Rotary Engine Selected for Paving Machines

    WOOD-RIDGE, N.J., Nov. 1 Conway Davis, President and CEO of Rotary Power 
International, Inc., and Ian Rumeo, President and CEO of Road Runner Equipment 
Repair, jointly announce the signing of a Letter of Intent under which RPI 
has agreed to supply and RRE has agreed to purchase up to 50 (fifty) 70 
Series 1 rotor diesel fueled rotary engines for installation in RRE's mid-size 
asphalt paving machines.
    
    RRE is a full service company for asphalt paving equipment including all
repairs and major rebuilds.  RRE services approximately 75% of the asphalt
paving companies in the Greater Toronto Area.  RRE is located in King City,
Ontario, Canada.

    Mr. Rumeo stated that, "with my 15 years' experience in the asphalt
equipment business and understanding of industry requirements, the 70 Series
rotary engine is my choice of power plant since it's low noise, low vibration,
compact size and advantageous power to weight ratio will allow for paver
designs that increase ergonomics and functionality."

    Initially, RPI will deliver one development 70 Series rotary engine to RRE
for demonstration and testing.  After successful demonstration of RRE's
prototype paver with the 70 Series rotary engine, it is RRE's intention to
purchase up to 50 (fifty) rotary engines which would represent approximately
U.S. $600,000 in sales revenue for RPI in the following 18 to 24 months.  The
completion of the transactions contemplated by the Letter of Intent is subject
to the negotiation and execution of a definitive agreement between the parties
within 90 days.

    Mr. Davis commented that, "we are pleased to have developed a relationship
with RRE and it is an important step in our strategy to diversify our customer
base due to the versatility and advantages of our rotary engine over other
power sources."

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

    RPI's common shares are quoted on the Nasdaq Over-the-Counter Bulletin
Board under the symbol RPIN.

    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.