DynaMotive Technologies agrees in principle to acquire Waste Reduction Technologies in a stock transaction.

NEW YORK--(BUSINESS WIRE)--February 25, 1997--DYNAMOTIVE TECHNOLOGIES CORPORATION (NASDAQ:DYMTF), today announced the completion of an agreement in principle to acquire 100% of the outstanding shares of Waste Reduction Technologies Inc. (WRT) of Covington, Kentucky in a stock transaction. The acquisition is expected to be completed in 60 days following due diligence and ratification by DynaMotive's Board of Directors. WRT is a waste management company that has exclusive rights to a proprietary steam classification and waste reduction process developed at the University of Alabama at Huntsville and subsequently proven in a test site under sponsorship by the Kentucky Natural Resources and Environmental Protection Cabinet - Division of Energy. The acquisition was facilitated by Chase Manhattan Bank, DynaMotive's partner for financing and marketing its energy products.

Dr. Bernard Hamel, consultant for Chase Manhattan's Global Energy and Environmental Group, said, "The combination of DynaMotive's capability to produce inexpensive clean burning oil from organic waste with WRT's steam classification and waste reduction process represents the most significant breakthrough that I have seen in converting raw household garbage to a cleaner burning fuel than natural gas at competitive prices. The clean, low cost separation of the cellulosic pulp in the WRT process also makes other garbage to energy applications like gasification more attractive."

Reinhold C. Roth, President and CEO of DynaMotive Technologies, said, "WRT's process complements our own waste to energy technology which converts the organic fraction of municipal waste into clean burning fuels and additives for emission control. WRT's process cost-effectively treats raw, unsorted household garbage with pressurized steam to break up the organic biomass into cellulosic pulp, separate organic materials from recyclables like metals, plastics and glass, and reduce volume by 85 to 89%. The sterile, cellulosic fraction becomes an odour free, uniform feedstock that is ideal for our BioTherm(TM) reactor which converts about 50% of this feedstock into BioOil, a clean burning fuel that is very low in ash, sulphur and nitrogen emissions. BioOil will replace fossil fuels and reduce greenhouse gases because it is made from renewable waste. Many utility companies are paying higher prices for renewable fuel to produce environmentally friendly energy, which is selling at a premium in many countries as compared to energy derived from fossil fuels."

Anthony Noll, President and Chairperson of Waste Reduction Technologies, Inc., said, "We are extremely pleased to join the Chase/DynaMotive alliance. Merging the two technologies and operating them in tandem will enhance shareholder value and give WRT access to new proprietary fuels and fuel additives made from cellulosic pulp recovered from processed solid waste. Our combined technologies offer the first real option to resolve the struggle faced by communities to manage solid waste in a way that produces both environmental and economic benefits for local shakeholders. The technologies promote a truly sustainable alternative to wasteful land disposal or incineration of resources."

DynaMotive is an environmental technology company that is developing a BioMass Refinery to produce clean burning fuels and fuel additives that capture air emissions in coal fired utility boilers and value added products like chemicals, plastics, octane enhances and organic slow release fertilizers.

CONTACT: DynaMotive Technologies Corporation

Raymond McAllister, 604/222-5590