Terra Systems Signs Coal Technology Agreement With Ocean Power Corporation.

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Business Editors

LINDON, Utah--(BUSINESS WIRE)--Nov. 27, 2001

Terra Systems, Inc. (PINK SHEETS - TSYI) announced today that it has signed a technology agreement ("Technology Agreement") with Ocean Power Corporation (OTCBB - PWRE).

Ocean Power Corporation is a development-stage company, based in El Dorado Hills, CA, whose business plan is to design, manufacture, and market integrated modular equipment/components which will produce both electricity for, and pure water from, its seawater desalination system. The three-year Technology Agreement requires Terra Systems to work exclusively with Ocean Power to jointly develop an integrated coal-fired system which would utilize Terra's Pneumatic Accelerator technology, in conjunction with Ocean Power's Stirling Engine technology. The purpose is to create a power plant which combusts coal more cleanly than currently available alternative polluting technologies.

Commenting on the Technology Agreement, Clayton Timothy, Chairman of Terra Systems, stated: "Coal is the major fuel used to generate electricity throughout the world; but, its combustion causes pollution. Therefore, coal is the initial target market for application of our Pneumatic Accelerator technology. We believe our technology can substantially reduce several prime air pollutants, especially nitric oxides, sulfur dioxide, and particulate emissions. We are pleased to have the opportunity to work exclusively with Ocean Power to develop our technology for use in its Stirling Engines. We expect our joint development efforts to succeed and, if so, they could add a portion of the developing distributed generation (off-the-electricity grid) market to the already huge worldwide coal market in which about 5 billion tons are produced annually."

Also regarding this development, Joseph P. Maceda, President of Ocean Power, said: "We are excited about the potential for this Technology Agreement because it merges two very promising technologies: Ocean Power's advanced Stirling Engine and Terra Systems' recently patented Pneumatic Accelerator. The coal-burning technology of Terra Systems offers Ocean Power the prospects of obtaining major reductions in several coal pollutants, which could enable us to add coal to our portfolio of environmentally-acceptable fuel sources. This, in turn, could greatly broaden the market acceptance of our Stirling Engine because coal is such an abundant fuel - world proved recoverable coal reserves total about 1.1 trillion tons - and is readily available in so many regions of the world."

Terra Systems, Inc. was incorporated in Utah in 1996 and is presently a development-stage company. It is primarily engaged in the development and commercialization of its patented pneumatic accelerator. This device is a gas linear particle accelerator, which conveys and processes bulk materials at high velocity in a particle isolated state, using air as the medium of movement. This technology operates efficiently at ambient temperatures and at low pressures and does not use water, the generally more costly traditional alternative for processing bulk materials. Virtually, all organic and inorganic bulk materials used in basic industries can be more economically separated and classified by our dry-process technology. This capability facilitates a number of associated procedures, including: drying, micropulverizing, mixing, forming, conveying, and loading. In addition, bulk materials can be beneficiated in important ways including moisture reduction, ash reduction, Btu enhancement, and electro-customization. Our system can perform multiple tasks, needs less maintenance, requires no chemical additives, and can improve the surrounding environmental quality. Opportunities are seen for many applications in an array of large industries including power generation, agriculture, mining, environment, construction, ceramics, and materials transportation. We estimate that our technology could generate economic returns to industrial users in the form of revenues and/or cost savings in the area of $2 billion within a few years, if adopted for implementation in several large projects. Terra Systems anticipates it will share in these economic returns through fees, royalties, and profit-sharing from licensing of its technology. TSYI has approximately 18 million shares currently outstanding.

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www.tsyi.com

www.pwre.com

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