Energy BioSystems designates prototype biocatalyst for pilot plant desulfurization process simulation

Business Wire, Nov 20, 1996

THE WOODLANDS, Texas--(BUSINESS WIRE)--Nov. 20, 1996--Energy BioSystems Corporation (Nasdaq:ENBC) today announced that it has designated a prototype biocatalyst for use in its pilot plant.

"This is a critical milestone for Energy BioSystems as it leads the way for us to begin our pilot plant desulfurization process simulations," said John H. Webb, President and CEO of the company. "With the biocatalyst designation accomplished, we will be ready to begin the process simulations when our new supply of diesel feedstock arrives within the next four weeks."

"The prototype biocatalyst is a genetically engineered microorganism that is similar to our earlier strains of biocatalyst," explained Dr. Daniel J. Monticello, Vice President of Research and Development. "What makes the prototype better than earlier strains is that this strain incorporates the 'fourth factor' and prefers the oil/water interface, which is simultaneously yielding higher activity and addressing our mass transfer issues. This material has the catalytic and physical properties that are representative of the biocatalyst that we will be using in our commercial plants. We will continue to develop improved versions of this prototype since there is a need to further enhance the catalytic properties of the system and reduce the manufacturing costs of the material."

Large-scale production of the prototype biocatalyst is underway at Energy BioSystems' corporate research facilities and other off-site locations. "Starting the production now will ensure that we have a satisfactory inventory level of biocatalyst available upon the arrival of our new supply of diesel feedstock," Monticello added. "Fifteen tons of this feedstock is due to arrive in St. Louis within the next four weeks from one of Total Raffinage Distribution's French refineries. When the feedstock is in place at the pilot plant, we will be ready to initiate the process simulations."

The simulations are expected to give Energy BioSystems the information needed to complete the design basis for the first commercial units. "They are also expected to provide the data that Total and our other customers need to make purchasing commitments for BDS," Webb noted.

Energy BioSystems Corporation, of Houston, (Nasdaq:ENBC) is commercializing biotechnology-based processes for the petroleum refining and production industries. The company's focus to date has been on developing biocatalytic desulfurization, a proprietary process involving the use of bacteria to remove sulfur from petroleum. This process is expected to help refiners worldwide meet environmental regulations in a more cost-effective manner and has the potential to greatly improve the value of high-sulfur crude oil reserves.

This document contains forward-looking statements that are subject to certain risks, uncertainties and assumptions. Should one or more of such risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated in such forward-looking statements. For a discussion of such risks and assumptions, see "Risk Factors" included in the Company's annual report or Form 10-K for the year ended Dec. 31, 1995.

CONTACT: Energy BioSystems Corp.

Rebecca L. Elliott, 281/364-6132 (Media)

Paul G. Brown, III, 281/364-6140, (Investors)