Cerulean - New Fuel Consumption-Cutting Product to Be Trialled by UK Bus Operator Stagecoach.

Energy Editors/Business Editors

OXFORD, England--(BUSINESS WIRE)--Sept. 28, 2003

-- Envirox Cuts Fuel Consumption by 10%

-- Next Generation Product to Be Tested in 1,000 Buses

Cerulean International Limited, the Oxford, UK-based subsidiary of the British nanomaterials company Oxonica Limited, has announced that its new product Envirox is to be commercially evaluated by Stagecoach UK, with a view to adopting the product over Stagecoach's 7000 strong UK bus fleet.

Using new technology, Cerulean has developed Envirox, a product based on a well-established oxidation catalyst, that has now been formulated for use within the fuel, delivering a cleaner and more complete burn within the combustion chamber. The product delivers 10% fuel economy benefits, as well as reducing carbon deposits in the engine and lowering emissions.

Envirox has been rigorously tested over the past three years both in extensive and successful field trials in the Asia-Pacific region, and in internationally recognised independent engine test houses.

The test data demonstrate that Envirox provides dramatic diesel fuel saving benefits under commercial conditions. Its use does not require any engine modifications, has no impact on lubricant performance, and the optimum dose rate is extremely low. An additional benefit is that carbon deposits within the engine are substantially reduced.

Cerulean is a member of the Clean Air Initiative for Asian Cities, jointly formed by the World Bank and the Asian Development Bank which aims to reduce the impact on health caused by mobile and stationary sources of pollution, particularly partially burnt fuel that leads to the smog which blankets many of the world's cities. Envirox addresses this problem in two ways - its fuel economy benefits mean that less fuel is required to obtain the same performance, conserving the world's stock of fossil fuels. In addition, by achieving a cleaner burn, exhaust emissions are reduced.

Stagecoach UK has signed an agreement with Cerulean International Ltd to trial this next-generation product in up to 1,000 buses across the UK.

Brian Souter, Chief Executive of the Stagecoach Group, said: "We believe this new product has huge potential and we are delighted to once again be leading the way in the UK bus industry in developing new ideas.

"Stagecoach is committed to playing its part in building a sustainable environment and improving the environmental management of its operations. This is yet another example of our drive to develop transport solutions that will improve the quality of life in our towns and cities."

Stuart Anderson, Business Director of Cerulean, commented: "We are very excited about the potential benefits of this product and, following extensive successful field trials overseas, we are delighted that Stagecoach has decided to evaluate this product in the UK. We look forward to delivering the same fuel savings and associated benefits here in our home market."

Cerulean

Cerulean International Ltd is a wholly owned subsidiary of Oxonica Limited. Oxonica is an exciting high technology company working in the field of applied nanotechnology. Lord Sainsbury recently announced the DTI's injection of GBP90m of funding into Nanotechnology, commenting "Nanotechnology promises huge benefits for the environment and for our health and wealth. Today's investment will help UK companies take advantage of the exciting commercial opportunities offered by scientific advances in nanotechnology."

Oxonica

Oxonica was created in 1999, to commercialise intellectual property developed over seven years at the University of Oxford by Professor Peter Dobson and Dr Gareth Wakefield. Oxonica has gone on to add further intellectual property to its portfolio, and currently has 31 filed patents. Oxonica's proprietary technologies enable it to create and engineer materials on the nanoscale, typically in the range of 5 to a few hundred nanometres, and to evaluate the properties of these materials to identify appropriate functionality to meet a real need.

For further information, please visit www.oxonica.com . Oxonica is based at 7 Begbroke Science Park, Sandy Lane, Oxford, OX5 1PF, United Kingdom. Tel: [phone]. Email: [e-mail]

Press contact for further information

Nigel Robson, Vortex PR, Island House, Forest Road, Forest, Guernsey, GY8 0AB UK. Tel: [phone]. Email: [e-mail]