$4.2 Million Payment Received by Penn Octane in Lawsuit Against International Bank of Commerce-Brownsville.

Business Editors

PALM DESERT, Calif.--(BUSINESS WIRE)--March 7, 2000

Award Represents Dollar Value of 23 Cents Per Share Cents per share

The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. to Shareholders

and Book Value After Contingent Legal and Other Fees

Penn Octane Corporation (Nasdaq Small Cap market: POCC POCC Payload Operations Control Center
POCC Project Operations Control Center
POCC Passenger-Operated Climate Control
POCC Program Operations Control Center
POCC Planning Organization Command Control ) today announced that they have received a payment of $4,241,953.90 ending their lengthy six year legal battle against the International Bank of Commerce-Brownsville, (the Bank). After payment of the contingent legal and other fees incurred in connection with this judgment, the award represents a dollar value of .23 per share Penn Octane shareholders and overall book value.

The payment ends the legal process first initiated by Penn Octane against the Bank in 1994 as a result of the Bank's unwarranted breach of its agreement to facilitate credit to the Company. In 1996, a judgment was rendered in the Company's favor in the amount of $3,246,754 in the District Court in Cameron County, Texas Cameron County is the southernmost county located in the U.S. state of Texas. In 2000, its population was 335,227. Its county seat is Brownsville⁶. Cameron is named for Captain Ewen Cameron [1], a soldier during the Texas Revolution and in the ill-fated Mier . Subsequent appeals by the Bank to the Supreme Court of the United States Supreme Court of the United States

Final court of appeal in the U.S. judicial system and final interpreter of the Constitution of the United States. The Supreme Court was created by the Constitutional Convention of 1787 as the head of a federal court system, though it was were unsuccessful.

Jerry Richter, Penn Octane's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "With this settlement behind us, coupled with the completion of our Liquid Petroleum Gas (LPG) pipeline, the first pipeline owned by a US based company ever to cross the border between the US and Mexico, we are now poised to enhance our leading position as a provider of LPG to Northern Mexico, by using a portion of the proceeds to acquire the balance of the ownership in our pipelines and terminals from CPSC CPSC Consumer Product Safety Commission (US)
CPSC Computer Science (course)
CPSC Canadian Plastics Sector Council (Ottawa, ON, Canada)
CPSC Chemical Processing Safety Committee International, Inc.".

Penn Octane is a leading supplier of Liquefied Petroleum Gas liquefied petroleum gas or LPG, mixture of gases, chiefly propane and butane, produced commercially from petroleum and stored under pressure to keep it in a liquid state. to Mexico. Penn Octane leases a 132-mile, six-inch pipeline from a pipeline in Kleberg County, Texas Kleberg County is a county located in the U.S. state of Texas. In 2000, its population was 31,549. The county seat is Kingsville⁶ and it is part of the Kingsville Micropolitan Statistical Area. The county is named for Robert J. Kleberg, an early settler. to its terminal in Brownsville, Texas, which acts as a trans-shipment point for delivery to Mexico. Penn Octane has recently completed two pipelines to transport LPG as well as other hydro carbons or petroleum products from Texas into Mexico. Its affiliate's terminal in Matamoras, Mexico is completed and will begin operations in early March 2000. The Company's network is further enhanced due to the 160 miles of pipeline it has rights to use to transport LPG to and from its storage facility in Markham, TX.

For more information on Penn Octane Corporation, visit the Company's website at www.pennoctane.com.

Certain of these statements in this news release are forward-looking statements. While these statements reflect the Company's beliefs, they are subject to uncertainties and risks that could cause actual results to differ materially.

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Publication:	Business Wire
Date:	Mar 7, 2000
Words:	411
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