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DynaMotive Confirms BioOil Shipments to Engine Manufacturers

9 February 1999

DynaMotive Confirms BioOil Shipments to Engine Manufacturers as the BioOil Business Unit Announces Strategy to Produce Fuels for 'Green' Power Generation

    VANCOUVER, British Columbia, Feb. 9 -- DynaMotive
Technologies Corporation announced today that it has begun
shipping BioOil to engine manufacturers and energy companies in Europe and
North America.  The Company's BioOil Business Unit is positioning to become
the world leader in the production of BioOil fuels for "green" power
generation, and has recently increased production capacity at its BioOil pilot
plant in Vancouver to meet market demand.
    "Global demand to accelerate clean energy production, improve air quality
and reduce waste has created a powerful market for BioOil," said Jonathan
Rhone, Vice-President of Corporate Development.  "Our decision in mid-1998 to
upgrade our BioOil pilot plant to four times its original production capacity
has certainly paid off as demands for BioOil for commercial engine testing and
product R&D have grown tremendously.
    "Unlike fossil fuels, BioOil is renewable, clean burning, low in
emissions, greenhouse gas neutral and can be produced economically from waste
products," Rhone said.  "Demand for BioOil fuel is driven by high fossil fuel
taxes in many European countries and the need for low cost alternatives to
fossil fuel in developing countries.  We now have a commercialization strategy
in place to capitalize on international market opportunities for BioOil
fuels."  Key elements of this strategy are:

    -- Engine Testing for Packaged Power Systems -- The BioOil Business
       Unit has established BioOil fuel testing programs with a number of
       stationary diesel and gas turbine engine manufacturers in Europe and
       North America. Once tests are completed, DynaMotive will work with
       partners to market BioOil power generation systems in the under 20 MW
       stationary power market.

    -- Target Markets for BioOil "Green" Power -- The BioOil Unit is focusing
       on two priority markets for BioOil power generating systems.  The first
       is Europe where high fossil fuel taxes enable BioOil to compete with
       fossil fuel.  The second is developing countries and off-grid locations
       where higher electricity costs coupled with inexpensive feedstock make
       BioOil-fueled power generation attractive.

    -- Scale-Up to Larger Demonstration Plants -- The BioOil Business Unit is
       now poised to move to commercial demonstration of BioOil production,
       and plans to begin construction of a 25-50 ton per day (tpd) BioOil
       demonstration facility in Europe or North America within the next
       12 months.  This will be followed by scale-up to 200 tpd facilities in
       2001 and a subsequent rollout program that will result in commissioning
       of over 70 BioOil plants within the next ten years.

    DynaMotive's BioOil Business Unit is commercializing a unique,
waste-to-energy technology that converts low value forest waste and
agricultural by-products into liquid BioOil.  BioOil can be used as a clean
burning fuel substitute for fossil fuels to generate "green" power in
stationary diesel generators and gas turbines.  BioOil is also a unique source
of organic chemicals and can be used as the raw material to manufacture a
pipeline of derivative products including slow release fertilizers and other
agro-products, air pollution control additives and specialty chemicals.

    Forward Looking Statement
    Statements in this news release concerning the company's business outlook
or future economic performance; anticipated profitability, revenues, expenses,
or other financial items; and statements concerning assumptions made or
expectations as to any future events, conditions, performance or other
matters, are "forward-looking statements" as that term is defined under the
Federal Securities Laws.
    Forward-looking statements are subject to risks, uncertainties and other
factors which could cause actual results to differ materially from those
stored in such statements.  Such risks, uncertainties and factors include, but
are not limited to, changes and delays in product development plans and
schedules, customer acceptance of new products, changes in pricing or other
actions by competitors, patents owned by the Company and its competitors, and
general economic conditions, as well as other risks detailed in the Company's
filings with the Securities and Exchange Commission.