"The testing and the Company's subsequent evaluation of the ARC results confirm that the Xogen process (the "Process") works to produce an oxygen-hydrogen gas mixture," said Barrie Shibley, president of Tathacus. "Our own due diligence, based on the ARC testing provides a clear proof of concept for the Xogen technology. Both Tathacus and Xogen are eager to further refine and optimize the technology's operational parameters as we drive towards commercialization."

 "Xogen's technology is not a fuel cell, nor is it a typical electrolysis system for producing hydrogen. It is a compact, patented system that produces an oxygen-hydrogen gas mixture," added Mr. Shibley. "In that sense, the technology establishes its own unique niche in the hydrogen industry. We remain confident that the technology has the potential to deliver oxygen-hydrogen gas as a fuel for home and industrial applications."

 Under the terms of Tathacus' agreements with Xogen, certain components of the data will remain confidential for proprietary and competitive reasons. A summary of the ARC results and the Company's comments are provided as an attachment to this release. A complete copy of the ARC report has been filed with the Canadian Venture Exchange on a confidential basis.

 ARC's role and test results are summarized as follows: - Four prototype Xogen generators were tested for the following:

    - Chemical analysis (done by an independent analytical laboratory) ofthe tap water used in the process before and after a test,

    - Temperature rise in the water during the test in one of the generators,

    - Gas production rate and chemical analysis (done by an independent analytical laboratory) of the same in one of the generators,

    - Pressure increase in one of the generators, and

    - Energy input to the process in one of the generators (ARC was not required to conduct an economic assessment of the process).

  - The Process involves the passage of electrical current through water for the generation of oxygen-hydrogen gas mixture.

   - The Process employs a digital waveform generator capable of running multiple cells (up to eight were tested) simultaneously.

  - The gas production appears to be controllable on demand, and prototype generators tested did not use any moving parts.

  - Gas samples collected and analyzed were found to contain hydrogen and oxygen gas in a ratio approaching a value of 2:1.

  - The Process produced oxygen and hydrogen gases without recombination to at least 50 pounds per square inch (PSI) pressure.

  - Chemical analysis of the Process water showed increases in manganese and iron after the short duration test.

  - Temperature increase in the water for a single cell modular generator was measured to be 0.0013 degrees centigrade/minute/watt of battery power. The test apparatus did not incorporate any apparatus designed to cool the water.

  Additional internal analysis performed by Tathacus confirms that Xogen's process:

  - is capable of producing variable, on-demand generation of oxygen-hydrogen gas mixture at the point of consumption;

  - uses only regular tap water as feedstock;

  - is compact in size;

  - is modular, with an expandable design;

  - uses a totally digital electronic system;

  - uses simple, relatively inexpensive "off the shelf" components; and - has "plug & play" compatibility with solar and wind power. (Normal AC power is not necessary, but the system can be run from grid power if desired.)

  "The U.S. Department of Energy identifies distribution and storage as two of the major barriers to the emergence of the hydrogen economy, arguing that it will take billions of dollars and many years to make the necessary changes to the energy infrastructure," added Mr. Shibley. "Xogen's goal is to eliminate the need to transport and store hydrogen energy by producing it on-site and on-demand. In my opinion, the production of commercially viable quantities of oxygen-hydrogen gas mixture utilizing renewable energy sources has the potential to take the world out of the fossil fuel loop." MORE