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Southern States Power Co Awarded First Contract for OXyG B-60 Biodiesel

3 August 1999

    SHREVEPORT, La., Aug. 3 -- Southern States Power Company
(OTC Bulletin Board: SSPC) (http://www.sspowerco.com) has been awarded the first
"Green Fuels" Biodiesel contract from Deer Valley Unified School District
(DVUSD) (http://www.dvusd.k12.az.us) in Phoenix, Arizona, the largest school district
in the State, and covers over 367 square miles of territory. SSPC's OXyG B-60
Biodiesel will be used in 115 school buses that average 2,732 stops per to day
pick-up or drop-off students.  In 1998, the route miles were 1,452,853 miles
in a 175-day school year.  The fleet operates during rush hour traffic in all
three dispatches (AM, Midday and PM).
    SSPC's OXyG B-60 Biodiesel is a clean renewable "green" alternative fuel
option for many school districts throughout the United States. SSPC's
OXyG B-60 Biodiesel is lower in cost than competing alternative fuels such as
compressed natural gas (CNG), liquefied natural gas (LNG), liquid propane gas
(LPG), ethanol or methanol.  DVUSD considered cost and other factors including
safety of students and operation & maintenance cost.  They concluded that
SSPC's OXyG B-60 Biodiesel 20% blend was the lowest cost option for the school
district to meet current and future alternative fuel and air quality
requirements.
    The National Biodiesel Board (http://www.nbb.org) funded a research study done by
Booz-Allen & Hamilton, Inc. (http://www.bah.com) that compared the total cost of
biodiesel and competing alternative fuels in mass transit buses.  The study
found that biodiesel was lower in cost and more desirable for transit and
school bus operators because:

    1)  No engine or infrastructure modification is required.
    2)  Biodiesel fuel is non-toxic and biodegradable.
    3)  A 20-30% blend of biodiesel with petroleum results in no change in
        refueling or maintenance requirements.

    Further benefits from using the 20% biodiesel blend result from its
similarity to diesel in weight and BTUs delivered per gallon.  Other
alternative fuels require significant redesign and other modifications to make
up for lower BTUs of the fuel or storage requirements for gaseous fuels.
Special larger volume tanks lower the seating capacity of vehicles.  The loss
in bus seating capacity ranges from three (3) persons with ethanol and LPG to
eight (8) persons with CNG.  Higher bus weight from extra tanks or fuel means
increased brake and tire wear, lower payload capacity and reduced vehicle
design flexibility.
    Particulates from petroleum diesel engine exhaust are a health concern
because microscopic pieces of carbon or soot can lodge deep in the lungs,
increasing the risk of premature death from heart attack or lung ailments such
as lung cancer.  Particulate matter can also increase the frequency and
severity of asthma attacks and aggravates other lung ailments like bronchitis.
SSPC's OXyG B-60 Biodiesel, when blended with diesel fuel, changes the
petroleum diesel's fuel properties by boosting the cetane level (the component
in diesel that determines how fast diesel ignites).  The more complete the
combustion (burn) the more it reduces the amount of harmful solid particulate
matter entering the atmosphere.

    This press release contains forward-looking statements that should not be
used to make an investment decision.  Please refer to SSPC's web site
(http://www.sspowerco.com) and other sources for detailed information, or call
Michael Sealey (318) 221-5703, sspowerco@usa.net.