Enerphaze Corporation Announces Management Restructuring

    SPOKANE, Wash.--May 7, 2002--Enerphaze's (Pink Sheets:EPHZ) Board of Directors is pleased to announce that it has restructured its management team.
    Brian DeNike has been appointed Chief Executive Officer. Doug Burchak has been named the Company's President and Chief Operating Officer. Dr. Paul Vose has been appointed the Company's Chief Technical Officer. Jeff Wordell has been named Vice President of Operations.
    "As the Company moves forward with its growth plan, the restructuring will place key members of the management team in positions that best reflect their skill sets," commented Brian DeNike.

    About Enerphaze

    Enerphaze Corporation is in the business of licensing its DURAPHAZE(TM) Technology to companies in the automotive, diesel engine, aerospace, and bearing manufacturers. The Company's technology significantly improves overall product performance, while providing significant cost savings.
    DURAPHAZE(TM) Technology represents a departure from current manufacturing processes that simply coat a metal surface and cause significant environmental problems. DURAPHAZE(TM) is not a coating or plating process. With DURAPHAZE(TM) the metal's surface is altered at the molecular level to achieve a permanent change that reduces wear, reduces friction and resists corrosion. By creating a new surface "in the metal" (not just a coating on the surface), our DURAPHAZE(TM) surface cannot flake, crack, chip, peel, delaminate or otherwise separate from the metal substrate. Enerphaze products are environmentally safe and require no dangerous chemicals as other plating.

    Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release which are not historical facts are "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example, the competitive environment in which Enerphaze Corporation operates; the unpredictability of Enerphaze Corporation's future revenues, expenses, cash flows, and stock price; international market and economic conditions, the loss of key personnel, changes in applicable governmental regulations and the effectiveness of our technology. The forward-looking statements are included herein are made as of the date of this press release, and Enerphaze Corporation assumes no obligation to update the forward-looking statements after the date hereof.