DynaMotive Announces Board, Management Changes And Restructuring of Operations in Europe Following Rotch Ltd. Agreement

    VANCOUVER, British Columbia--Aug. 6, 2002-- DynaMotive Energy Systems Corporation (OTCBB:DYMTF) announced today that a streamlined Board of Directors has made certain senior management changes and is completing a restructuring of operations in Europe following Company's recently announced memorandum of understanding with Rotch Limited.

    Board Changes:

    Mr. Marvin Josif of Rotch Ltd. has been appointed to the board of DynaMotive, and has assumed the office of Chief Financial Officer (interim). Mr. Josif brings proven experience in capital markets and in corporate development activities and as a Rotch representative, will also oversee together with Andrew Kingston -- President & CEO -- the implementation of the Rotch MOU, including the planned $ 5,000,000 equity placement.
    Mr. Bayne Boyes, Mr. Ricardo Altube and Dr. Desmond Radlein are stepping down from DynaMotive's board. Dr. Radlein has been appointed Chairman of DynaMotive's Technical Advisory Committee and Mr. Altube will remain as a member of this committee.
    Through the implementation of these changes, DynaMotive's Board has been reduced to seven members which represent several of the Company's constituencies, including investor groups, geographic areas and financial and technical disciplines that will allow for effective corporate oversight.

    The Board is now comprised of the following members:

    Mr. Richard Lin -- Chairman,

    Mr. Andrew Kingston -- President & CEO

    Mr. Marvin Josif -- Chief Financial Officer (interim)

    Dr. Curtin Winsor, Jr. -- Independent Director

    Dr. Michael McDowell -- Independent Director

    Mr. Shing-Cheng Hong -- Independent Director

    Mr. Chih-Lin Chu -- Independent Director.

    Senior Management:

    At the executive management level, Mr. Rodolfo Guido continues as COO and Mr. Warren Johnson as CTO.

    European Operations:

    DynaMotive and Rotch are finalising restructuring of operations in Europe and expect the Company to benefit from reduced operational costs while enhancing technical capabilities. As part of this process, new management has been appointed for the Company's Border Biofuels subsidiary, with Mr. Andrew Kingston appointed as the sole Director and Mr. Gabriel Dadoun of Rotch appointed as Corporate Secretary. Rotch and DynaMotive are working towards ensuring that full operational capabilities are in place within the month of August.
    Commenting on the latest changes, Mr. Richard Lin, Chairman of DynaMotive said: "The changes will provide renewed impetus for the Company which will benefit from a dynamic and multifaceted board, providing the direction and skills critical to our success. In the past year, we streamlined our management structure and focussed our operations through the divestiture of our metal cleaning division. The Board recognized that a more compact board would better meet the Company's needs. On behalf of the Board, I would like to extend my special thanks to Messrs. Boyes, Altube and Dr. Radlein who have served DynaMotive in an exemplary manner. I would also like to welcome Mr. Josif to DynaMotive's Board."
    DynaMotive's patented fast pyrolysis system (BioTherm(TM)) converts biomass to fuel oil and fuel-grade char. 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 economically convert them into a renewable and environmentally friendly fuel. Biomass examples include forestry residues such as wood and bark, and agricultural residues such as sugar cane bagasse and corn stover. DynaMotive has successfully converted each of these residues, which are available worldwide, into BioOil and char making them a renewable and environmentally friendly oil and char reserve.

    For further information on Rotch, please go to www.Rotch.com

    For more information on DynaMotive, please call:

    Corporate Communications Tel: 604/267-6000 Toll Free (in North America): 877/863-2268
    Fax: 604/267-6005 Email: investor@DynaMotive.com Website: www.DynaMotive.com

    Forward Looking Statement

    Certain statements contained in this news release, which are not based on historical facts, are forward looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995, and are subject to uncertainties and risks in part detailed in the company's filings with the Securities and Exchange Commission, that may cause actual results to materially differ from projections. Although DynaMotive believes its expectations are reasonable assumptions within the bounds of its knowledge of its businesses and operations; there can be no assurance that actual results will not differ materially from their expectations. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the company's ability to continue as a going concern; the fact that the company has not achieved positive cash flows; volatility of the company's stock and price; the ability to raise funds for working capital; access to borrowed or equity capital on favorable terms and financing. In light of these risks and uncertainty, there can be no assurance that the forward-looking information contained in this report will, in fact, occur.