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DynaMotive Technologies Announces 1999 Second Quarter Results

18 August 1999

DynaMotive Technologies Announces 1999 Second Quarter Results and Completion of Corporate Consolidation Process

    VANCOUVER, British Columbia, Aug. 18 -- DynaMotive
Technologies Corporation (OTC Bulletin Board: DYMTF) today released its 1999
second quarter financial results and announced completion of its corporate
consolidation process.  Revenues for the three months ended June 30, 1999 were
$185,526 while the same quarter for 1998 generated $386,437.  The net loss for
the second quarter of 1999 was $872,596, or $0.04 per share on 23,951,889
weighted average common shares outstanding as compared to $906,257, or
$0.07 per share on 12,285,088 weighted average common shares outstanding for
the same period in 1998.  Revenues for the six months ended June 30, 1999 were
$435,528 compared with $523,520 for the same period in 1998.  Figures are in
U.S. dollars and reflect Canadian GAAP standards.
    Commenting on the Company's second quarter and six month financial
results, President and CEO Andrew Kingston said, "Over the past six months,
DynaMotive has undergone a restructuring and consolidation process that has
resulted in a reduction of operational costs and improved allocation of
resources.  One time costs related to this reorganization totalled $280,000
and included severance packages and legal and other professional fees incurred
in settlement of the convertible debenture issue.  These costs have been fully
applied to the first half of the year and no further costs related to the
reorganization are expected.
    "The Company's decision to outsource manufacturing for our DynaPower wire
cleaning systems has enabled the DynaPower Business Unit to reduce staff from
fifteen full time employees in January 1999 to eight staff today.
Restructuring of the unit resulted in a temporary slow down in DynaPower sales
and a subsequent reduction in revenues for the quarter.  However, we expect
sales to increase in the third and fourth quarter, and believe that the
DynaPower Business Unit will be profitable for the first time this year.
Concurrently, as the Company gears up for construction of larger scale BioOil
production plants in its key markets, we have added to the professional
capabilities in our BioOil Business Unit, increasing staff from five to
ten full time employees.
    "The Company is now positioned to expand its BioOil operations in North
America and Europe and also increase productivity and margins in the DynaPower
unit," Kingston said.  "The Company intends to establish DynaPower as a wholly
owned subsidiary by the end of the year."

    DynaMotive Technology Corporation develops and markets environmental
technologies that provide clean, competitive alternatives to traditional
industrial processes.  The Company is structured into two strategic business
units.  The BioOil Business Unit is commercializing a renewable energy
technology that converts low value forest and agricultural waste into liquid
BioOil.  BioOil can be used as a clean burning liquid fuel substitute to
fossil fuels to generate "green" power in stationary diesel engines and gas
turbines.  BioOil can also be used as the raw material for a range of
derivative products including fertilizers, air pollution control agents and
special chemicals.  The Company's DynaPower Business Unit produces industrial
metal cleaning systems that eliminate the need for toxic chemicals
traditionally used by the wire manufacturing industry to clean their products.
DynaPower 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.