Digital Energy & Farming in Agreement to Acquire Exclusive Distribution Rights to Brownout and Blackout Protector.

Energy Editors/Business Editors

NEW YORK--(BUSINESS WIRE)--March 29, 2004

Digital Gas, Inc. (OTC Pink Sheets: DIGG) announced that Digital Energy & Farming, Inc., its wholly-owned subsidiary, has signed an agreement with Liam, Inc. of Maynardville, TN to acquire the exclusive distribution rights to a line of breakthrough electricity controllers designed to provide significant energy savings and prevent brownouts and blackouts. The controllers ate patented, UL listed and FCC approved.

The agreement is expected to increase Digital Energy & Farming's presence in the energy field as it will be distributing the first heating, ventilation and air conditioning (HVAC) controller in the marketplace. Liam's "supervisory HVAC controllers" have been tested for efficiency, reliability and user friendliness, both in the lab and in real time.

A demonstration of the HVAC controller by Oak Ridge National Laboratory (ORNL) in hotel rooms, sponsored by the U.S. Department of Energy's Federal Energy Management Program (FEMP), found that in occupied rooms where the HVAC controller was not used, the HVACs consumed 32.1% more energy compared to the controlled rooms using the HVAC controller. In unoccupied rooms where the HVAC controller was not used, the HVAC consumed 43.1% more energy compared to the controlled rooms. Using Liam's final updated system, there was no record of guest complaints. In the Technology Installation Review article of FEMP's Office of Energy Efficiency and Renewable Energy that reported the demonstration, it was also reported that Phillips Consumer Electronics Company showed a potential 50-80% savings in preliminary laboratory-simulated tests in unoccupied lodging rooms employing the controller.

Digital Energy & Farming intends to market the device to hotels, motels, resorts, major utilities, other power companies, office buildings, apartment complexes, government buildings, military installations, airports, hospitals, nursing homes and other venues. Management believes that this HVAC controller will be widely accepted by the above venues for the following reasons: 1. it can be installed to air conditioning units or thermostats in 5 minutes as opposed to one or more hours; 2. the unit does not require an HVAC technician or electrician for installation; 3. total cost to install is several hundred dollars less then conventional units and provides brownout and blackout protection features that conventional units do not.

Commenting on the brownout and blackout protection features of his products, Kenneth Winters, President of Liam, Inc., said: "If one million of these units were in the market last summer at a cost of under $400 million, we would have saved the Department of Energy estimated $6 billion lost by the federal government, state governments, utilities, businesses and consumers and not still be in a position to suffer these same losses again this summer". Mr. Winters has agreed to provide consulting services to Digital Energy & Farming to assist the company's efforts to distribute these products, technologies and systems.

Liam's HVAC is a simple, patented, plug-in device installed between a wall outlet and either the room HVAC or a thermostat. The original design of the device was directed to the detection and control of voltage irregularities of the power supply to individual package terminal air conditioners (PTAC) to protect them from damage. The next generation device incorporated sensors, as well as phone, internet and satellite access to permit remote control of the units by hotel or building operators, as well as utility companies. To further enhance the benefits of the product, a monitoring device was added that can detect smoke, fire or extreme cold. Liam has a "PTAC Control Unit" (PCU-P); a "Thermostat Control Unit" (PCU-T), and a "Power Shedding Unit" (PCU-S), as well as a full-featured thermostat unit which can sell as a new "enhanced thermostat" or to replace existing thermostats.

Liam has pre-existing contracts and agreements with several RCA distributors in the Eastern United States. Digital Energy & Farming has agreed to respect these pre-existing relationships. In addition, Liam has reserved the right to be the contact point for the following utilities: Consolidated Edison (CE-NYSE), Niagara Mohawk (NMKG - NYSE), Detroit Edison (DTE-NYSE), Minnesota Power (ALE - NYSE), Georgia Power (SO-NYSE), Florida Power & Light (FPL-NYSE), Tampa Electric (TE-NYSE), Utah Power (PPW-NYSE), Bonneville Power, Long Island Power Authority and the TVA.

In order to penetrate this market as rapidly as possible, Digital Energy & Farming will use industry experts to assist it in devising and implementing a commercialization plan. For instance, a major international energy consultant has agreed to advise the company regarding its commercialization plan and in dealing within the utility industry. When the company finalizes its entire consultant, advisor and industry and trade organization agreements and relationships, it will make a defining announcement in this area. To review reports on Liam's products, technologies and systems, visit http://www.dvamedia.com/digital.

Since Digital Energy & Farming intends on being an electricity provider through its energy & farming centers and coal bed methane gas businesses, this agreement is important to the company. Further to electric generation and distribution, the company also intends to market a low-cost SOFC device that can make any residential and or commercial building in North America grid-independent while at the same time reducing the utility bill of that building by approximately fifty percent and the CO2 emissions by fifty-plus percent. This device requires only two-kW for an average residence while providing completely for hot water, space heating and air conditioning.

Digital Energy & Farming announced several other developments. In the waste processing area, the company has found a site in the Midwest to commercialize the processing of tires and is in the process of closing its first agreement with a waste supplier who has agreed to run the operation. In the coal bed methane area, the company's first wells will be drilled in April.

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 (732)-927-4073 or email [e-mail]

DIGG -- Digital Gas, Inc.

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