Save The World Air Inc. Files Form 10KSB with U.S. Securities and Exchange Commission.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--March 26, 2004

Mr. Edward Masry, Chairman and Chief Executive Officer of Save The World Air Inc. (Pink Sheets:ZERO), announced today that the company has submitted its Annual Report for 2002 (Form 10KSB), with audited financial statements, to the U.S. Securities and Exchange Commission.

He also announced that the company (and its auditors) is presently finalizing the Annual Report for 2003, along with quarterly reports for this period, and that submission of these documents is anticipated on or about April 14, 2004.

Within the Annual Report, SWA disclosed: "In December 2002 we retained the RAND Corporation to study the validity and market potential of our technology." In April 2003, RAND submitted to SWA an annotated briefing entitled Magnetic Treatment of Fuel: A Survey of the Scientific Basis for Technology Application, which presented their initial findings. As a result of the findings contained within that report, "RAND determined that a sufficient theoretical basis exists to warrant entry into a comprehensive product testing program." In May 2003, SWA "entered into an arrangement in which RAND would coordinate and supervise both a theoretical scientific study of the concepts underlying the ZEFS device as well as an empirical study."

RAND Corporation, in concert with subcontractors, is presently conducting laboratory tests of aftermarket vehicle retrofit devices and pre-combustion fuel testing. Additionally, these tests are designed to "measure the effect of a magnetic field on viscosity and surface tension for a range of fuels (including diesel). If the observed changes in fluid properties are on the same order-of-magnitude as the changes required to impact the atomization process, these two studies will provide evidence of a physical basis for the effects of magnetic fuel treatment on combustion processes."

Initial tests of the ZEFS device, which originally led company executives to retain the RAND Corporation to conduct the expanded study, were conducted in August 2001 at the EPA-recognized Northern California Diagnostic Laboratory. These tests, as cited in the NCDL report, indicated reductions in hydrocarbon emissions, carbon monoxide, and in NOX for FTP CVS (City tests) and for HFET (Highway tests). In addition to emissions reductions, NCDL also reported a corresponding increase in fuel economy for the test vehicle.

With regard to research and development, SWA disclosed in their Annual Report that the company is "actively continuing with our research on the ZEFS device for use on gasoline-powered engines and have taken steps to finalize the development of versions of the device to fit on carbureted, center point, and multi-port fuel injection systems." SWA has "established a research and development facility in Queensland, Australia..." and through 2003 has "continued research on devices for the two and four-stroke engines and thin line two and four barrel carbureted devices." The company has also "expanded research and development to include applications of the ZEFS technology to diesel engines, motorbikes, and boats."

During the period covered by this report, SWA disclosed that the company also acquired "the patent application for the ZEFS device (PCT/AU1/00585) filed originally by Jeff Muller in Australia in May 2000..." and that "the International Filing Application for our ZEFS technology was filed on May 19, 2001 (Official No. 10/275946) (PCT/AU1/00585) and modified as ZEFS Mark II on July 9, 2003." In November 2003, SWA completed the initial patent application process in Australia for the Multiport Fuel Rail Emissions device and the ZEFS Mark III. In December 2003, New Zealand granted SWA's patent. The company is presently awaiting final patent reviews in other countries where applications were filed. Overall, SWA has "applied for a patent on an international basis in 66 countries worldwide."

With regard to ongoing legal proceedings it was reported by the company that on July 2, 2002, SWA "filed a cross-complaint in the SEC action against Jeffrey Muller (the former Chairman of SWA) and others seeking injunctive relief, disgorgement and financial restitution for a variety of acts and omissions in connection with sales of our stock and other transactions occurring between 1998 and 2002." Through this pending litigation in U.S. District Court, the company, which presently has only approximately 34 million shares of common stock issued and outstanding, is seeking the cancellation of eight million shares and the cancellation of common stock purchase options for an additional ten million shares.

During the period covered by this report, SWA has been successful in raising over $2.8 million in a private placement to support operations and research and development.

Save The World Air Inc. was created to develop, manufacture and market devices using proprietary technologies that can be installed on motor vehicles to reduce harmful emissions, improve fuel efficiency and/or improve performance.

Safe Harbor Statement: The statements contained herein, which are not historical, are forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward looking statements, including, but not limited to, the SWA's ability to market its technologies and devices and future customer acceptance for these products and services and other risks set forth in SWA's filings and future filings with the Securities and Exchange Commission, including those set forth in SWA's Annual Report on Form 10-KSB for the year ended December 31, 2002.