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Mandalay Capital Corp. Negotiatates to Acquire Zero Pollution Device

15 December 1998

Mandalay Capital Corp. Announces Negotiations to Acquire Zero Pollution Device

    NEW YORK, Dec. 15 -- Mandalay Capital Corp.
(OTC Bulletin Board: MNLY) today announced that it has begun negotiations to
purchase the world wide exclusive manufacturing, marketing and distribution
rights for the Zero Pollution Device, an attachment that when fitted to an
internal combustion engine reduces the exhaust gas emissions to almost zero.
"This remarkable invention will significantly reduce and possibly eliminate
dangerous gases, smog and pollution levels in every major city on the planet,"
stated the newly appointed Chairman and CEO, Mr. Jeffrey Muller.
    The technology, invented and developed by renowned inventor and artist,
Mr. Pro Hart, has undergone over 5 years of extensive testing and refinement
and when fitted to a motor vehicle reduces exhaust Carbon Monoxide levels by
as much as 3,000% with increased fuel consumption and performance, due to the
higher fuel burn efficiency in the combustion chamber.
    The Company has obtained an exclusive right to negotiate the acquisition
and is planning to complete the acquisition by the New Year.
    Further details will be made available to shareholders as the acquisition
progresses.