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Rotary Power International, Inc. Successful In Converting $5,400,000 of Debt Into Equity

8 January 2001

Rotary Power International, Inc. Successful In Converting $5,400,000 of Debt Into Equity

    WOOD-RIDGE, N.J., Jan. 8 Rotary Power International, Inc.
(the "Company" or "RPI") (OTC Bulletin Board: RPIN) is pleased to announce
that the Company has secured agreements to convert approximately $5,400,000 of
its debt into equity.  This accomplishment will greatly facilitate the
Company's ongoing financing.
    The bondholders of more than 97% of the Company's outstanding 10.412%
Bonds due December 15, 2007 have formally accepted RPI's offer to exchange the
principal of and all accrued interest on the Bonds through January 31, 2001 at
the rate of $2.00 per share for common stock.  As of January 31, 2001, the
principal and accrued interest on the Bonds will aggregate approximately
$4,978,000.  The transaction is scheduled to close on January 31, 2001.  The
Company anticipates the remaining holders of the Bonds will agree to the
exchange prior to the closing.  The common stock to be issued to the holders
of the Bonds will be "restricted securities" for purposes of the Securities
Act of 1933 and the holders have agreed not to publicly offer or sell those
shares before January 31, 2003 without the prior written consent of the
Company.
    Additionally, RPI has settled a $500,000 debt to Abejon Rotary Power
Corporation through a $25,000 cash payment, a $75,000 8% promissory note and
the issuance of 200,000 shares of common stock.  The common shares issued in
this settlement are also "restricted securities" for purposes of the
Securities Act of 1933.
    Virgil Wenger, Chairman of the Board of Directors of RPI, stated, "We have
been working diligently on the operational and financial restructuring of the
Company.  The conversion of $5,400,000 of debt to equity at a deemed value of
$2.00 per common share eliminates over 50% of the Company's liabilities, and
is an expression of confidence by the debtholders in the Company's progress
toward the manufacturing and marketing of its liquid and gaseous fueled rotary
engines."
    RPI is internationally recognized as the leader in the field of heavy
fueled rotary engines especially the Stratified Charge Omnivorous Rotary
Engines (SCORE (TM)).

    For Further Information on RPI Visit our Web Sites at:
    http://www.rotarypowerinternational.com

    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.
    This press release contains "forward-looking statements" based on current
expectations, forecasts and assumptions that involve risks and uncertainties
that could cause actual outcomes and results to differ materially.  These
risks and uncertainties include price and product competition, dependence on
new product development, reliance on major customers, customer demand for our
products, control of costs and expenses, general industry conditions and
interest rate and currency exchange rate fluctuations.  For a further list and
description of such risks and uncertainties, see the reports filed by RPI with
the Securities and Exchange Commission.  RPI disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.