Compass Energy Adds Horsepower With New Investment

    ATHENS, Ga.--Aug. 22, 2001--Compass Energy Corporation (OTC:CECP) announced today through its operating subsidiary, Independent Southern, Inc. it has purchased a 50% equity ownership in Southeastern Horsepower, Inc. (SHI), a builder of customized, specialty Ford Mustang engines. Independent Southern is to supply SHI with its high performance fuels, oils, and lubricants as well as other related products. It is anticipated that this new relationship should add approximately $350,000 to revenue with 18% or $63,000 in net earnings.
    Compass Energy, founded in 1987 is headquartered in Athens, Georgia and operates three divisions, Retail Convenience Stores, Inc., Independent Southern, Inc., and Petroleum Products Southern Inc., which distributes, markets, and sells, fuel and other items through its fleet of trucks, convenience stores and recently purchased travel center. The company reported non-audited approximate gross revenues for fiscal year end 2000 of $2.75 million with approximate net earnings of $192,500. The company is projecting for fiscal year end 2001 approximate gross revenues of $7.5 million and approximate net earnings of $763,000.

    Certain statements contained in this release are forward looking. Although Compass Energy Corporation believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. Factors that could cause actual results to differ from expectations include general economic, business and market conditions, volatility of gasoline prices, merchandise margins, customer traffic, weather conditions, labor costs and the level of capital expenditures.