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DynaMotive Announces Settlement Agreement

17 February 1999

DynaMotive Announces Settlement Agreement With All Remaining CD Holders

    VANCOUVER, British Columbia, Feb. 17 -- DynaMotive
Technologies Corporation announced today that a settlement
agreement has been reached with all of the remaining holders of the Company's
outstanding convertible debentures.
    The agreement, which has been approved by the Company's Board of
Directors, includes a combination of cash payment and common shares which will
be subject to a controlled release from an escrow account. As a result of this
agreement, the Company will have completely repaid its obligations from the US
$3.8 million April, 1998 CD financing.  Furthermore, all legal actions brought
against the Company by the CD holders will be dropped.
    Commenting on the settlement, DynaMotive's Chairman, Richard Lin said,
"The Board is pleased that it has reached a settlement with the CD holders.
We look forward to putting this matter behind us and focusing our efforts on
continuing to make significant progress in both the BioOil and DynaPower
business units."
    DynaMotive Technologies Corporation develops and commercializes
technologies that improve industrial efficiency and solve major environmental
problems.  The BioOil Business Unit is commercializing a unique,
waste-to-energy technology that converts low value forest and agricultural
waste into liquid BioOil.  This clean burning liquid fuel can be used as a
substitute for fossil fuels to generate "green" power.  The initial focus
will be to package BioOil production technology with gas turbines and
stationary diesels in the under-20MW (megawatt) power market.
    The DynaPower Business Unit markets its proprietary ultrasonic and
electrolytic cleaning systems to the wire manufacturing industry.  The cost
effective technology produces exceptional surface cleanliness at high speeds
while totally eliminating the use of acids, caustics and solvents
traditionally used by the industry.  Commercial systems have now been sold in
seven countries.

    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.