Scuderi Split-Cycle Engine Secures Patent Protection in Key Global Markets; Comprehensive Patent Portfolio Attracts Investors and Licensees

WEST SPRINGFIELD, Mass.--June 27, 2006--The Scuderi Group has secured patent protection for its revolutionary Split-Cycle Engine in key global markets including Japan, Taiwan, China, and Russia, the company announced today. The patents are a major step toward complete worldwide protection of the revolutionary Scuderi air-hybrid engine design.

The Scuderi patent portfolio now includes seven issued U.S. patents, five U.S. patents pending, and multiple international patents pending in over 45 countries.

"Scuderi's global patent portfolio provides protection for our investors and will enable licensees to establish dominate market positions for the next 15-20 years," said patent attorney Stephen Scuderi, legal counsel for The Scuderi Group. "Because the split-cycle engine technology can be applied to a wide variety of applications, from automobiles to airplanes to generators, we are determined to protect our intellectual property on a global basis."

A Podcast interview with Stephen Scuderi on the significance of the patent portfolio is available at The Scuderi Group's blog, AirHybridBlog.com.

The design and performance of the Scuderi split-cycle engine - potentially the world's most efficient internal combustion engine - has been verified by one of the world's leading research laboratories, and the company was recently awarded a $1.2 million engine development grant by the U.S. Department of Defense. This patented design represents one of the most significant breakthroughs for internal combustion engines to come along in decades, an advance that takes on added significance given rising fuel prices and growing environmental concerns.

Developed by a team of fluid mechanic and thermodynamic experts, the Scuderi split-cycle engine is expected to deliver a significant improvement in performance, efficiency and environmental impact. The Scuderi Group accomplished these advances by focusing on the fluid and thermodynamics at the heart of the engine, challenging conventional approaches to engine design in place for over 120 years.

As a result of this breakthrough design, the Scuderi engine is expected to:

-- Improve fuel efficiency in today's gas and diesel engines by almost one third

-- Emit 80 percent less toxic emissions than today's gas and diesel engines

-- Enhance the performance of hybrid engines

-- Provide significantly more power than a conventional engine

-- Be easy to manufacture because it utilizes the same components found in today's engines

Unlike conventional engines, the Scuderi engine divides the four strokes of a standard engine (intake, compression, power, and exhaust) over a paired combination of one compression cylinder and one power cylinder. These two cylinders perform their respective functions once per crankshaft revolution, while conventional engines require two revolutions of the crankshaft to perform these same functions.

Scuderi Air-Hybrid Engine

By adding a small air storage tank with some simple controls costing only a few hundred dollars, the Scuderi engine can recapture energy normally lost during the braking of a vehicle. To accomplish this with electric hybrids requires a complex electrical system, costing thousands of dollars, consisting of generators, motors, and large batteries. In addition, unlike electric hybrids, the Scuderi Air-Hybrid has the unique capability of recapturing energy from the exhaust of the engine, making it possible to utilize a Scuderi Air-Hybrid design in stationary applications such as electric generators - an application where electric hybrids are considered impractical.

Currently under development, the first diesel and gasoline prototypes are expected to be completed in 2007.

About The Scuderi Group.

Based in West Springfield, Mass., The Scuderi Group is an engine development company focused on improving the performance of the internal combustion engine. The revolutionary Scuderi Engine Technology is the most significant improvement in engine performance in decades and can be applied to any internal combustion engine including gasoline, diesel, bio-diesel, and natural gas. The Scuderi Engine, along with its Air-Hybrid feature, is expected to almost double vehicle mileage and reduces toxic emissions by as much as 80 percent. Besides improving efficiency and reducing emissions, the Scuderi Air-Hybrid Technology also improves power and performance at a cost that is thousands of dollars below the current hybrid systems. The Scuderi Technology is patented worldwide with six patents issued and several pending in over 45 countries. For more information call 413-439-0343 or visit on the Web at www.scuderigroup.com.