Rotary Power International, Inc. to Develop a Revolutionary Diesel Outboard Engine

    WOOD-RIDGE, N.J.--Oct. 9, 2002--Rotary Power International, Inc. ("RPI") (OTCBB symbol: RPIN) and Rothor Advanced Power AS ("RAP"), a Norwegian based distributor of RPI's rotary marine engines, have signed a Letter of Intent for the development of a high performance diesel outboard and sport jet based on the RPI Series 70, two (2) - rotor, 250 HP diesel fueled marine rotary engine.
    Henry Gonzalez, RPI's COO stated, "the objective is to develop a revolutionary diesel outboard engine with comparable power, size and weight of the latest generation 4 - stroke petrol outboards. This project will be a joint venture between RPI, RAP and the Norwegian University of Science and Technology, in Trondheim. The project will commence with the development of a prototype outboard engine ready for demonstration in Autumn 2003. RPI and RAP have great expectations for this development project, as the market potential is considerable. Outboards based on RPI's Series 70, two (2) - rotor engine will target the market segment of large outboards."
    Thor Henning Olsen, President and CEO of RAP stated, "we are very pleased to have gained a Letter of Intent from RPI to develop diesel outboards. The RPI engine, Series 70 is probably the only diesel engine worldwide with such power to weight ratio that can be utilized in this manner. We believe the obvious reasons for having a diesel fueled driven outboard RPI engine are as follows, less flammable, better fuel consumption, wider rpm range, smaller size and lighter weight. The sales volume potential of outboard engines sold today in this segment is truly encouraging. Norwegians have a `reputation' to live up to since Ole Evinrude (Norwegian) made his first Evinrude outboard in 1909 and the Norwegians are excited about the project and the RPI engine in general. It's truly the technology of the future."

    RPI also announces the resignation of Peter B. Fransham as a director, effective September 10, 2002.

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