VS2 Announces Joint Venture With Russian Consortium of Energy Manufacturers to Deliver Industrial & Utility-Scale Power to North America.

Business Editors

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Aug. 23, 2001

VS2 Inc. (OTCBB:VSII) and "GITEKS" -- Russian Consortium of Energy System Manufacturers and Technical Support Providers (privatized members of former Soviet Ministry of Energy) -- today announced a joint venture to deliver power plants to North America and Latin American nations.

The Consortium "GITEKS" -- mandated by Russian executive order, following the collapse of the Soviet Union, comprises 28 principal members -- representing more than 1 million workers -- with a power plant delivery capacity equivalent to General Electric/Westinghouse.

The Consortium of the largest manufacturers for power stations and their component parts in Russia is scheduled to offer delivery of power plants, empowered by 2.5MW, 25MW and 110MW new generation gas turbines coupled with combined cycle state-of-the-art technologies -- with configuration capability up to 2GW to the U.S. marketplace -- commencing the fourth quarter of 2001.

Alexander Efimovich Podoksik, vice president of IBDB and chairman of IBDB-AM for the marketing bureau of the GITEKS Consortium, said the joint venture represents the first time that large-scale Russian-made power plants will be entering the United States.

"To expedite market entry" he said, "the Consortium has adopted a series of creative financing programs, including the availability of favorable long-term financing for credit worthy clients and revenue participation partnerships -- wherein the Consortium will invest technology and installed power plants in return for a revenue participation of the energy sales."

James W. Bojica, VS2 spokesman, stated that the company's joint venture partnership is the result of long-term negotiations and market preparedness. Bojica further stated that VS2 expects to be announcing utility-scale power plant sales contracts, in excess of 500MW within the final quarter of 2001.

VS2 is a working partner within the renewable alternative energy sector. The company is scheduling announcements of its marketing efforts within the near future, with an emphasis on HCPV photovoltaic and fuel cell technologies.

Certain of the above statements may be forward-looking statements that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors, including competitive developments and risk factors listed from time to time in the company's SEC reports.