Texas Commission on Environmental Quality Approves ORYXE Energy International Diesel Additive
Approval Marks First Time Regulatory Body Allows Blending of Fuel Additive to Meet New Low-Emission Diesel Standards

IRVINE , Calif.-- (BUSINESS WIRE)--Oct. 12, 2004-- ORYXE Energy International announced today that the Company's EPA registered fuel additive, ORYXE LED, has been approved by the Texas Commission on Environmental Quality (TCEQ) for use in alternate plans as a qualifying fuel to meet Texas Low Emission Diesel requirements.

The approval of the ORYXE Energy additive marks the first time the TCEQ, which sets environmental standards for fuels sold in the state of Texas, has allowed both refiners and fuel producers the flexibility of meeting regulatory standards by blending an additive at either distribution locations or at refineries.

The agency's decision to allow ORYXE Energy to distribute its product for use in Texas will help alleviate supply concerns when new regulatory mandates for diesel fuel are enforced beginning April 1, 2005. These new mandates require on-road and off-road diesel to meet strict environmental guidelines for emissions reductions. Many refinery industry experts have questioned the ability of fuel producers to meet the market demand under the new regulations, especially because other methods would require enormous capital investment. However, with ORYXE Energy's solution, ORYXE LED can be splash-blended with standard federal diesel at the terminal or refinery, with minimal hardware expense.

"This approval by the TCEQ is an exciting development for ORYXE Energy, the fuel industry and the environment," said Walter Schindler, chairman of the board and CEO of ORYXE Energy International. "We are excited that the ORYXE diesel additive can reduce environmental pollution cost-effectively and within the framework of the existing oil industry infrastructure."

ORYXE Energy, based in Irvine, Calif., develops and markets proprietary, organic fuel additives for diesel, gasoline, and heavy distillates to enable these fuels to burn cleaner, thus reducing toxic environmental emissions.

The TCEQ approval followed a rigorous engine testing protocol performed at the West Virginia University National Research Center for Alternative Fuels, Engines, and Emissions laboratory, recognized by the Environmental Protection Agency and certified by the California Air Resources Board. The tests were conducted under strict federal testing guidelines and procedures.

The tests showed that ORYXE LED demonstrated a greater than 5.7 percent reduction in Oxides of Nitrogen (NOx), greater than 20 percent reduction in Total Hydrocarbons ( THC), the main contributors to smog formation, and approximately 10 percent reduction in Carbon Monoxide (CO), a poisonous gas, all major concerns for Texas air quality stewards. Widespread use of ORYXE LED in diesel fuel would result in reducing up to 6,000 tons of NOx annually.

About ORYXE Energy

ORYXE Energy International, Inc., (www.oryxe-energy.com) based in Irvine, Calif., develops, certifies, and distributes bio-additives that improve fuel performance and reduce toxic emissions from the combustion of hydrocarbons, such as diesel fuel and gasoline. The company develops and markets proprietary, organic fuel additives for diesel, gasoline, and heavy distillates to enable these fuels to burn cleaner, thus reducing toxic environmental emissions.

Odyssey Venture Partners (www.odysseyventure.com) of Newport Beach, Calif., is the lead venture capital investor in ORYXE Energy.

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