ORYXE Energy International is Selected for a Technology Grant from the Texas Commission on Environmental Quality; Testing to Begin on ORYXE Energy Diesel Emission Reduction Additive

IRVINE, Calif.--Aug. 1, 20047, 2004--ORYXE Energy International announced today that the company has been selected for a grant from the Texas Commission on Environmental Quality (TCEQ) under their New Technology Research and Development Program.

The New Technology Research and Development Program is designed to promote the development and commercialization of technologies that will reduce greenhouse gases and ozone depletion.

The prestigious TCEQ grant will cover the costs of testing OR-D2, the company's organic, renewable and bio-degradable diesel emissions reduction additive. The test will measure the reductions of toxic emissions when the product is used to treat standard EPA diesel fuel. Once testing is complete, the company plans to distribute its technology via refineries and terminal sites strategically located in Texas nonattainment areas as a Texas Low Emission Diesel alternative.

"This is an exciting development not only for ORYXE Energy, but for the entire fuel refining industry," said Walter Schindler, Chairman of the Board and CEO of ORYXE Energy International. "We are excited about proving to the world that our diesel additive can reduce environmental pollution cost effectively and within the framework of the existing oil industry infrastructure."

Said Gregg Cooke, formerly the Regional Administrator of the U.S. Environmental Protection Agency Region 6, and an advisor to ORYXE, "This support from Texas will help ORYXE realize the promise of a cost-effective way to enable diesel fuel to burn cleaner and help clean up our air."

During his tenure at the EPA, Cooke was a strong advocate of harnessing new technology to improve air quality and reduce fuel emissions.

Testing will commence this month at the National Center for Alternative Fuels, Engines and Emissions at West Virginia University ("WVU") in Morgantown, West Virginia. WVU is a U.S. Environmental Protection Agency and California Air Resources Board recognized, and industry respected, emissions testing research laboratory that has conducted hundreds of research projects over the last 13 years. Preliminary tests conducted by WVU have shown the ORYXE additive to be effective at achieving across-the-board emissions reductions.

About ORYXE Energy

ORYXE Energy International, Inc., based in Irvine, Calif., develops, certifies, and distributes bio-additives that improve fuel performance and reduce toxic emissions from the combustion of hydrocarbons, such as diesel fuel and gasoline. The company develops and markets proprietary, organic fuel additives for diesel, gasoline, and heavy distillates to enable these fuels to burn cleaner, thus reducing toxic environmental emissions.

Odyssey Venture Partners (www.odysseyventure.com) of Newport Beach, Calif., is the lead venture capital investor in ORYXE Energy.

Forward-Looking Statements

Estimates, expectations, and business plans are forward-looking statements. Actual future results, including product introduction schedules, market receptiveness, regulatory approvals, and commercial viability, could differ materially due to changes in conditions affecting the industry, political, legal or regulatory developments, and market conditions.