Moller International Achieves Breakthrough in Rotary Engine Performance

Business Wire, May 14, 2008

DAVIS, Calif. -- Moller International (OTCBB:MLER) announced today that it has achieved a major breakthrough in rotary engine performance. A version of the Company's Rotapower([R]) engine is designed in such a way that the engine's two rotors operate in series rather than parallel. This design allows the first compressor/expansion rotor to supercharge the second power rotor while the exhaust from the power rotor is further expanded in the compressor/expansion rotor, extracting additional power. In effect, the engine operates in what is termed a compound cycle. Because of the additional energy captured from the exhaust gases, engine noise is reduced by 93% and exhaust temperature is reduced by 47%. Moller International's non-compounded Rotapower([R]) rotary engine has already demonstrated a fuel consumption 12% below that of the new Mazda Renesis rotary engine. Compounding is expected reduce the Rotapower([R]) engine's fuel consumption by an additional 25%.

Rotary engines are particularly small and light relative to their power output and nearly vibration- free in operation. Compounding makes the Rotapower([R]) engine potentially much better than the piston engine in fuel consumption as well. This was the major limitation that prevented the rotary engine from supplanting all piston engines. It now becomes an attractive candidate for the Plug-in Hybrid Electric Vehicle (PHEV) market where weight, space, fuel consumption, emissions and vibration are all critical. The Rotapower([R]) engine previously demonstrated its ability to meet California's Super Ultra Low Emissions Vehicle (SULEV) standard without exhaust after-treatment.

Moller International is in the final phase of negotiations to license worldwide production and marketing rights for its Rotapower([R]) engines to Rotapower Engine Systems, Limited of Southampton, United Kingdom.

About Moller International

Moller International was formed in 1983 and is the developer of the roadable four-person Skycar([R]) and two-person Jetson aircraft. Both aircraft have demonstrated their ability to takeoff and land vertically by using the Company's Rotapower([R]) rotary engine designed specifically for compact, high power-to-weight applications. The Skycar([R]) has the potential to provide an airborne alternative to a significant portion of the miles now traveled by automobiles while the Jetson is a utility and recreational vehicle capable of being legally operated without a pilot's license.

The Skycar([R]) and Jetson have been featured on a number of TV programs including CBS's 60 Minutes, "Highway In the Sky," NBC's Today Show, "Today's American Story," and History Channel's "Greatest Movie Gadgets: Then and Now."

For further information contact: www.moller.com

Skycar([R]) and Rotapower([R]) are registered trademarks of Moller International in the USA and other countries. All other trademarks are the property of their respective owners.

Safe Harbor Statement

Except for historic information contained in this release, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results in the future to differ materially from forecasted results. These risks and uncertainties include, among other things, the company's ability to attract qualified management, raise sufficient capital to execute its business plan, and effectively compete against similar companies.