CryoEnergy International, Inc. Acquires Exclusive Worldwide License from CryoFuel Systems, Inc. to Design and Manufacture Systems for the LNG Market.

Energy Editors/Business Editors

NORWELL, Mass.--(BUSINESS WIRE)--Dec. 16, 2002

CryoEnergy International, Inc. (CEII), a company established and funded by an investment group headed by the Prometheus Venture Fund LLC and Norwood LDK, LLC, has successfully completed negotiations for an exclusive worldwide license to patented intellectual property initially developed by CryoFuel Systems, Inc. (CFS).

CEII was formed to design and manufacture systems for the liquid natural gas (LNG) market segment. CryoFuel Systems, a company best known for commercializing and licensing small-scale distributed LNG liquefiers, will continue to support the development of the Technology.

CEII will build on the invaluable expertise it has acquired from CFS to become an early and leading player in the rapidly developing market for alternative fuels. CEII will focus on commercializing small, scaleable, and transportable liquefaction systems capable of rendering high quality LNG streams from low-cost waste gas sources, including landfill, stranded well, coal seam, anaerobic digester, and flare gas, as well as pipeline gas.

In the coming months CEII will fulfill its existing purchase orders for multiple stranded well and landfill gas purification and liquefaction systems and continue to expand on its unique cryogenics expertise dealing with the production, storage, and distribution of alternative fuels.

CEII's corporate offices are located near Boston in Norwell, Massachusetts; its operations and research and development center is located in Monroe, Washington; and its manufacturing facility is located in Sultan, Washington. For more information on CEII, please log onto our website at www.ceii.com.