
Pure Energy Corporation
(212) 938-6923

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