A Promising Green Technology Company at a Glance

3 Feb 2009

Cavitation Technologies, Inc. (CVAT) is an engineering and manufacturing company focused on becoming the worldwide leader in the sales of nano technology-based cavitation systems.

Cavitation Technology

"Cavitation" is the formation, growth, and implosive collapse of gas or vapor-filled bubbles in liquids. The formation and collapse of these bubbles can have substantial chemical and physical effects on the liquids themselves. While the chemical effects of acoustic cavitation, i.e., sonochemistry and sonoluminescence have been extensively investigated in recent years, little information is available about the chemical consequences of hydrodynamic cavitation created during turbulent flow of liquids. CVAT has perfected its flow-through nano cavitator technology based on its proprietary research in the field of hydrodynamic cavitation. Essentially, the company's cavitation process in fluids provides superior mixing and significantly accelerates the rates of chemical reactions. This unique technology does not have an equivalent in the market.

Biodiesel

The first commercial application of the company's technology is the BioForce 9000 Nano Biodiesel Reactor, the most cutting-edge equipment available today for the production of biodiesel. The Bioforce 9000 offers substantial savings over existing technologies in both construction and production costs as well as its ability to process multiple feedstocks with FFA content as high as 6% using vegetable oil and 4.5% using animal fats.

Clayton Hawranik, President of SRS Engineering, one of CVAT's first clients commented after purchasing a BioForce 9000 reactor, "Working with Cavitation Technology has been a first class experience. They have a game changing technology which will revolutionize the biodiesel industry by allowing biodiesel producers to cut production costs as well as to have feedstock flexibility. We are looking forward to presenting the Bioforce 9000 to all existing and future clients and partners as we see tremendous added value." SRS Engineering is an industry leader in engineering and manufacturing process equipment and biodiesel plant equipment. The company is backed with over two decades of industry experience and over 150 years of combined engineering knowledge.

CVAT will pursue the biodiesel market through three strategies: (1) direct sales of its BioForce reactors for producing biodiesel, (2) the retrofitting of existing biodiesel plants with BioForce cavitation reactors to make them more efficient, and (3) the establishment of its own biodiesel production facilities using its own cavitation reactors.

While attending the National Biodiesel Conference & Expo in San Francisco from February 1-3, 2009 (http://www.biodieselconference.org/2009/default.asp) the company received more than 200 requests to demonstrate its technology. The company anticipates it will have biodiesel products sales of $50 million in the next 24 months with cumulative profits of $100 million over the next 5 years. The market continues to increase dramatically for biodiesel and the U.S. is positioned to become the largest biodiesel market with 19% world market share by 2012 and U.S. demand to grow to 3.4 billion gallons of biodiesel per year by 2015. The new U.S. administration's focus on green technology, energy independence and environmental concern along with multiple government incentive programs and mandates should only increase the current trend. CVAT views its technology as essential to achieving national biodiesel policy.

Modification of Crude Oil

CVAT filed a patent for the rapid modification and enhancement of crude oil at the end of 2008. By applying its cavitation technology to oil refining the company is able to increase the efficiency of refining crude petroleum to gasoline, kerosene, diesel, jet fuel and other valuable hydrocarbon-based products. The developed cavitation reactor generator can be used as a feed injector/mixer and can be easily coupled to a fluid catalytic cracking unit (FCCU) or any other refining facility to maximize the refinery's profitability.

With our system crude oil has been converted into many useful products. One barrel of crude oil gives the following percent yield: gasoline 46.7%, fuel oil 28.6%, jet fuel 9.1%, petrochemicals 3.8%, coke 3.5%, asphalt and road oil 3.1%, liquefied gases 2.9%, lubricants 1.3%, kerosene 0.9%, and waxes 0.1%. Cavitated oil increases the output of light fractions at lower temperatures. Cavitation heats crude oil, disrupts its matrix, and improves API gravity and viscosity. The process breaks down hydrocarbons and facilitates their fragmentation which results in creation of more valuable by-products. There are several potential benefits of using cavitation on crude oil such as, but not limited to: Reducing energy consumption by a minimum of 10%; facilitating cracking of hydrocarbons; increases gasoline/diesel yield by reducing sulfur content; raising the octane number in the straight run benzene and diesel fractions; and facilitating separation of water from the petroleum. For instance, in CVAT trials, oil cavitation in the absence of hydrogen gas has increased the Br-number (ASTM D1159-07) by 6-16%.

Roman Gordon, CEO of CVAT said in a recent press release, "We look forward to productive collaboration with a number of the oil mining and refining companies. Oil refining is a multi-billion dollar industry and we are very excited to become part of it. We are certain that our systems will increase profitability by cutting refining costs, saving energy, and increasing efficiencies. During our testing more diesel and gasoline was produced from the same barrel of crude oil using our technology."

The company is in discussion with several household-name oil companies on the possible use of CVAT technology for the modification of crude oil.

Other Applications

Many other applications of CVAT cavitator technology are being explored:

In the chemical industry CVAT cavitators can be used to process silicones, resins, waxes, textile fibers, lubricants, and much more. Multiple streams of raw materials can be fed into a CVAT cavitator reactor and create instant emulsions with small particle sizes and tight distributions. Many powders such as fumed silicas, zinc oxides and such can be dispersed with amazing results.

Likewise, in the personal care industry, CVAT cavitation systems can be used to process lotions, creams, shampoos, conditioners, body washes, deodorants, and much more. The CVAT cavitator can create instant emulsions with small particle sizes, improved shelf life and enhanced stability and appearance.

In the food and beverage industry, CVAT cavitation systems may be used to process sauces, purees, soup bases, beverage emulsions, dressings, and much more. Beyond mixing, the CVAT technology has also shown promise in the homogenization of milk, the purification of water and for improving the quality of wine. Reactors for the last three applications are being considered.

Summary

The company's unique cavitation technology has no equivalent in the world. And though CVAT is in the beginning of commercialization of its technology in the biodiesel field, in which it plans on making a significant impact on that market and reap tremendous profits, there are also a wide range of large-scale uses for its cavitation technology in which it eventually counts on reaping major rewards.

About Cavitation Technologies

Cavitation Technologies, Inc. (CTI) (CVAT) is an engineering and manufacturing company focused on becoming the worldwide leader in the sales of nano technology-based cavitation systems. Although CTI is focused on applying its technology to modular, turn-key solutions to the biodiesel industry, the company recognizes potential commercial applications for nano-based cavitation technologies in markets such as water sanitation, alcoholic beverage instant aging, milk pasteurization and homogenization, chemical processing, water -- diesel emulsion, crude oil enhancement, and pharmaceuticals. The company is led by seasoned business professionals with management, manufacturing, engineering and environmental experience, and is headquartered in Chatsworth, California. For more information about Cavitation Technologies, please visit http://www.CavitationTechnologies.com or call 1 818-718-0905.

Or come see us at National Biodiesel Conference & Expo, February 1-4, 2009. San Francisco, CA, Booth 140 & 142 http://www.biodieselconference.org/2009/default.asp

A number of statements referenced in this Press Release are forward-looking statements which are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, and within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, and goals, assumption of future events or performance are not statements of historical fact and may be "forward-looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this Release may be identified through the use of words such as "expects," "will," "anticipates," "estimates," "believes," or statements indicating certain actions "may," "could," or "might" occur. Such statements reflect our current views with respect to future events and are subject to certain assumptions including those described in this release. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products, services, and technologies, competitive market conditions, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses, and other factors. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties.

Cavitation Technologies, Inc. does not undertake any responsibility to update the "forward-looking" statements contained in this news release. Any communications received by fax or e-mail concerning Cavitation Technologies, Inc. which have not been authorized by the Company or its investor relations/media advisory firm are specifically disavowed by the Company.