Mr. Paul Woodward reports

AETHER CATALYST SOLUTIONS, INC. PROVIDES UPDATE ON USMEAP WITH CITY OF BURNABY

Aether Catalyst Solutions Inc. has provided the following update on its urban small motors emissions abatement project (USMEAP) with the City of Burnaby.

The first year of the project was challenging, in that unseasonably hot and dry weather limited the usage of the test equipment; however, the first year of testing showed that Aether's catalyst deployed in Burnaby's equipment resulted in a significant NOx (nitrogen oxide) abatement, greater than 50 per cent. This is despite mechanical failure of the matt sealing the catalyst in the can, causing limited utilization of the catalyst.

NOx is responsible for smog and the typical brown cloud that covers larger cities and produces poor air quality. NOx emissions contribute to acid rain and formation of ground-level ozone that can damage ecosystems, animal and plant life. NOx can cause serious health damage to humans, including respiratory diseases -- globally 4.2 million people die prematurely per year from air pollution related health issues. Of the many categories of small off-road engines (SOREs), just garden equipment engines produce up to 5 per cent of the nation's air pollution and a good deal more in metropolitan areas.

For year 2, the program will expand the number of units equipped with Aether catalysts, thereby increasing the data set. Additionally, technology from the first test has been adjusted to maintain peak performance over a greater operating life span. Further, a new system design will be evaluated that aims to capture a larger cross-section of the criteria air contaminants found in exhaust gas.

Aether has a total of six test units in the field all of which have catalysts converting at least 95 per cent (average of 98.5 per cent) of the NOx as of the last measurement. At this point in the field test the company has three units at over 20 hours of use and all three of these units have maintained complete conversion of NOx. As expected, this is a significant step forward in comparison with last year's test where NOx conversion had already decreased by 20 to 25 points after 20 hours.

Taylor Procyk, chief operating officer of Aether, comments: "It is still early in the season, but we've had a strong start and are expecting to get more usage than last year. Given what we know about the catalyst, the way it's being operated and the early results, I am optimistic that when we wrap up testing in the fall, the catalysts will still be operating at virtually 100-per-cent conversion."

About Aether Catalyst Solutions Inc.

Aether Catalyst Solutions, a clean air company, is focused on providing an order of magnitude cost reduction in automotive catalytic converter catalyst, while meeting, or exceeding, government emission standards. Aether is working to quickly advance its technology through rapid screening of new material combinations. While Aether's primary focus has been automotive applications, the company is also developing catalysts to address small motors emissions, a significant contributor to urban air pollution. Aether's subsidiary, Cap Clean Energy Corp., has been formed to utilize novel proven technology to produce ultralow-carbon dispatchable electricity and energy products whilst capturing the associated carbon dioxide emissions for geologic storage or utilization.

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