DynaMotive to Ship 20 tons of Char to US for Additional Product Validation in Briquette Manufacturing

    VANCOUVER, Aug. 15 - DynaMotive Energy Systems Corporation
(OTCBB: DYMTF) announced today that it is shipping 20 tons of char produced
from its Vancouver pyrolysis plant to a leading briquette manufacturer in the
US. The shipment follows initial success in bench scale trials. Similar
development efforts have taken place in the UK through its subsidiaries
DynaMotive Europe Limited and Border Biofuels Ltd.
    DynaMotive's efforts in the development of commercial applications for
char follow the validation undertaken by the Company in its primary product
BioOil. Char is an important co-product of the Company's patented pyrolysis
process representing between 15% and 20% of the plant output by weight. As a
consequence, economic uses for char have a substantial impact on the economic
return of its process.
    The char produced by DynaMotive's system has low moisture content, high
calorific value and uniform grain characteristics that are deemed to be
suitable for this early application. The Company is following the same path as
in its BioOil development program and has in place, plans for the development
of higher value applications for this resource.
    Rodolfo Guido, Director of International Marketing for DynaMotive said:
"DynaMotive's process yields three products and almost no waste. Firstly,
BioOil which has been the main focus of development of the Company to date,
secondly, non-condensable gases that provide most of the heat requirements for
the process (up to 75% on our current plant energy requirements) and thirdly,
char which can be used in a number of applications. Our focus on char
applications is a further step in determining the incremental value of the
output of our process. There are clear valuation models that can be applied to
the quality of char produced. The Company's program in the next quarter aims
at establishing a base line value and potential revenue generation from this
product."

    DynaMotive is an energy systems company that is focused in the
development of innovative energy solutions based on its patented pyrolysis
system. Through the application of its technology and know how, the Company
intends to tap into abundant organic resources that are generally discarded by
the agricultural and forest industries at a cost and convert them into biomass
conversion raw materials. Examples include forestry residues, wood bark
agricultural residues such as sugar cane bagasse. The Company has successfully
converted each of these residues into BioOil and char making them a renewable
and environmentally friendly oil and char reserve that is available world-
wide.
    To provide competitively priced renewable energy solutions, the Company
has entered into cooperation agreements with leading engineering and turbine
manufacturing firms. Through these agreements, the Company has gained the
capacity to provide innovative integrated Waste-to-Power and Heat solutions to
residue intensive industries, remote from electricity grid locations and
economies that are heavily reliant on fuel imports. The Company plans to start
construction of its first integrated power project in 2001 and expects to
generate its first revenues from power in 2002.

    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.