Digital Energy & Farming and Energy Savings & Security Sign Agreement for up to $2.25 Billion in Funding.

Business & Energy Editors

NEW YORK--(BUSINESS WIRE)--May 7, 2004

Digital Gas, Inc. (OTC Pink Sheets:DIGG) -- Digital Energy & Farming announced that it and Energy Savings & Security LLC, a newly organized subsidiary, have signed an agreement with Financing For Industry ("FFI"), of Jamesburg, New Jersey, to provide up to $2.25 billion in financing for their respective businesses.

FFI will provide up to $2 billion in a purchase order line of credit, that will finance the purchases of Energy Savings & Security's breakthrough HVAC Controllers by major utilities. The company also anticipates purchases from hotels, motels, resorts, office buildings, apartment complexes, government buildings, military installations, airports, hospitals, nursing homes and other venues.

In a related transaction, FFI will provide Digital Energy & Farming with up to $250 million in funding for acquisitions of natural gas and coal bed methane gas properties. The target acquisitions will have to have significant current cash flows and highly prospective development potential to qualify for the funding. Digital Energy & Farming intends to use the funding to acquire companies with both significant cash flows as well as development potential in areas close to end users for energy.

The signing of this agreement will allow Digital Gas and its subsidiaries to not only successfully conclude pending investment banking deals, but also to rapidly expand its businesses in the energy field. In particular, financing the anticipated rapid growth of Energy Savings & Security, will allow for a steady stream of significant cash flows. The company intends to distribute these cash flows evenly between common stock dividends and reinvestment in gas properties developed to feed solid oxide fuel cell based distributed electrical generation systems.

All of this, is consistent with the company's previously announced intent to develop solid oxide fuel cell (SOFC) based electric and heat generators for the home, small business and industrial markets. These SOFCs would be extremely cheap to produce, capable of rapid start-up, and would be capable of being operated on various fuels including, natural gas, propane, ethanol, coal bed methane and liquid hydrocarbons.

Financing For Industry operates both domestically and internationally in a variety of industries. FFI's experienced and highly accomplished professionals specialize in structuring financing packages tailored to the needs of individual businesses and corporations. In addition to having significant experience in handling complex financial transactions, FFI has special capabilities in equipment financing, leasing, asset backed lending, commercial mortgages, inventory financing, purchase order financing and government funding.

Digital Gas is committed to developing clean gas, electricity and food in the US in order to provide its shareholders with high yield and high growth in a safe and secure part of the world, the heartland of the US.

For further information: call Brian Smith [phone] or email [e-mail].

For inquiries from the utility industry or potential strategic partners: call Rusi F. Patel [phone], Ext 217.