AquaFuel-Dominicana Introduces Water & Carbon Derived Clean-Burning Fuel to the Dominican Republic; Initial Purchase Commitments Exceed $1.44 Billion Over 20 Years.

SANTO DOMINGO, Dominican Republic--(BUSINESS WIRE)-- Jan. 12, 1999--AquaFuel-Dominicana (AFD) has announced its formation as a joint venture between Compania de Luz y Fuerza de las Terrenas, a consortium of entities organized to privatize the delivery of electric power in the Dominican Republic, and Toups Technology Licensing, Inc. (OTC BB:TOUP) ("TTL"), a U.S.-based technology firm.

AquaFuel-Dominicana's charter is to construct and operate AquaFuel(tm) production plants and AquaFuel electric power generation facilities in the Dominican Republic. AquaFuel may also be sold for other commercial applications, including as a fuel for the operation of motor vehicles or as a substitute for acetylene.

According to independent analysis, TTL's AquaFuel is a reliable alternative to fossil fuels, and produces no harmful emissions. It is readily produced from a patented process involving the electric discharge of carbon arcs in water. AquaFuel is the only known fuel that returns 7-13% oxygen to the air upon combustion.

Anticipating the installation of a number of AquaFuel power plants, the Luz y Fuerza consortium has already arranged for the purchase of a minimum of 1.653 Gigawatt-hours of AquaFuel electric power over a twenty year period - or about 10% of the country's present power requirements. This initial commitment alone could generate revenues of more than $1.44 billion to the joint venture or an average of $72 million annually.

According to Jose Oscar Orsini Bosch, president of Compania de Luz y Fuerza de las Terrenas, "After many months of investigation into the unique characteristics of AquaFuel and fruitful dialog between our organizations, we are especially proud to join forces with Toups Technology in the international introduction of this breakthrough alternative fuel."

AFD was formed as a Dominican company, owned 51% by the Luz y Fuerza consortium and 49% by TTL. Upon successful construction and initial operation of the first AquaFuel facility, AquaFuel-Dominicana will receive exclusive rights for the commercialization of AquaFuel throughout the Dominican Republic, Caribbean, Central and South America.

The Luz y Fuerza consortium will supply funding, equipment and personnel, and assist in all areas related to design and construction. TTL will provide the proprietary AquaFuel production technology, and contribute personnel needed to support the engineering analysis, feasibility studies, plant design and construction.

"Introduction of AquaFuel technology is expected to have a significant impact on the Dominican Republic because the country's developing economy is heavily dependent upon crude oil and its derivatives," said Isaias Arbaje, vice president of AquaFuel-Dominicana. "Dominican government and economic leaders have voiced their support for the widespread use of AquaFuel."

Fuel prices in the country continue to rise: From 1967 to 1998, gasoline prices soared from RD$0.43 to RD $27.90 per gallon. Diesel fuel rose from RD$0.21 to RD$13.70 per gallon, while liquid petroleum gas (LPG) reached RD$175 per 100lbs. The country expects this trend to continue despite falling petroleum prices in the world market.

In 1998 alone, the company imported more than $1 billion of petroleum and its derivatives from major oil producers, including Exxon Corporation (NYSE:XON), Mobil Corp. (NYSE:MOB), and Royal Dutch/Shell Group (NYSE:RD).

Only 35% of the country's electric power is hydroelectric, the rest is oil derivative-based. Dominican residents and businesses typically pay $0.8-$0.25 per kilowatt-hour, as compared to $0.02-$0.14 in the United States.

"Despite the higher prices paid for electricity, the Dominican Republic operates with a deficit of electrical energy of 500-600 Megawatts annually," noted Arbaje. "This results in regular power-outages, as well as the unavailability of power in many areas.

"Long power outages of 4 to 8 hours occur daily because Corporacion Dominicana de Electricidad, the government-owned power company, cannot afford to fuel its inefficient gas turbine electric generators."

The Luz y Fuerza consortium has been pre-qualified to purchase up to 1,200 Megawatts of installed capacity from Corporacion Dominicana de Electricidad (CDE), and plans to install an additional 200-300 Megawatts throughout the Dominican Republic in 10-30 megawatt units.

According to AFD's president, John Rivera: "Given the scalability and portability of the AquaFuel system - from one to 30 megawatts - small Dominican cities and towns where it has been economically unfeasible to run transmission lines will now be able to enjoy dependable electric power.

"Further, as a natural by-product of the AquaFuel process, these units may also supply clean water for drinking and agriculture, which can generate millions of additional income to the joint venture."

AquaFuel has been analyzed by an international consortium of scientists, engineers, universities, government agencies and independent laboratories, including: The Institute for Basic Research; NASA Laboratories/Kennedy Space Center; U.S. Environmental Protection Agency (EPA); and the Briggs & Stratton Test Center. The results are published in Certifications I and II which are available from TTL or through its web site at http//:www.toupstech.com.

TTL commercializes late-stage technologies primarily in the energy, environment and natural resource market segments.

Company contacts: Isaias Arbaje, vice president of AquaFuel-Dominicana, [phone]; John Rivera, president of AquaFuel-Dominicana, [phone], fax [phone]; Mark Clancy, executive vice president of TTL, [phone], fax [phone]. James Dryer, public/investor relations for TTL, [phone], fax [phone], [e-mail].