January 2006

Digital Gas to be lead on all Entropic Energy projects

New York, NY— Digital Gas, Inc. announced that Entropic Energy LLC has signed an agreement wherein Digital Energy & Farming (DEF) will be the principal contractor on all projects it originates involving waste-to-energy, bio-fuel and farming. This will apply to pending and future tax incentive financings (TIF) and associated municipal financings which will be placed in the name of DEF or a special purpose corporation formed for each project.

Entropic Energy and Digital Energy & Farming have agreed to expand their business relationship in several important areas of environmental concern, including additional waste-to-energy projects, tire recycling and landfill reclamation. The projects being pursued include both United States and international sites.

A partner of Entropic Energy has a pending waste-to-energy agreement with a government client in the Persian Gulf. Entropic has introduced DEF to this project to establish an adjacent farming facility.

Several waste collectors in the United States have expressed interest in the Entropic-DEF alliance for its potential to reclaim landfill real estate. DEF is presently negotiating with multiple landfill owners and several contracts are pending.

Entropic Energy is also directing several tire recycling business opportunities to DEF. The first tire recycling business will be located in East St. Louis and will involve a variety of income strategies including oil and gas production and other by-products. Additional contracts are pending in Michigan and Illinois.

The landfill reclamation business will be organized as joint ventures with municipalities and private owners. These joint ventures will involve the processing of in situ waste as well as new waste. Depending on how a given plant is scaled, the landfill will effectively disappear with only an attractive and environmentally friendly Energy & Farming Center remaining to handle newly created waste.

DEF’s research has found that there were at least 20,000 landfills in the United States in 1978 compared to at least 3,000 today. The estimated disposal costs average $100 per ton, excluding the cost of land and other costs. The total nationwide disposal cost is estimated to be in excess of $25 billion. DEF’s plan is to completely change worldwide waste disposal economics from a cost center to a profit center with additional benefits to local communities such as job creation, increased tax base, reduced food and drug costs, reduced energy costs and enhanced benefits to the environment such as removing waste matter from unlined landfills thus mitigating ground water contamination. Additional benefit and revenue will be derived from the use or sale or recyclables not useable by the Entropic process, including the use or sale of enriched soil. It is estimated that there are as many as 100,000 closed and potentially environmentally dangerous landfills of various sizes in the United States. DEF will be pursuing this business, either to remediate or reclaim the land for beneficial social use and for profit. Prior to the commencement of any project, DEF will conduct site characteristic studies to enable it to address all problems associated with landfill reclamation thoroughly and systematically.

DEF will work with private landfill owners to enable cleared landfill property to be donated to the communities. As previously mentioned DEF will reinvest 10% of its income for the construction of facilities that further the health, education and welfare of the respective communities.


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