State of Texas Approves First Biodiesel Additive to Reduce NOx Emissions, ORYXE LED for Biodiesel

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ORYXE Energy's Biodiesel Technology to Help in State's Efforts to Reduce Air Pollution

ORYXE Energy International received official notification today from the Texas Commission on Environmental Quality (TCEQ) that the company's biodiesel fuel additive, ORYXE LED for Biodiesel, has been approved for use in the state. Test results from a B20 biodiesel blend, submitted to the TCEQ, show that the additive reduces the increase in NOx (oxides of nitrogen) emissions from biodiesel to the level required to qualify as Texas Low Emission Diesel (TxLED). Fuel producers can now blend ORYXE LED for Biodiesel directly into finished biodiesel blends up to B20 and achieve significant reductions in NOx. The ORYXE Energy technology is the first additive for biodiesel to win approval from the state of Texas.

The emissions tests that supported the approval under the TxLED program were conducted at West Virginia University Engine and Emissions Research Laboratory, an EPA-recognized facility, and were funded in part by the state of Texas through a grant from the TCEQ.

Results from a U.S. Environmental Protection Agency (EPA) study show that biodiesel reduces all regulated emissions, with the exception of NOx. NOx is a major contributor to ozone pollution and is a serious problem in many areas of Texas. The TxLED program was launched in November of 2005 to reduce NOx emissions from diesel exhaust in 110 counties, including the metropolitan areas of Houston, Dallas-Ft. Worth, Austin and San Antonio.

"There are so many benefits to biodiesel, and ORYXE Energy is pleased to offer a NOx solution that adds one more plus to the fuel," says James M. Cleary, ORYXE Energy chairman and chief executive officer. "The approval of ORYXE LED for Biodiesel gives the state, biodiesel producers and consumers another tool to improve air quality. It also gives biodiesel producers an option to reduce NOx and deliver a TxLED-compliant fuel using a single additive."

Texas is one of the largest biodiesel producers in the nation with 15 existing commercial production plants and several more under construction. According to the National Biodiesel Board, the state's total annual production capacity will double in 2007 to approximately 250-million gallons.

ORYXE Energy produces an additive for standard diesel at its blending facility in Pasadena, Texas. "Our additive technology is reducing thousands of tons of NOx from standard diesel across Texas," says Cleary. "With the tremendous interest in biodiesel, it makes sense for us to leverage our proven technology and resources in Texas to help the state take advantage of the great potential biodiesel offers."

About ORYXE Energy

ORYXE Energy International, Inc., (http://www.oryxe-energy.com) based in Irvine, Calif., develops, certifies and distributes proprietary additives that improve fuel performance and reduce toxic emissions from the combustion of hydrocarbons, such as gasoline, diesel, residual fuel and other distillates. Founded in 2001, ORYXE Energy was named a Top 100 Innovator by Red Herring magazine in late-2004. The company has six issued U.S. patents, three issued foreign patents and many patents pending in the United States and abroad.

Forward-Looking Statements

Estimates, expectations and business plans are forward-looking statements. Actual future results, including product introduction schedules, market receptiveness, regulatory approvals and commercial viability, could differ materially due to changes in conditions affecting the industry, political, legal or regulatory developments, and market conditions.

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Kristen Frey
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