puraDYN U.K. Subsidiary Sells Bypass Oil Filtration Systems to Large European Generator Rental Company

EXETER, DEVON, United Kingdom--Aug. 3, 20041, 2004--puraDYN Filter Technologies Ltd. (AMEX:PFT), a wholly-owned subsidiary of puraDYN Filter Technologies Inc., has begun delivering bypass oil filtration systems to one of the largest generator set rental companies in Europe.

Following the successful conclusion in February, 2004 of an extensive testing program, engine oil change service intervals were increased four times longer than standard service intervals. As a result, the generator set rental company experienced significant maintenance cost savings as well as a payback period for the specific application of less than two months.

The generator set rental company currently has 3,000 generators in service and is expected to order approximately 75 puraDYN(R) systems monthly. It has already purchased 85 systems and hopes to retrofit approximately half of its generator sets by the end of 2005. Their 3,000 generator sets represent approximately just 1% of the total number of applicable generator sets in use in the European-Middle East marketplace.

In addition, the rental company has won a contract to supply a large British telecommunications power company's supply project with puraDYN(R)-equipped generators. To date this has resulted in the sale of an additional 85 puraDYN(R) systems with forecast sales of another 215 systems to be purchased by the end of November, 2004.

Kevin Davies, managing director of puraDYN Ltd., said, "These sales demonstrate the growing acceptance of puraDYN(R) bypass oil filtration systems throughout Europe and a genuine momentum in the market for our products. We are pleased that puraDYN is at the forefront of this technology, which will allow forward-looking companies the ability to offer the economic and environmental benefits created through the use of bypass oil filtration. Our systems ensure that the oil is maintained in a continuously cleaned condition, enabling companies to safely and significantly extend oil drain intervals. In effect, purchases of lubricating oil can be reduced by up to 90% with similar savings for the disposal of waste oil, as well as the lowering of downtime for increased productivity. The environmental benefits include conservation of oil and less chance of spillage because of decreased handling."

Davies continued, "For the past three years we have been supplying a major power generator manufacturer in the UK. That manufacturer's competitors are now beginning to realize that they, too, must consider the benefits of extending oil maintenance service intervals if they want to compete in the power supply market in Europe and the Middle East. The installation of the puraDYN(R) systems will help them to meet that challenge."

The puraDYN(R) bypass oil filtration systems work with the full flow filter to reduce solid contaminants in engine oil to below one micron with the use of its patent-pending CGP(R) filter element; to evaporate liquid and gaseous contaminants; and to replenish the base additives so as to maintain the proper total base number (TBN) and viscosity of the oil. By maintaining continuously clean oil, oil drain intervals are dramatically and safely extended, thereby reducing new oil purchases and waste oil disposal costs.

About puraDYN Filter Technologies Incorporated

puraDYN (AMEX:PFT) designs, manufactures and markets the puraDYN(R) Bypass Oil Filtration System, the most effective filtration product on the market today. It continuously cleans lubricating oil and maintains oil viscosity to safely and significantly extend oil change intervals and engine life. Effective for internal combustion engines, transmissions and hydraulic applications, the Company's patented and proprietary system is a cost-effective and energy-conscious solution operating in an annual $13 billion potential industry. The Company has established aftermarket programs with several of the transportation industry leaders such as Volvo Trucks NA, Mack Trucks, PACCAR; a strategic alliance with Honeywell Consumer Products Group, producers of FRAM(R) filtration products; and continues to market to major commercial fleets. puraDYN equipment has been certified as a "Pollution Prevention Technology" by the California Environmental Protection Agency.

Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the Company's control, including but not limited to the possible inability to raise capital funds, lack of protection from intellectual property, vulnerability because of manufacturing a limited number of products, dependence on distributors, orders previously stated in this press release may not materialize, and the possibility that the products do not meet customers' needs, which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the Company's periodic filings with the Securities and Exchange Commission.