Dixie Arc Awarded $500,000 Contract to Build First Commercial Aquafuel Generator; Unit Destined for Dominican Republic Under $1.44 Billion, 20 Year Program.

LARGO, Fla.--(BUSINESS WIRE)--Jan. 20, 1999--Toups Technology Licensing, Inc. (OTC BB:TOUP) ("TTL") announced that it has awarded a $500,000 contract to 16-year old Birmingham, Ala.-based Dixie Arc, Inc. to manufacture its first commercial AquaFuel(tm) production unit.

The unit is expected to be the first of many units to be built for AquaFuel-Dominicana, a $1.44 billion joint venture between TTL and a consortium of private electric power producers in the Dominican Republic.

According to independent analysis, TTL's AquaFuel is a reliable, clean-burning alternative to fossil fuels and the only known fuel that can return 7-13% oxygen to the air upon combustion. It is readily produced from a patented process involving the electric discharge of carbon arcs in water.

"Dixie Arc's tradition of excellence, superior knowledge and extensive experience in arc furnace technology makes them ideally suited to engineer and manufacture the first commercial-sized AquaFuel production unit," stated Leon Toups, CEO of TTL.

Dixie Arc has designed the first AquaFuel commercial unit to produce a minimum of 4,000 cubic feet of AquaFuel per hour on a continual basis. The device, called the Dixie Arc Clean Arc Furnace System, will combine the proven Dixie arc furnace technology with a pressurized gas production apparatus. The unit will stand approximately 28 ft. wide, 20 ft. deep and 10-15 ft. high. Future units may be scaled up to four times this size.

"This first commercial unit will represent a number of breakthroughs in the design and implementation of the AquaFuel process," noted Toups. "The unit will use off-the-shelf, reliable electric arc technology and produce commercial quantities of fuel for electric power generation and other purposes."

As compared to the DC (direct current) powered AquaFuel demonstration and pilot units created by TTL, the Dixie Arc unit will use a three phase AC system with an electric power supply of 300 KVA. Carbon arcs will be produced from a common electrode mantle and three movable electrodes. Electrodes will be driven hydraulically and controlled by a programmable logic controller with optimized parameters. The advanced control system, along with improved carbon rod material, is expected to provide a dramatic reduction in the consumption of carbon.

"We have been producing AquaFuel in the lab with two standard carbon rods that crumble quickly when exposed to the high temperatures of the electric arc, which adds to the cost of production," said Mark Clancy, TTL's executive vice president and director of sales. "The Dixie Arc AquaFuel commercial unit, on the other hand, will use hardened carbon rods that may be expected to last more than 48 hours before replacement. The end result should be AquaFuel produced at a price highly competitive to fossil fuels."

The unit may also be configured to treat sewage or other forms of wastewater. Independent research on AquaFuel indicates that "when primary applications such as recycling are included, and AquaFuel is produced as a byproduct, AquaFuel can be considered to be produced free of any cost."

According to Sandra Vetters, president of Dixie Arc: "The engineers of Dixie Arc have already completed the initial stages of design and construction of a pilot unit, which will soon lead to construction of the full-size commercial unit. We are excited about this new application of Dixie Arc technology and we are fortunate to be chosen by TTL as the company that will make commercial production of this new alternative fuel a reality." Completion of the final commercial unit is scheduled for April 1999.

Dixie Arc is a fully integrated fabricating and machine facility for both manufacturing and re-building of electric arc furnace components, as well as other custom designed products used in foundry and steel mill operation. The company specializes in the design and manufacture of arc furnace components, including electrode arm bus work, electrode arm assemblies, electrode holder assemblies, and related mechanisms. The company's clients have included U.S. Steel (NYSE:X), Bethlehem Steel Corp (NYSE:BS), and Birmingham Steel (NYSE:BIR).

About AquaFuel

The AquaFuel process involves an electric discharge on carbon rods within ordinary, sea or other forms of water. The discharge decomposes the carbon rods, separates the water and creates a plasma of mostly ionized hydrogen, oxygen and carbon atoms at about 5,000(degree)C. The atoms combine in various forms, cool down in the water surrounding the discharge and bubble to the surface where they are collected and stored as AquaFuel.

AquaFuel has been analyzed by an international consortium of scientists, engineers, universities, governmental agencies and independent laboratories, including: The Institute for Basic Research; NASA Laboratories/Kennedy Space Center; U.S. Environmental Protection Agency (EPA); and the Briggs & Stratton Test Center. The results are published in Certifications I and II and are available from TTL or through its web site at http//:www.toupstech.com.

About Toups Technology Licensing

TTL acquires and commercializes late-stage technologies primarily in the energy, environment and natural resource market segments. The Company's technologies include AquaFuel, an alternative fuel that produces no harmful emissions; Balanced Oil Recovery Lift device that increases marginal oil field production; Multi-Purpose Generators which provide electric power co-generation that automatically parallels with the local utility power grid; and Electromagnetic Tire Recycling, which converts scrap tires into marketable products without emissions. TTL's wholly owned subsidiaries include: Advanced Micro Welding/Metal Fabrication; and Brounley Engineering & Associates, which provides radio frequency power generators for lasers, plasma etching and other applications.

Company contacts: Mark Clancy, Exec. V.P. of TTL, 727/548-0918, fax [phone]; Matt Vetters, V.P. Sales of Dixie Arc., 205/252-6439, fax [phone]; James Dryer/Geoffrey Plank, public/investor relations for TTL, 561/655-7575, fax [phone], [e-mail].

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Operating results may be affected by a variety of factors, many which are beyond the control of the Company. The factors include the levels of orders received and shipped in a quarter; whether and when order options are exercised; customer order patterns and seasonability; contract mix and shifting production and delivery schedules; manufacturing capacity and yield; cost of labor, raw materials, supplies and equipment; technological changes; competition and competitive pressures on pricing; economic conditions in the United States and worldwide, as well as other risks that are detailed from time to time in the Company's filings with the Securities and Exchange Commission. Specifications and time-tables may change without notice. AquaFuel is a trademark of Toups Technology Licensing, Inc.