High Octane Fuel with Dolphin's Additive Could Solve Gasoline Crisis

    SAN DIEGO--June 12, 2001--BAT International Inc. (OTCBB:BAAT) announced yesterday (June 11, 2001) that its partially owned subsidiary company -- Dolphin Automobile Company Inc. (Dolphin ACI) -- has signed a contract to supply Millennium Fuels Corporation (MFC) with an additive package that would eliminate the lead in fuels while providing superior octane and other performance characteristics without MTBE.
    The announcement comes on the heels of a flurry of newspaper and media announcements that the federal government will soon make public its decision not to grant California an exemption to the Clean Air Act.
    As a timely coincidence on the same day (June 11, 2001) the front page of many newspapers across the country, including the L.A. Times, read "Gas additive rule won't be waived," "No waive, EPA said." The L.A. Times article said that: "The Bush Administration plans to deny California's request for exemption from a federal gas rule that state officials say would increase already rising prices at the pumps" (see L.A. Times article June 11, 2001).
    It could also cost California drivers as much as $450 million a year to replace MTBE with ethanol and could trigger fuel shortages.
    The article also stated: "The decision is likely to increase the friction between Davis and the White House, already at odds over electricity price controls. It also would complicate Davis' efforts to phase out the gas additive MTBE (methyl tertiary butyl ether), which has polluted ground water."
    Howard Gantman, a spokesman for Senator Diane Feinstein (D-Calif.) also stated: "The state urgently needs the waiver, MTBE pollutes the ground water, and there is not enough ethanol available without a price increase at the pump."
    Presently, the only practical solution to MTBE is ethanol. Millennium Fuels Corp. is involved in the development of "Super Ethanol." They have been working with Dolphin ACI to develop a "value added" additive package that increases octane, adds lubricity, improves combustion and could be mixed with ethanol to enhance the value of ethanol as an oxygenate. MFC's "Super Ethanol" has the potential to increase octane enough so that retail gasoline would meet the EPA's maximum RIED vapor pressure guidelines (RVP guidelines). The initial target market for the additive package is the racing industry, which is being asked by the federal EPA to eliminate lead from racing fuel. The initial use of the fuel in the Legends Car Series (800,000 gallons) is one of many racing vehicle applications including other race car circuits, sports boats, competition planes, etc. However, the major market opportunity is to incorporate the additive in a premium ethanol additive package that could be used not only to replace MTBE as an emissions additive but could also be sold as a premium gasoline additive with fuel economy and lubricity benefits.
    The Dolphin ACI additive package can be adjusted to create a variety of fuel formulations.
    Core Laboratories, a nationally known, certified laboratory has tested and certified several Millennium/Dolphin ACI formulated fuels with octane ratings all the way up to an unbelievable 214 octane.
    Joe LaStella, president of Dolphin ACI stated: "With the price differential at the gas pumps of 20 cents between regular and premium gasoline which have a difference of only 5 octane (regular gas 87 versus premium at 92 octane), an octane enhancer such as Dolphin ACI's could have a significant influence on the market. However, it is very clear that our additives would have to pass rigid and expensive EPA testing to be used in street vehicles. Therefore, we are now concentrating on sales for off-road usage and the racing industry usage for immediate revenue."
    LaStella also stated that "Dolphin ACI Management is currently in contact with the EPA to map out the most expeditious plans to complete the required EPA curriculum to enter the on-road consumer market."
    Dolphin Management believes that there exists a "middle-of-the-road" solution to California's immediate problem, and to eventually get rid of the controversial use of MTBE for good.
    Dolphin Management also believes that the proper additive combined with a lower percentage of ethanol in gasoline will not only provide the same emission benefits of MTBE but will also be able to increase fuel mileage and increase octane. Therefore, compensating for higher cost of the ethanol package.
    If Dolphin ACI is successful, everyone wins, including the agricultural industry.
    Dolphin ACI's partner in the fuel business, Millennium Fuels Corp., is already in the "Super Ethanol" business and has a very competent staff who helped to create our new environmentally friendly, high octane, renewable ethanol racing fuel. The same team will be pursuing the creation of an acceptable fuel formulation to get rid of MTBE forever. One of the best opportunities is meeting the EPA guidelines for RVP in finished gasoline.
    Both Dolphin ACI and MFC's Management are dedicated to production of advanced renewable clean fuels to replace fossil fuel usage.