Rotary Power International, Inc. to Develop a Revolutionary Diesel Outboard Engine

The unique Horsepower to Weight characteristics of the Rotary Engine enable it to be considered for many more applications than the typical reciprocating engine.

PRESS RELEASE

ROTARY POWER INTERNATIONAL, INC.
One Passaic Street, P.O. Box 128
Wood-Ridge, NJ     07075-5595
OTCBB symbol: RPIN
www.rotarypowerinternational.com

FOR MORE INFORMATION CONTACT:
Ronald G. McKeown, President and Chief Executive Officer, Rotary Power
International, Inc. at (973) 470-7001, e-mail:
london.derry@sympatico.ca

Rotary Power International, Inc. to Develop a
Revolutionary Diesel Outboard Engine

Wood-Ridge, New Jersey, Wednesday, October 9, 2002 - Rotary Power
International, Inc. (RPI") (OTCBB symbol: RPIN) and Rothor Advanced
Power AS (RAP"), a Norwegian based distributor of RPIs rotary marine
engines, have signed a Letter of Intent for the development of a high
performance diesel outboard and sport jet based on the RPI Series 70,
two (2) -- rotor, 250 HP diesel fueled marine rotary engine.

Henry Gonzalez, RPIs COO stated, the objective is to develop a
revolutionary diesel outboard engine with comparable power, size and
weight of the latest generation 4 -- stroke petrol outboards. This
project will be a joint venture between RPI, RAP and the Norwegian
University of Science and Technology, in Trondheim. The project will
commence with the development of a prototype outboard engine ready for
demonstration in Autumn 2003. RPI and RAP have great expectations for
this development project, as the market potential is considerable.
Outboards based on RPIs Series 70, two (2) -- rotor engine will target
the market segment of large outboards."

Thor Henning Olsen, President and CEO of RAP stated, we are very
pleased to have gained a Letter of Intent from RPI to develop diesel
outboards. The RPI engine, Series 70 is probably the only diesel engine
worldwide with such power to weight ratio that can be utilized in this
manner. We believe the obvious reasons for having a diesel fueled
driven outboard RPI engine are as follows, less flammable, better fuel
consumption, wider rpm range, smaller size and lighter weight. The
sales volume potential of outboard engines sold today in this segment is
truly encouraging. Norwegians have a 'reputation to live up to since
Ole Evinrude (Norwegian) made his first Evinrude outboard in 1909 and
the Norwegians are excited about the project and the RPI engine in
general. Its truly the technology of the future."

RPI also announces the resignation of Peter B. Fransham as a director,
effective September 10, 2002.

Safe Harbor Statement

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, RPIs ability to
obtain sufficient funding to be successful, 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 public filings made 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.