BIORELEASE CORP. And POLAR MOLECULAR CORPORATION Sign Merger Agreement.

MANCHESTER, N.H.--(BUSINESS WIRE)--Aug. 2, 1999--

BIORELEASE CORP. (OTCBB:BRLZ) announces signing a merger agreement pursuant to which Biorelease will merge with POLAR MOLECULAR CORPORATION, a Utah corporation ("PMC"). As a result of that merger, the name of Biorelease will be changed to "Polar Molecular Corporation" and the current management team of Biorelease will resign and be replaced by PMC's management team.

The merger agreement provides, among other things, that Biorelease is to reverse split its outstanding common shares on a one-for-25 basis and is to spinoff or otherwise dispose of its wholly-owned subsidiary (and only operating company) Biorelease Technologies, Inc. To acquire PMC, Biorelease has agreed to issue to the PMC shareholders 13,620,000 post-reverse split shares. After the reverse stock split, and upon the issuance of common shares to the shareholders of PMC, Biorelease will have approximately 14,880,000 shares of common stock issued and outstanding, of which approximately 91.5% will be owned by the current shareholders of PMC and approximately 8.5% will be owned by the then current shareholders of Biorelease.

The completion of the proposed transaction is subject to, among other things, the filing with the Securities and Exchange Commission and effectiveness of a Form S-4 registration statement, approval by the shareholders of both companies, the completion of a private offering pursuant to which PMC is to raise at least $2,000,000 before closing, and other matters.

Biorelease, based in Manchester, NH, is engaged, on a limited basis, in the development and licensing of biotechnology-related products.

PMC, based in Denver, Colorado, develops and markets fuel additives. PMC's primary product, DurAlt (R) FC, is a fuel additive that has been widely tested for both performance and environmental impact over the past 10 years by independent laboratories, major oil companies and major engine manufacturers. DurAlt(R) FC has been shown to enhance fuel combustion efficiency and reduce octane requirement increase (ORI) and thereby enable gasoline engines to run properly on lower octane fuel that has been treated with DurAlt(R) FC. The phasing out of the use of MTBE as a smog-fighting additive has recently been discussed by EPA, State of California and others. MTBE, which is used in US motor gasoline at 5 to 15% by volume, also produces increases in octane ratings. Mark Nelson, President of PMC, stated "the potential elimination of MTBE from the available octane pool is an important market opportunity for PMC's DurAlt(R) FC technology. Industry leaders are now taking the position in private and industry discussions that the use of ORI (octane requirement increase) control additives such as DurAlt(R) FC represents the next frontier of additive technology to address issues related to the available octane pool and greenhouse gas reduction through improvement in fuel economy."

BIORELEASE CORP is a fully reporting publicly traded company whose common stock is traded over-the-counter on the Electronic Bulletin Board (OTCBB) under the symbol "BRLZ"