Digital Gas, Inc.(fka DIGGQ)

[Buckey]

2003-06-07 00:30 ET - News Release



NEW YORK, June 7 /PRNewswire-FirstCall/ -- Digital Gas, Inc. (OTC Pink Sheets: DIGG) today announced that it has entered the energy, resource and conservation fields in the US through several wholly owned subsidiaries that will operate and maintain the businesses and assets it has established and arranged during the last year. Further details will be made available by the respective subsidiaries through their communications directors and agents in the coming weeks.

Caney Valley Drilling, Inc., a natural resource company with over fifteen years of operating experience and profitability, has been 100% acquired by Digital Gas in a deal that allows its management to continue operation in the natural resource field under a long term management contact which shall include a 5% participation of the net profits and other benefits and incentives.

The corporate goal of Caney Valley Drilling is to rapidly develop coal properties for profit in three areas: coal stripping; coal gas drilling and coal processing in various areas across the US. In addition, it will deliver to consumers, low cost and easily extracted coal and coal gas.

Caney Valley Drilling will finish phase one of coal leasing and acquisitions this month and will make subsequent and ongoing announcements on coal and coal gas (methane) reserve determinations. The company will hire a major international accounting firm to certify the results and report on their findings.

The plan for Caney Valley Drilling is for its management to take it public on a senior exchange later this year. Under the agreement Caney Valley's management will have the option of converting their net profit interest to equity in the new public company and be entitled to corporate stock options and other benefits.

Digital Energy & Farming, Inc., a wholly owned subsidiary, has been formed to build energy plants and associated farming centers across the US. The energy plants use a wide range of "no cost" waste streams as fuel, including many considered to be environmental pollutants, to provide clean and usable thermal energy. The company will utilize this low cost surplus thermal energy to support year round production of cost competitive, pesticide free food and pharmaceuticals from adjacent greenhouse and aquatic complexes.

The corporate goal of Digital Energy & Farming is to rapidly develop and build timely, efficient and significantly profitable clean energy, food and water production plants across the US plants in unique partnerships with towns and counties. The company has assembled its technical, sales and marketing staff and a proven team of experts to take advantage of the opportunities that exist in this significant and emerging growth field.

Digital Energy & Farming has developed several projects and is in the process of acquiring plant sites. The company will employ major international design-build firms to complete designs for the plants and construct, operate, maintain and provide a performance guarantee for the project. A financing methodology for these projects has been established. A source for the funding has been identified and, based on current negotiations, it will proceed with funding after a final due diligence of the feasibility of the projects, and regulatory approvals are obtained and the value and liquidity of collateral, which a strategic partner has arranged to facilitate an all debt funding, is confirmed.

Both Caney Valley Drilling and Digital Energy & Farming will have by-laws prohibiting loans to officers and directors and necessitating that 90% of corporate profits be paid to shareholders as common stock or preferred dividends as earned and on a timely basis.

The plan for Digital Energy & Farming is also for its management to take it public on a senior exchange later this year.

A consulting firm with national experience has agreed to assist the new companies in the process of application and acceptance for trading on the American Stock Exchange via an SB2 registration to commence next month. The details of this agreement will be made available by the respective companies in the coming weeks.

The firm has 25+ years in the industry with broad experience ranging from retail operations and sales to investment banking and syndication. They maintain an extensive network in the retail, investment banking and syndication side of the industry. They are also very active in the private, venture capital arena and enjoy a wide circle of associates involved in corporate startup, mergers and acquisitions, business consulting, stock transfer, accounting and IR.

The firm is active in several investment banking and conference organizations that provide exposure and capital to growth companies.

For further information write [e-mail]

CONTACT: Matthew Bishop
[phone]

Digital Gas, Inc.



CONTACT: Matthew Bishop of Skopos, [phone], for Digital Gas,
Inc.