---

Hawks Industries Announces Merger With Blue Star Sustainable Technologies Corporation

8 August 2000

Hawks Industries Announces Merger With Blue Star Sustainable Technologies Corporation

    CASPER, Wyo. - Hawks Industries today announced that it has been advised 
that the purchasers whose acquisition of control of Hawks was approved at the 
Hawks stockholders meeting on July 26, 2000 intend to cause Hawks to merge with 
Blue Star Sustainable Technologies Corporation immediately after the closing of 
the transaction approved at the meeting.

    The merged company will combine access to the gas producing properties
currently owned by Hawks with utilization of new, environmentally friendly
energy production (fuel cell) technology developed by Blue Star.  The merged
company will continue to focus on energy (fuel cell) production and technology
and will continue the commercialization process.

    Previously, Hawks and Blue Star agreed to joint venture in the commercial
development of new technology that converts natural gas to liquid fuel with
cogeneration of electricity and drinkable water.  Such a process will have
beneficial utility in the economic development of natural gas reserves that
now are stranded from marketing opportunities.

    The combined company will be headed by Dr. Nicholas Vanderborgh, who the
purchasers have stated they intend to designate as president of Hawks and who
is already the president of Blue Star.  The combined company will be
headquartered in Arvada, Colorado where Blue Star presently maintains its
office and laboratory facilities.  Rick J. Turturro will be the Chief
Financial Officer of the merged company.

    Hawks is headquartered in Casper, Wyoming and is traded on the Nasdaq
SmallCap Market under the symbol "Hawk."