Digital Energy & Farming to Develop SOFC-based Generators for the Home, Small Business & Industrial Markets.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 26, 2003

Digital Gas, Inc. (OTC Pink Sheets: DIGG) announced that Digital Energy & Farming, Inc., its wholly-owned subsidiary, will develop solid oxide fuel cell (SOFC) based electric and heat generators for the home, small business and industrial markets, utilizing technology that it believes will result in breakthrough pricing for distributed generators.

The SOFCs can be produced with very little investment in capital equipment. The production equipment is modular allowing for easy expansion of production capacity to keep pace with demand. In addition, because the fuel cells stacks themselves are modular, they can be ganged up to create a wide range of power output generators. The highly simplified SOFC generators will allow for the creation of power generation products from 1 kW to several megawatts.

SOFCs are extremely cheap to produce, capable of rapid start-up, and can be operated on various fuels including, natural gas, propane, ethanol, coal bed methane and liquid hydrocarbons, among other advantageous characteristics. Cost is the most difficult commercialization barrier for virtually every competitor.

These extremely light-weight, compact systems will contribute to savings in transportation costs associated with shipping stack to customers. Hence, the fuel cells will generate a profit substantially earlier than its competitors can keep competitors at bay by being produced at commodity prices.

These uniquely designed breakthrough generators will be capable of running on various fuels, including natural gas, propane, coal bed methane, as well as liquid hydrocarbons. Based on an initial review of technical information and, subject to further testing, it is assumed that the Richardson Energy gas will be very suitable for use with these SOFC generators.

In general, Digital Energy & Farming determined that while PEM (low-temperature fuel cells) receive substantial publicity, their overall manufactured cost is higher than that of solid oxide fuel cells and their electrical efficiency is lower than that of solid oxide generators.

Molten carbonate fuel cells, in addition to being more expensive, were determined to require more maintenance than solid oxide fuel cells and also do not have the ability to perform thermal cycling (starting up and shutting down) as frequently as solid oxide fuel cells.

Digital Energy & Farming believes that consumers owning the Richardson gas generator, the Hansen Waste Processor and a product based on SOFC technology will be able to generate heat and electricity independent of the current system of energy suppliers. At the very least, dependence will be greatly reduced for most consumers. This is important as the US continues to be dependent on foreign oil and associated products that significantly spike during geopolitical crises.

The development of the products based on the SOFCs will be conducted in a planned development and manufacturing lab with Hansen Energy and Richardson Energy participating in the work. In addition to focusing on standalone versions of the respective products, the developers will also seek to integrate the three products and technologies in a manner that will further drive the cost of energy down for consumers. The company is currently considering several sites in the Midwest. The company will review each site carefully before deciding.

Several additional deals are being reviewed. If concluded successfully, these will provide Digital Energy & Farming with an even more complete package to offer consumers in the vital areas of energy and the environment.

Digital Gas is committed to developing clean gas, electricity and pure, pesticide and contaminant free 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.

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