Regi U.S., Inc. -- Fabricating Completed for the U.S. Navy Project.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 1, 2002

REGI U.S., Inc. (OTCBB:RGUS), U.S. subsidiary of Reg Technologies, Inc. (RRE.V / OTCBB:REG RF), wishes to announce that the hardware for building and testing the 0.5 H.P. Rand Cam(TM) ceramic engine has been fabricated.

The new engine will be developed for powering the U.S. Navy's new Smart Warfighting Array of Reconfigurable Modules (SWARM) low cost unmanned aerial vehicles. Assembly and testing has now commenced by REGI U.S., Inc.'s Engineer at Advanced Ceramics Research at their Tucson, Arizona facilities.

Patrick Badgley, vice president of REGI U.S., Inc., states, "The Rand Cam(TM) rotary engine for the Navy's unmanned aerial vehicle, christened "SWARM", will be made of ceramics and plastic, lightweight materials that are preferable to metal because they are cheaper, they can't be easily detected by radar, and they can withstand higher temperatures, enabling the engine to burn fuel more efficiently. The Rand Cam(TM) ceramic engine in SWARM planes can be adopted by other government agencies or even private industry for a variety of purposes: weather research, traffic control, monitoring national borders for illegal immigrants, scouting forest fires or spotting stranded boaters or hikers."

Advanced Ceramics Research has been awarded the Phase I SBIR U.S. Navy contact to build and test a Naval 0.5 horsepower ceramic engine with REGI U.S., Inc.

About Advanced Ceramics Research

Advanced Ceramics Research ("ACR") has made an investment for a new state-of-the-art production facility for producing composite products. In addition, ACR is fully staffed with engineering and production personnel as it already has profitable ongoing commercial production. In addition, ACR has open space which will be available for production for the first several hundred Rand Cam(TM) engines in Phase III. Additional new production facilities are also being set up on a Native American reservation. ACR is a small award winning high-tech advanced materials company founded in 1989. ACR's customer base includes IBM, Lockheed, Raytheon, ATK, Aerojet, Kyocera, Smith Bits, Seagate, Ferrari, Honda, and the Federal Government. More information can be found at www.acrtucson.com.

About Regi U.S., Inc. / Reg Technologies, Inc

Reg Technologies, Inc. jointly owns the worldwide rights to the Rand Cam(TM) rotary technology with its U.S. subsidiary REGI U.S., Inc. and is currently incorporating its latest winged rotor technology to dramatically improve sealing and reduce friction in the diesel Rand Cam(TM) engine. The Company has designed and built an air pump for fuel cell applications as well as an air pump for the lumbar seats in automobiles and has filed for a patent for a Hydrogen Separator Technology. The Company has also built a compressor for air conditioning units for buses.

The Company's goal is to license the technology and/or to participate in joint ventures to manufacture specific Rand Cam(TM) applications and the Hydrogen Separator Technology.

On behalf of the board of directors

"John Robertson"

John Robertson

President

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Statements in this press release regarding REGI's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, including the impact of competitive products and pricing, the need to raise additional capital, uncertain markets for the company's products and services, the company's dependence on third parties and licensing/service supply agreements, and the ability of competitors to license the same technologies as the Company or develop or license other functionally equivalent technologies.