Sonex Awarded Contract to Demonstrate Conversion

8 October 1999

Sonex Awarded Contract to Demonstrate Conversion of High Performance Marine Gasoline Engine to Heavy Fuel Use

    ANNAPOLIS, Md.--October 7, 1999--SONEX RESEARCH, INC. (OTC Bulletin Board Symbol "SONX") announced that it has been awarded a sub-contract by Innovation Marine Corp. of Sarasota, Florida, to use its best efforts to convert an existing high performance gasoline fueled propulsion system for marine use to start and operate on heavy fuels. Sonex said this cost-plus fixed fee sub-contract is expected to be worth in excess of $300,000 over a six-month period.
    The Company reports that many users of various types of gasoline engines are interested in converting these engines to operate on less volatile diesel-type fuels referred to as "heavy fuels". The patented Sonex Combustion System (SCS) starting system and modified engine design for spark-ignited (SI) diesel fueled piston engines has been applied previously to the conversion of small, lightweight, two-cycle, SI gasoline engines to start and operate on heavy fuels for remotely piloted Unmanned Aerial Vehicles.
    Sonex will utilize its own laboratory single cylinder engine to establish the feasibility of the SCS 4-stroke heavy fuel combustion system. A sequence of tasks will accomplish analyses, engineering and design to provide recommendations for changes to the current gasoline engine to achieve the heavy fuel conversion as proven in the single cylinder Sonex feasibility demonstrator. A rationalized design process will establish a transition path for a decision on a technology demonstrator and/or conversion prototype.
    According to the Company, successful conclusion of this feasibility demonstration, the submission of an engineering plan, and a critical design review could lead to follow-on projects for prototype conversion, design enhancements, and installation and operational assessment.
    Sonex was not in a position at this time to disclose further details about the current gasoline engine, such as its uses and performance characteristics, due to contractual restrictions.
    Sonex Research, Inc., a leader in the field of combustion technology, has its ULTRA CLEAN BURN(TM) technology protected by numerous patents issued and pending worldwide. The Company is pursuing licensing agreements for the marketing, manufacture and sale of diesel truck engine pistons incorporating its patented technology for the reduction of emissions in vehicular direct injected turbocharged diesel engines, and has conducted demonstration and development programs with some of the world's largest diesel engine manufacturers. Other SCS designs are being used to convert small two-cycle gasoline engines to heavy fuel use for military and commercial applications.

Caution Regarding Forward-Looking Statements

This announcement may contain information in the form of "forward-looking" statements within the meaning of the Private Securities Litigation Act of 1995 (the "Act"). In order to obtain the benefits of the "safe harbor" provisions of the Act for any such forward-looking statements, the Company wishes to caution investors and prospective investors about significant factors which, among other things, have in some cases affected the Company's actual results and are in the future likely to affect the Company's actual results and cause them to differ materially from those expressed in any such forward-looking statements. Investors and prospective investors should read this announcement in conjunction with the Company's most recent Annual Report on Form 10-KSB and Quarterly Report on Form 10-QSB.

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