CATALYTICA AND GENERAL ELECTRIC REPORT RESULTS OF CATALYTIC COMBUSTOR TEST AT GE; Major Milestone Achieved in Commercial-Scale Test.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- May 18, 1995-- Catalytica, Inc. (Nasdaq:CTAL), today reported the results of a recent successful test of their catalytic combustion technology for gas turbines. The test, conducted in a commercial-scale test stand at General Electric's Power Generation Laboratories in Schenectady, New York, demonstrated the ability of the catalytic combustor to achieve ultralow emissions of nitrogen oxides (NOx), carbon monoxide (CO) and unburned hydrocarbons (UHC).

The test was conducted at base load operating conditions for the GE Frame 9 turbine model. The test stand generates the equivalent of about 7 megawatts of electrical power and simulates at full-scale one of the fourteen combustors on the Frame 9 turbine. Similar catalytic combustor designs are expected to be applicable to the GE Frame 6 and 7 turbine models.

A summary of preliminary test results will be presented at the 40th ASME International Gas Turbine and Aeroengine Congress and Exposition being held June 5-8, 1995, in Houston, Texas. A full presentation of the test results will be made at the October 1995 International Gas Turbine Conference in Yokohama, Japan. Robert L. Garten, President of Catalytica Clean Combustion Systems, said, "The recent successful test at GE is a major step forward in the development of a catalytic combustor for large utility turbines, which represents a significant market for our product. The excellent performance achieved in this test demonstrates the commercial potential of our technology for GE turbines and for turbines in general."

The test is part of a Phase II commercial-scale testing program sponsored by Tokyo Electric Power Company (TEPCO) and GE to develop the Catalytica technology for application to GE gas turbines. GE is the world's leading manufacturer and supplier of power generation systems and services, including gas turbines and cogeneration power equipment.

Martin B. Cutrone, Program Manager at GE Power Generation Engineering, said, "This test marks a major milestone in the GE catalytic combustor development program since it achieved full combustor base load operating conditions at commercial scale. Both emissions performance and mechanical integrity of the system were excellent."

A catalytic combustor reacts fuel with oxygen in the air on a catalyst surface to form hot combustion gases that can be used to power a turbine. Unlike conventional flame combustion, which produces high levels of NOx emissions, catalytic combustion prevents the formation of this pollutant as well as carbon monoxide and unburned hydrocarbons. These smog-producing air pollutants are regulated in many localities worldwide.

Catalytica believes the turbine market represents an attractive opportunity for the company. According to the National Electric Reliability Council, over the next decade approximately 6,000 megawatts per year of new natural gas-fired turbine capacity is expected to be added to the current installed base of about 48,000 megawatts in the United States. World capacity requirements are estimated to be three times larger than the United States.

Catalytica is developing the next step in manufacturing technologies and products that offer economic and environmental benefits. Catalytica Clean Combustion Systems focuses on the development of such products for the power generation industry.

CONTACT: Catalytica, Inc.

Alice Galloway, 415/940-6382