Polar Molecular and Biorelease Comment On US EPA Announcement

27 March 2000

Polar Molecular Corporation and Biorelease Corp. --OTCBB:BRLZ-- Comment On the Impact of the Recent US EPA Announcement to Phase Out MTBE From Gasoline

    MANCHESTER, N.H.--March 27, 2000--BIORELEASE CORP. (OTCBB:BRLZ) announced previously its intent to merge with Denver based Polar Molecular Corporation, such merger expected to become effective upon approval by both companies' shareholders sometime before mid year. Polar Molecular's primary product, DurAlt(R) FC, is a fuel additive which enhances fuel combustion efficiency and reduces octane requirement increase ("ORI") and thereby enables gasoline engines to run properly on lower octane fuel that has been treated with DurAlt(R) FC. The Wall Street Journal on Tuesday, March 21, reported that the Clinton administration is seeking congressional approval to phase out use of the fuel additive MTBE (methyl tertiary butyl ether) and encourage the wider use of ethanol in gasoline. Dr. Chandra Prakash, VP Environmental & Vehicle/Fuel Regulation for Polar Molecular Corporation and former Head of Transportation Fuels, Environment Canada (Federal Department of Environment in Canada), commented today on the impact this phase out of MTBE would have on the prospects for DurAlt(R) FC.
    "When MTBE is phased out in the US, it will create an "octane pool" shortage for oil refiners. Thus refiners will have to do something to replace the lost octane. The mandatory oxygen requirement in reformulated gasoline may not be necessary in the future, since EPA has also already recommended the US Congress remove this mandate. The petroleum industry in the US is supportive of this move as it provides flexibility to the refiners to alter gasoline composition while meeting emission and performance requirements.
    The "octane pool" deficit can be made up by either boosting octane through the use of other high-octane components or by reducing the octane appetite of the engine. Using increased volumes of higher-octane hydrocarbon components in gasoline is costly and may contribute to harmful vehicle emissions. Also, most octane boosting additives can no longer be used in gasoline by law since they contain heavy metals. Ethanol can be used in gasoline to raise octane number; however, it is not preferred by most refiners due to its limited supply, high cost and phase separation problems when shipping through pipelines. Thus one and possibly the best option is to use additive technology such as DurAlt(R) FC that fills the octane gap by reducing the octane requirement increase ("ORI") of the engine, making regular gasoline perform like mid-grade or premium fuel."

    Mark Nelson, President of Polar Molecular, stated,

    "We believe the MTBE phase out opens the possibility for an historic rethinking of the approach to octane performance. The industry has known for some time that additive technologies exist that effectively reduce octane requirement in engines. Technologies such as our DurAlt(R) FC could be an innovative solution to the "octane pool" shortage created by MTBE phase out.
    If DurAlt(R) were used industry-wide, other benefits would accrue in addition to satisfying the octane requirement. Automobile manufacturers currently are forced to retard engine performance because of the octane requirement increase ("ORI") phenomenon. Widespread use of DurAlt(R) would provide substantial reduction in ORI and enable manufacturers to optimize their engines for more efficient operation. Large-scale use of DurAlt(R) in the MTBE phase out scenario would also enable oil companies to sell more gasoline while reducing their cost. DurAlt(R) can be added to gasoline at refineries at much lower cost than other additives and no process changes in the refineries would be required.
    In addition, use of DurAlt(R) creates no potential environmental concerns because it is used at an extremely low concentration (under 200 parts per million in gasoline) and does not contribute to harmful emissions. DurAlt(R) also improves vehicle fuel economy, thereby reducing greenhouse gas emissions. This would result in improvement to corporate average fuel economy ("CAFE"). DurAlt(R) has been designated as "substantially similar" by the US EPA and is approved for the bulk treatment of gasoline. Major independent laboratories, engine manufacturers, and major oil companies have verified its performance claims. DurAlt(R) also meets the gasoline and diesel fuel specifications that have been recommended by all vehicle manufacturers in the world in their "World-Wide Fuel Charter."

    BIORELEASE CORP. is a fully reporting publicly traded company whose common stock is traded over-the-counter on the Electronic Bulletin Board (OTCBB) under the symbol "BRLZ".