Encompass Holdings' RETI Rotary Engine has Patent Pending Status

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New rotary engine development enables low harmful exhaust emissions without a catalytic converter.

Encompass Holdings, Inc. (Pink Sheets: ECMH.PK), http://www.encompassholdings.com announced today that its subsidiary, Rotary Engine Technologies, Inc., http://www.encompassholdings.com/reti2.htm has filed its Patent Application with the U.S. Patent and Trademark Office (Application Serial No. 12/487,055) and has Patent Pending status for its 407cc rotary engine.

The RETI patent covers its new innovative rotor housing and barrel valve designs. Its state-of-the-art electronic fuel management and ignition system provides a major enhancement in fuel efficiency and reduction in harmful exhaust emissions without the use of a catalytic converter. Its rotary engine also includes newly designed ceramic apex seals which promote greater engine longevity. All of this technology can be applied to RETI's larger rotary engines still in development. Its 407cc base engine weighs 53 lbs and produces 32 HP with high torque at lower RPM.

"We have one of our 407cc rotary engines crated for shipment to a certified independent laboratory for Environmental Protection Agency (EPA) and California Air Resources Board (CARB) testing as soon as all required documentation is in order and we receive clearance from EPA to start the test procedures. We have established through our own in-house testing and with outside consultants that our engine exhaust emissions are well within the limitations required to pass these tests," stated Larry Cooper, head of engine development.

Of the many potential applications such as generators and compressors, the initial use for our 407cc rotary will be to power our own XBoard; a motorized surfboard produced by Encompass subsidiary, Aqua Xtremes, Inc., which designs and develops innovative marine products. Some of the other marine applications include tunnel boats, pontoon boats and motorized kayaks.

The immediate focus of the RETI R&D program is the use of the new technologies in production of "green engines". These engines will use alternative fuels such as Propane, Natural Gas, and Hydrogen.

RETI and Aqua Xtremes are currently negotiating with manufacturing companies to begin producing the 407cc engine and the XBoard. While waiting for EPA and CARB certifications, the companies plan to pursue international sales of engines and XBoards.

Encompass Holdings, Inc. delivers financial and executive management support to enhance business success across several industries. The corporate strategy emphasizes vertical and horizontal diversification, innovative product development, and overall market penetration.

Forward-looking statements in this news release are made under the ``Safe Harbor'' provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the impact of changed economic or business conditions, competition, the success of existing and new product releases and other risk factors inherent in product development, extreme sports industries, and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.

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Larry Cooper
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