China National Petroleum Corporation and Power Technology Inc. Forge Ahead

Business Wire, June 6, 2002

Business Editors

LAS VEGAS--(BUSINESS WIRE)--June 6, 2002

The Joint Working Group comprising Representatives of Power Technology Inc., Power's Chinese Partners -- APMT, and China National Petroleum Corporation established at the end of January 2002 to investigate and develop Power Technology's unique and Patented "Pipelink" Technology for marketing to China's massive Oil and Gas Pipeline industry is continuing on its targets.

Verification of Cost Savings and Technology:

Alan Rainbird quotes the Senior Executive of CNPC as putting on record that "this revolutionary technology will change the history of Pipelaying and, once it is awarded its National License, it will bring tremendous opportunities to the PWTC and APMT Partnership." The Group has established that "Pipelink" would meet all regulatory requirements for welded pipe joints in China and on this basis work continues towards achieving Certification. CNPC are currently investigating whether or not our Magnetic Pulse Technology could in fact become the subject of a new regulatory requirement. This would be a very positive step towards fulfilling the Company's objective for Pipelink to become the standard specification for all Chinese Pipelaying Tenders in the future.

The key elements of Pipelink, massive cost savings, minimal safety risks, and significantly lower maintenance costs, are expected to bring the PWTC/APMT partnership considerable and official support from the Government of the P.R. China. CNPC have additionally laid considerable emphasis on the elimination of the human factors using Pipelink especially in that the technical parameters (current, voltage, electromagnetism, etc.) are automatically controlled and set prior to the joint being effected. Following considerable preparatory work in the USA and Canada, including the establishment of a pilot scale construction site in China, it is expected that we will apply for Regulatory approvals later this year. Specialists are now being employed into APMT to prepare our application and negotiations are in hand to build and ship a set of production level equipment from USA to China.

Business Plan & Marketing:

With regard to establishing the Business plan and marketing program for China, the Company is ahead of its original targets. Commercial sensitivities restrict us from releasing specific material identifying the first applications of our Pipelink technology but a revenue earning field test has already been agreed (subject to the anticipated Regulatory approvals) for later this year. It has been determined that there is actually greater profitability in the construction of feeder pipelines and these will be the first aim of our Marketing Program for the later 2002 and the first quarter of 2003. We have every reason to expect considerable success in this period. In March 2003, tenders will be called for the construction of the second phase of China's massive "West-East Pipeline" from Xin Jiang Province to Shanghai and the Company is hopeful to expect bids to be entered employing Pipelink technology.

APMT, as partners of Power Technology are currently studying the Capital requirements to contract, to build and employ Pipelink in China and an announcement should be forthcoming.

This press release includes projections of future results and "forward-looking statements" as that term is defined in Section 27A of the Securities Act of 1933 as amended and section 21E of the Securities and Exchange Act of 1934 as amended. All statements that are included in this press release other than statements of historical fact are forward-looking statements.