NEW YORK-- Digital Gas, Inc. (OTC Pink Sheets:DIGG) announced today that its Digital Sofcell solid oxide fuel cell ("SOFC") subsidiary will participate in a joint venture with Shanghai ShenLi High Tech Co. ("ShenLi"), and Goeta Technology Developer International ("Goeta"). The management of Digital Gas anticipates SOFC will be considered the dominant fuel cell technology used in China and eventually worldwide after the first SOFC products from the Joint Venture are tested against all existing proton exchange membrane ("PEM") fuel cell products from several W to hundred kW level currently used in various business areas, especially for fuel cell cars and buses.

This joint venture (JV) will be formed based on contributions and combination of advantages from both sides. Digital Sofcell and Goeta, the developer of a breakthrough low temperature solid oxide fuel cell (IT/LTSOFC) technology, will contribute SOFC technology, patented SOFC material production and fabrication and manufacture facilities which have been established in China since 2000, other technologies and systems plus investment and Shanghai ShenLi, China's leading developer, manufacturer and marketer of fuel cells, will contribute the facilities, engineering team and equipment, as well as their recognized expertise in fuel cell systems, installation of fuel cell products and other technical resources and capabilities. ShenLi has demonstrated several unique and proprietary fuel cell technologies that offer lower cost, safer, longer life time, and higher performance fuel cells.

Shanghai ShenLi plans on being the leading source of power in China for the transportation, stationary and portable markets. ShenLi is led by Dr. Li Qing Hu, CEO and CTO. Dr. Hu received his doctorate at the Shanghai Institute of Organic Chemistry and is the author of fourteen significant papers in the areas of chemistry and fuel cells. He is the leading fuel cell expert in China and has received significant government funding and support. Since 1998, Dr. Hu and ShenLi have been awarded many research contracts from the Chinese Ministry of Science and Technology, and Shanghai Municipal Science and Technology. In particular, ShenLi has received and successfully completed, seven very important research contracts including: the National Ninth-Five Year Key Science and Technology Project "PEMFC Technology", National Tenth-Five Year 863 High Technology Project "Fuel Cell Engines." ShenLi holds a total of 150 Chinese and United States patents and has more than 50 proprietary technologies that resulted from the PEMFC Technology and Fuel Cell Engines projects. ShenLi has demonstrated several unique and proprietary fuel cell technologies that offer significant advantages over current fuel cell existing solutions that provide for lower cost, safer, longer life time, and higher performance characteristics.

Dr. Bin Zhu founded and leads Goeta Technology Developer International. Dr. Zhu is considered to be the world's leading expert in intermediate and low temperature solid oxide fuel cells ("IT/LTSOFC"). He is also internationally recognized for his work in ceramic fuel cells. During the short period between 1999 and 2000 his research resulted in about 30 publications and a series of international recognized breakthroughs in IT/LTSOFC material science and technology. In 2004 Dr. Zhu's work was judged "well placed in developing an international leading role in the development of LTSOFCs" by an international panel consisting of six experts from Canada, USA, Denmark, Finland and Austria organized by the Swedish research council (VR) in 2004. Since then Dr. Zhu has been refining his basic breakthroughs and, after attracting world wide industrial and commercial interest, is now ready to begin commercialization through the JV with Digital Sofcell and Shanghai ShenLi.

Digital Gas is also pleased by the fact that Goeta and Dr. Zhu have established their own patented IT/LTSOFC material production based and ceramic component fuel cell device manufacture in China. IT/LTSOFC represents new advanced technology and is the next generation fuel cell. It has provided new feasibilities and availabilities for solutions to the current SOFC problems and challenges to commercialization.

Digital Sofcell will further joint venture with Digital Ultracap to produce integrated systems that will bring state of the art distributed generation to the home, small businesses, industrial firms, shopping centers and malls, hospitals, residential and commercial real estate and the hospitality industry, well as other venues.

Digital Sofcell is currently negotiating with investment banking firms to fund the $250 million that it is seeking to raise to establish this SOFC technology as the worldwide leader in the manufacture and marketing of fuel cell systems. A management consultant firm recently retained by the company is currently contacting potential strategic partners among end users and may raise the $250 million in this manner.

More about Dr. Zhu: He has extensive international cooperative research and development experience including: project leader for the Sino-Swedish bilateral cooperation project on ITSOFC research under NUTEK (The Swedish Board for Industry and Technology Development) and MOST (Ministry of Science & Technology of China); selected by the Swedish government to develop and implement research cooperation with China; leading a United Nation's bilateral cooperation program with NFR (Swedish Natural Science Research Council), NSFC (National Natural Science Foundation of China), KVA (the Swedish Royal Academy of Sciences) and CAS (Chinese Academy of Sciences). Supported by TFR, STINT and NSFC, Zhu had successfully co-organized the 97th Xiangshan Scientific conference on New Solid State Fuel Cells, an international colloquium in Beijing, China which provides the Chinese central government information and strategies for decision making for National Tenth Five-Year economic development plan on SOFCs. In addition, Dr. Zhu has been appointed by a number of Chinese universities as the professor. Dr. Zhu is currently coordinating a Sino-Swedish LTSOFC network including 14 top universities/institutes and 6 relevant industrials from Sweden and China, providing solid base and various supports to this on-going project. Dr. Zhu received his doctorate from Chalmers University of Technology in Physics and Engineering Physics and did Post Doctorate work at Uppsala University, Angstrom Lab, Department of Materials Science.

Major utilities, potential large corporate customers and local, state and federal governments may express interest or inquire further at our email address below.

For further information: call Brian Smith (732) 927-4073 or email energei@optonline.net