Spectrum Oil Forms Subsidiary to Make Oil and Gas Land Acquisition. Financing Agreements Signed and Completed for Spindletop Energy L.L.C.

Business Editors

BAKERSFIELD, Calif.--(BUSINESS WIRE)--June 27, 2001

Spectrum Oil Corp. (NQB: SPUM) today announced the formation of SPUM Acquisition Corp., a wholly owned subsidiary of Spectrum Oil Corp.

The company confirms it is in negotiations to acquire private companies. These companies hold both working interest in oil and gas drilling plays and land leases. These leases border properties either connected to Spindletop Energy LLC properties (which Spectrum owns 50 percent of) or properties that have been identified as prospective by the SFD 2 technology.

The company has completed an investment agreement for up to two million dollars to fund the first phase of the Spindletop Energy LLC investment and drill the Hardeman Basin Number one well in Oklahoma.

Additional investors in the transaction include officers, directors and close associates of the company. Company oil consultants believe the Hardeman Basin number one well to potentially be a highly productive Pinnacle Reef discovery.

Detailed information regarding this Pinnacle Reef and how it was found using the SFD 2 is now posted on our website along with an updated corporate profile.

The company has identified and is working to confirm two additional significant plays. "If we are able to locate, confirm and successfully produce three Pinnacle Reef wildcats in a row we will have proven the ability of being the low cost oil and gas finder in the oil business," stated Sam J. Higgins, chairman and CEO.

Spectrum has chosen not to exercise its option for part of the Clearview Resources well it held in California. Management believes Spectrum should concentrate on the potential high returns possible from its investments in both SFD 2 Technology and Spindletop Energy LLC.

For more information, visit the company's Web site at www.spectrumtechnologycorporation.com.

Forward-looking statements, if any, in this release are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the company's products, competition, new products and technological changes, intellectual- property rights and other risks.