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DynaMotive Technologies Corporation announces 1998 financial results

19 April 1999

DynaMotive Technologies Corporation announces 1998 financial results

    VANCOUVER, April 16 /CNW-PRN/ - DynaMotive Technologies Corporation
today announced audited financial results for the year ended
December 31, 1998. The Company reported revenues of $1,620,927 for the year, a
14% increase in revenues of $1,424,752, for the year ended December 31, 1997.
The net loss for 1998 was $2,905,651, or $0.22 per share on 13,062,309
weighted average common shares outstanding, compared to a loss of $2,203,337,
or $0.20 per share on 10,824,758 weighted average common shares outstanding
for the same period in 1997. Figures are in U.S. dollars and reflect Canadian
GAAP standards.
    Commenting on the company's performance for the year, Bayne Boyes,
President and CEO, said, ``1998 was a year of transition at DynaMotive. Over
the past year, we strengthened our management team and restructured our
operations into separate BioOil and DynaPower Business Units. These actions
were taken to strategically focus the Company on two key objectives: (1)
scaling up BioOil fuel production capacity to establish DynaMotive as a world
leader in this renewable energy sector, and (2) generating increased revenue
from sales of DynaPower metal cleaning systems by expanding its market
penetration into high-value, niche wire cleaning applications.
    ``The changes the Company has made has positioned it to systematically
achieve both objectives. DynaPower continues to gain market acceptance in the
wire cleaning industry with sales to a number of sentinel customers in the US,
Canada and Europe. Each of these sales represents entry into new geographic
markets and industrial cleaning applications.
    ``Production and scale up of our proprietary BioOil technology will be
the primary focus of the Company in 1999,.'' Boyes said. ``We began shipping
BioOil to potential customers in Europe and North America in late 1998 and
have initiated BioOil fuel testing programs with a number of diesel engine and
gas turbine manufacturers. In 1999, we will focus our resources on
demonstrating BioOil fuels in the power generation market and establishing
strategic alliances with engine manufacturers, biomass suppliers and energy
companies. We continue to work with our previously announced partners
including Stone & Webster Engineering and one of Brazil's largest sugar and
ethanol producers. Moreover, we expect to fully maximize the pledged
contributions of $7.5 million from Canadian, US and European Union government
agencies that are supporting our BioOil commercialization program.''

    CORPORATE PROFILE
    DynaMotive Technologies Corporation is an advanced technology company
that develops and commercializes environmentally friendly industrial
technologies. The BioOil Business Unit is positioned to become the world
leader in BioOil - the cheapest, cleanest liquid alternative to replace fossil
fuel for ``green'' power generation. Produced from renewable forest and
agricultural wastes, BioOil is an ideal clean fuel to generate power in
stationary diesels and gas turbines. Europe is our initial target market
followed by sugar producing countries in Latin America and Asia. DynaPower
acid free metal cleaning systems are used in the wire manufacturing industry
to provide exceptional wire cleanliness at high speeds while eliminating
acids, caustics and solvents traditionally used by the wire industry. A total
of 15 systems have now been sold to industrial customers 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.