DynaMotive Technologies announces second-quarter 1996 results.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 29, 1996-- DynaMotive Technologies Corp. (NASDAQ:DYMTF) Thursday announced that revenue for the company decreased to $119,240 for the second quarter of 1996 as compared with $180,319 for the same period in 1995.

Net loss for the three months ended June 30, 1996, was $906,189 or 8 cents per share on 10,396,872 weighted average common shares outstanding, compared with a loss of $303,748 or 3 cents per share on 10,275,990 weighted average common shares outstanding for the same period in 1995. Figures shown are in U.S. dollars and reflect U.S. GAAP standards.

"DynaMotive Technologies Corporation is currently building the foundation for strong growth in the intermediate and longer term for our products and technologies," said President and Chief Executive Officer Reinhold Roth, commenting on the company's quarterly performance.

"While actual revenues were down compared with last year, the second quarter was very positive and featured important marketing, partnership and product demonstration activities related to each of our core technologies. These include the BioMass Refinery, BioLime, and various BioOil products, DynaPower acid-free metal cleaning systems, and motion control actuator systems used on robotic automotive assembly lines."

In May, the company signed an agreement with Resource Transforms International Ltd. (RTI) of Waterloo, Ontario, which gives DynaMotive the exclusive license to RTI's patented Biotherm flash pyrolysis technology, a core component of the BioMass Refinery.

By the end of the second quarter, RTI had completed construction of a small Biotherm system capable of producing 500 kg of BioOil per day. DynaMotive commenced work on a 30-50 ton/day BioMass refinery demonstration plant in Vancouver.

Also in May, the Ohio Coal Development Office (OCDO) approved a collaborative program between DynaMotive and Babcock and Wilcox to test and scale up production and use of BioLime for commercial boilers. Thirty tons of BioLime will be tested in a 1.8 megawatt coal combustor at B&W laboratories in Alliance, Ohio.

In June, the Energy and Fuels Research Center of Pennsylvania State University released positive results from nine preliminary tests of BioLime showing the product simultaneously reducing SO2 up to 94 percent and NOx up to 44 percent in a 75 kW down-fired coal combustor. Additional tests at Advance Fuel Research in Connecticut achieved 78 percent capture of N20.

Installation of DynaPower Wire Cleaning System at Korea Wire Electrode Co. Ltd. in Changwon-City, South Korea, was completed in May 1996. The system is fully commissioned and, like systems at Nucor Wire in South Carolina and Gradic Wire AB in Sweden, successfully operates at cleaning speeds as high as 200 meters per minute and produces very high levels of surface cleanliness.

The company has recently extended its exclusive agreement with Black and Decker's German subsidiary Emhart Tucker GmbH to supply voice coil actuator based stud welding motion control systems until year 2001. During the second quarter, Black and Decker released another 30 units of the motion control actuators for production, bringing to 50 the total numbers of units which are expected to be delivered by the middle of the 1996 third quarter. -0- NOTE: DynaMotive is an advanced technology development company which commercializes products that improve industrial efficiency while solving major environmental problems. It has headquarters in Vancouver and has offices in Waltham, Mass., and London. The company has established strategic partnerships with corporate, financial, technology, university and government partners in the United States, Canada and Europe. These partners help finance, develop, test and commercialize the company's technologies.

DynaMotive has developed three core technologies to date. Two have produced commercial sales: an acid-free metal cleaning system for wire and steel manufacturing, and motion control actuator systems used on robotic automotive assembly lines. DynaMotive is currently developing a BioMass Refinery which produces clean-burning BioOil fuels (gas and oil) from recyclable waste as well as fuel additives such as BioLime and Noxolene for emission control.

CONTACT: DynaMotive Technologies Corp., Vancouver

Raymond McAllister, 604/222-5590

604/222-5545 (fax)

or

Coffin/KCSA Investor Relations, Sherman Oaks, Calif.

Steven B. Johnson, 818/789-0100

(fax) 818/789-1152