Rotary Power International Inc Announces Acquisition and Other Material Events

    WOOD-RIDGE, N.J.--March 5, 2003--Virgil Wenger, Chairman of Rotary Power International, Inc. (RPI) announced today the acquisition of a 51% stake in Envirotech Rotary Power, Inc, (ERP) a Florida based rotary engine company.
    The purchase calls for RPI to pay $450,000 dollars to ERP in the form of a Promissory Note at 5% per annum. Payments will derive from 20% of future RPI funding and sales with no other timed payments or penalties according to a prescribed formula outlined in the contract.
    According to Larry Cooper, ERP President and CEO, "we have been developing a single rotor multi-fueled engine since March of 2000. We currently have 4 engines in field use under different applications as part of our final stages of pre-production testing. We believe that joining with RPI at this stage of our company's development will open many doors to future sales and marketing or licensing agreements for our engine".

    Other Material Events

    Mr. Ronald McKeown has resigned as Director, President and Chief Executive Officer and Mr. Douglas M Drew has resigned as Director, Vice President, Finance, Corporate Secretary and Treasurer of RPI and its subsidiary companies.
    To fill these vacancies, the Board of Directors of RPI has appointed Mr. Larry Cooper to the position of Director, President and Chief Executive Officer and Ms. Shirley M Harmon, to the position of Director, Corporate Secretary and Treasurer.
    Mr. Cooper, prior to serving as President & CEO of ERP since the company's inception in March of 2000, was President of Eco-Max Systems, Inc.; a Florida based small engine research and development company. After his military service as a helicopter pilot in Viet Nam, Mr. Cooper formed Cooper Constructions Company, builder and general contractor of residential, commercial and industrial projects, which he ran from 1973 until 1998. Mr. Cooper will receive compensation at the rate of $3,000 per month for the next 3 months at which time a formal employment contract is contemplated.
    Ms. Harmon retired from the US Department of Defense with 28 years in finance management. Prior to retiring, she was responsible for overseeing payroll for 7,000 civilian employees worldwide with the Department of Navy. Ms. Harmon will serve as an Independent Director without compensation except for verifiable expenses.
    Mr. Wenger also announced that Demetrius & Company LLC, Certified Public Accountants has ceased its relationship as RPI accountant and auditor. Mr. Wenger stated that this is an unfortunate but understandable event and we hope to work towards regaining this important relationship in the future.

    Safe Harbor Statement

    This press release contains "forward-looking statements" based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include price and product competition, dependence on new product development, RPI's ability to obtain sufficient funding to be successful, reliance on major customers, customer demand for our products, control of costs and expenses, general industry conditions and interest rate and currency exchange rate fluctuations. For a further list and description of such risks and uncertainties, see the public filings made by RPI with the Securities and Exchange Commission. RPI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.