BAT to Take New Emission Reduction Technology on America's Highways

    SAN DIEGO--June 25, 2001--BAT International Inc. (BAAT: OTC) announced today that its partially owned subsidiary Dolphin Automobile Company Inc. (Dolphin ACI) has successfully completed dynamometer testing of its new diesel engine emissions reduction technology; and Dolphin ACI was granted an experimental permit by the State of California to conduct on-road testing under Executive Order No.C-370-1.
    Initial testing that began in July 2000 on a diesel engine resulted in a 38% to 52% reduction in nitrogen oxide (NOx) gases and a 29% to 54% reduction in particulates.
    NOx and particulates (especially PM-10) are by far the most important diesel engine pollutants being addressed by the US EPA. Ocean Air Environmental provided the test equipment, took all reading and samples, and processed data.
    Much was learned from the initial Dolphin testing and the data provided much information to further improve the emissions control package. After substantial redesign and in-house testing a second independent test demonstration took place on Dec. 12, 2000, and yielded even more impressive results.
    The second test was conducted by Don Wolf and Associates, an independent, well-known company in the emissions testing industry. The tests were conducted at a variety of load settings from idle to 100% load at maximum torque rpm, and compared to baseline readings without the Dolphin exhaust package. In each case the results were immediate when the exhaust package was turned on.
    The reduction of NOx was from 30% to 56% with the higher reduction at high loads, which are the most troublesome to control because of high NOx emissions.
    Mark Wolf, who conducted the tests, indicated "the particulate reduction was dramatic." Reductions ranged from an unprecedented 80% to 90% at all loads.
    Many other observers including Dr. Igor Trestovich formally from the Soviet Union also attended both sets of independent testing.
    The challenge to reduce diesel engine emissions has been difficult. In California, although only 2% of the vehicles are heavy-duty diesel vehicles, they emit approximately 30% of the NOx and 65% of the particulate matter from on-road sources.
    Dr. Maghi Khair, Staff Engineer at Southwest Research Institute noted in a 1999 SAE conference that it is "difficult for diesel engines to meet projected nitrogen oxides and particulate matter standards. Traditionally measures aimed at reducing one of these two exhaust species have led to increasing the other. The physical characteristic, which is known as NOx / PM tradeoff, remains the subject of an intense research effort."
    LaStella, president of BAT International, stated: "The initial independent testing was very impressive, and the technology certainly works but much engineering and testing is still left to be done. The emissions package must now be tested in an on-road vehicle and then tested under US EPA standards which include longevity testing. Results are very exiting, however, unlike our fuel additive technology, which is already in use and generating cash flow, the exhaust emissions package still requires much work before it can be commercialized."
    LaStella went on to state: "In anticipation of on-road testing, Dolphin ACI applied for a experimental permit from the State of California to conduct on-road testing of all Dolphin ACI products which include its exhaust emission package and also its fuel additive packages" (see press release dated June 12, 2001, titled 'Millennium Fuels Corporation New High Octane Fuel with Dolphin's Additive Could Help Solve California's Gasoline Crisis').
    The experimental test vehicle is now under final construction and will take to the road in the near future. We are planning a final coast-to-coast run later this summer 2001.
    In the meantime, BAT International is also planning to apply for an additional experimental permit to test all of the Dolphin ACI emission reduction devices and additives on a stationary power generation unit. This could help California reduce emissions caused by use of older and dirtier generator units in order to offset the state's power shortage.
    BAT International Inc., this week will be one of several featured articles in the Investors Business Daily Journal (Partners Section: Investors Newswire) both on their Web site (www.investors.com) and on the newsstand. LaStella can also be heard in a 15 minute streaming audio interview on Streaming News Network, a New York financial investment news portal published by NexGen Publishing.
    Persons interested in the interview can listen to it on the World Wide Web by going to the BAT International Web site at www.baat.com. Listeners will be required by Streaming News Network to register at the site before listening to the interview.
    BAT International is a 9-year old holding company with various equity positions in other high technology companies. The Company actively supports its affiliate companies through research and development, financial advising, engineering, and marketing programs. BAT International uses its internationally recognized name to attract companies that have promising new technologies and products that BAT International can help develop and bring to market.