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Rotary Engine: The Next Generation Power Source for Boats

10 October 2000

Rotary Engine to be Demonstrated in Safe Boats' Watercraft

    WOOD-RIDGE, N.J. - Conway Davis, President and CEO of Rotary Power 
International, Inc. and William Hansen, President and CEO of Safe Boats 
International, LLC., jointly announce the signing of a Letter of Intent under 
which Safe Boats will purchase RPI model 2013R 2 rotor 70 Series diesel fueled 
marinized rotary engines for the purpose of installing the engines in Safe Boat 
manufactured boats.

    RPI will initially manufacture and deliver three 2013R marinized rotary
engines to Safe Boats to demonstrate their performance in Safe Boats'
manufactured boats.

    The completion of the transactions contemplated by the letter of intent is
subject to the negotiation and execution of a definitive agreement between RPI
and Safe Boats.

    Mr. Hansen stated that, "Our boats have proven to be the overwhelming
choice of agencies such as the US Coast Guard, US Navy and other law
enforcement agencies for their fleets.  As a result, purchase orders for our
boats now exceed our current production schedule, and we expect that our
annual requirements for rotary engines will be at least 75 engines per year
valued at $1,500,000.  The twin RPI rotary engines combined with our high lift
hulls will propel Safe Boats' performance significantly ahead of its
competitors'.  The small size, low vibration, light weight to horsepower
diesel fueled rotary engine will ignite a new trend in boat manufacturing."

    Safe Boats is known world wide for its exclusive 11 foot to 50 foot long
foam stabilized hydrodynamic hulled watercraft.

    Mr. Davis commented that, "We are excited about our relationship with Safe
Boats and with the watercraft that will result from their patented foam
stabilized hulls powered by RPI's rotary engines which incorporate leading
edge technology including coatings and ceramic seals made available through
space age technology."

    RPI is internationally recognized as the leader in the field of heavy
fueled rotary engines especially the Stratified Charge Omnivorous Rotary
Engines (SCORE (TM)).

   In order to communicate company progress and improve information to
shareholders, RPI has retained Londonderry Capital Structuring Ltd. to provide
full spectrum investor relation services.