DynaMotive Technologies Corporation Announces Name Change to DynaMotive Energy Systems Corp. Company to Exploit Opportunities in Renewable Energy Markets

    VANCOUVER, July 10 - Richard Lin, Chairman of DynaMotive
Technologies Corporation (OTCBB: DYMTF) has announced that the Company's
shareholders approved the name change at the last annual general meeting and
extraordinary general meeting held in Vancouver BC on the 26th of June 2001.
The new name, DynaMotive Energy Systems Corporation (DynaMotive Energy)
reflects the focus and direction of the Company.
    DynaMotive Energy has developed a highly efficient technology that
converts forest and other agricultural residues into char, non-condensable
gases and BioOil, a renewable and environmentally friendly liquid fuel that is
capable of replacing fuel oil, diesel oil and natural gas in power and heat
generation plants and other applications.
    Through the application of its patented technology, DynaMotive Energy
will tap into an abundant resource available worldwide which is currently
largely discarded at an immense cost to the agricultural and forest industries
and instead convert it into a valuable resource. Examples of biomass are
forest residues, wood bark and sugar cane bagasse. DynaMotive Energy has
successfully proven that these residues can be converted into BioOil and has
demonstrated that they represent a renewable and environmentally-friendly oil
reserve that can be converted into oil on demand without the exploration and
environmental risks associated with the conventional hydrocarbon industry.
    In order to provide value added services in the form of competitively
priced renewable energy solutions, DynaMotive Energy has entered into
cooperation agreements with engineering and turbine manufacturing firms to
commercialize its technology. Through these agreements, the Company has gained
the capacity to provide innovative, integrated waste to power and heat
solutions to biomass residue intensive industries, particularly in areas that
are remote from electricity grid locations and economies that are heavily
reliant on fuel imports. DynaMotive Energy plans to build its first integrated
power project and expects to generate its first revenues from power in 2002.
    DynaMotive Energy will initially target power projects in remote-from-
grid locations and in island and other economies heavily reliant on fossil
fuel imports, where it expects to be competitive against conventional power
generation. Additionally, DynaMotive Energy is targeting the forest, pulp and
paper and furniture manufacturing industries where the combination of residue
disposal costs and energy requirements are expected to make the Company's
systems competitive.
    DynaMotive Energy further expects to take advantage of market conditions
that have emerged from Climate Change Legislation enacted in various parts of
the world that provide enhanced opportunities for renewable energy projects.
Demonstrative of this was the Company's acquisition of controlling interest in
Border Biofuels in the UK, and through it access to 69 MegaWatts of power
generation contracts that are backed by the UK's Renewable Energy Obligation.
These contracts provide long-term electricity purchase agreements at highly
advantageous prices.
    By virtue of utilizing organic waste, the fuels produced by DynaMotive
Energy are deemed to be CO2 neutral and have no sulfur compounds. Furthermore,
due to its water content, thermal NOx is lower than fossil fuels it aims to
replace.
    DynaMotive Energy's corporate headquarters are in Vancouver, BC, Canada
and it also has operating subsidiaries in Europe - London, UK - and the US -
Los Angeles, CA.
    DynaMotive Energy has received and continues to receive financial support
from the Federal Government of Canada through National Resources Canada
(NRCan), National Research Council of Canada and Technology Partnerships
Canada (TPC). Its European Subsidiary has received support from the European
Commission - Joule Program, and in the UK from the Department of Trade and
Industry. Privately, the Company has also received support from the British
Columbia Advanced Systems Institute which has a proven track record of
investing in BC technology companies to help them achieve their
commercialization objectives.
    DynaMotive Energy has developed partnerships with industry leaders that
include amongst others Canadian Forest Products (Canfor), one of Canada's
largest forest companies; Grupo Cosan Bom Jesus, a leading sugar and ethanol
producing company from Brazil; Orenda Aerospace - part of Magellan Aerospace
of Canada - which is internationally recognized in the aerospace industry and
which is also a leader in BioOil power package development. DynaMotive Energy
also recently partnered with Tecna SA, an internationally recognized
engineering and management firm which has agreed to purchase DynaMotive Energy
equity and to co-develop BioOil projects with the Company. Tecna SA has over
25 years of experience in engineering, procurement and construction of
industrial projects.

    Forward Looking Statement
    Statements in this news release concerning the Company's business outlook
or future economic performance; anticipated profitability, revenues, expenses,
or other financial items; and statements concerning assumptions made or
expectations as to any future events, conditions, performance or other
matters, are "forward-looking statements" as that term is defined under the
Federal Securities Laws.
    Forward-looking statements are subject to risks, uncertainties and other
factors which could cause actual results to differ materially from those
stored in such statements.  Such risks, uncertainties and factors include, but
are not limited to, changes and delays in product development plans and
schedules, customer acceptance of new products, changes in pricing or other
actions by competitors, patents owned by the Company and its competitors, and
general economic conditions, as well as other risks detailed in the Company's
filings with the Securities and Exchange Commission.