For Immediate Release

Powerspan Corp. to Receive U.S. DOE Funding for Mercury Control

NEW DURHAM, N.H., June 19, 2001—The U.S. Department of Energy (DOE) announced that Powerspan Corp. will receive funding to study the mercury removal capability of Electro-Catalytic Oxidation™ (ECO) technology. ECO is a cost-effective, multi-pollutant control process designed to reduce smokestack emissions from coal-fired power plants that contribute to mercury contamination, respiratory problems, ozone production, and acid rain.

The proposed $2.8 million contract, which will include two million dollars from the DOE, will be carried out by Powerspan in partnership with FirstEnergy Corp. (NYSE:FE) of Akron, Ohio. The DOE's National Energy Technology Laboratory selected six companies to receive nearly $8 million in federal funds.

Under the contract, Powerspan will utilize its existing ECO Pilot Test Facility at FirstEnergy's R.E. Burger Plant near Shadyside, Ohio. The objective is to optimize the technology's mercury removal capability while maintaining ECO's removal of nitrogen oxides, sulfur dioxide, and fine particulate matter.

"The National Energy Policy calls for advanced technology to meet the nation's challenging energy and environmental goals," said Powerspan Chairman and CEO Frank Alix. "We are proud to have our ECO technology recognized by the DOE for its promise in reducing mercury emissions."

The ECO pilot test unit has been in operation for over two years and has achieved unprecedented mercury emission reductions. Independent testing conducted in 2000 showed that mercury emissions were reduced to below minimum detectable limits, representing a mercury reduction of greater than 81 percent.

The United States Environmental Protection Agency has identified mercury as the toxic air pollutant of greatest concern for public health due to its effects on the nervous system. While mercury emissions from coal-fired power plants currently are unregulated, the U.S. EPA announced in December 2000 that it will issue regulations limiting mercury emissions by December 2003, with compliance expected by 2007.

Powerspan and FirstEnergy are currently constructing an $11.9 million ECO commercial demonstration unit at FirstEnergy's Eastlake Plant near Cleveland, Ohio. The project is being co-funded by a $3.5 million grant from the Ohio Coal Development Office within the Ohio Department of Development. Successful completion of this demonstration will lead to the deployment of full-scale, commercial ECO systems.

Powerspan Corp. is engaged in the development and commercialization of proprietary energy technology for the global electric power industry. Company research and development efforts focus on unique applications of its innovative technology to improve the efficiency and reduce the environmental impact of power generation. More information can be obtained at http://www.powerspancorp.com.

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Powerspan Corp.
Contact: Stephanie Procopis
Director of Marketing
Phone: 603-859-2500, ext. 20
E-mail: sprocopis@powerspancorp.com