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DynaMotive Announces Completion of US $1.5M Private Placement

26 February 1999

DynaMotive Technologies Announces Completion of US $1.5 Million Private Placement

    VANCOUVER, B.C., Feb. 26 -- DynaMotive Technologies
Corporation announced today that it has closed a
US $1.5 million private placement subscribed mainly by existing shareholders.
Proceeds from this placement will be allocated to working capital and to fund
the cash portion of the previously announced settlement with CD holders.
    Commenting on the private placement, DynaMotive's President and CEO Bayne
Boyes said, "These funds will permit the Company to meet its settlement
obligations with CD holders and provide working capital to commercialize the
Company's BioOil production technology.  DynaMotive is fortunate to have such
a strong and committed base of shareholders who believe in the Company and
share its long term vision and business strategy."
    DynaMotive develops and commercializes technologies that improve
industrial efficiency and solve major environmental problems.  The Company is
structured into two strategic business units.  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 patented ultrasonic and
electrolytic cleaning systems to the wire manufacturing industry.  The
DynaPower technology produces exceptional wire 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
eight 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.