Digital Gas, Inc.(fka DIGGQ)

[Buckey]

2005-10-06 11:29 ET - News Release



NEW YORK -- (Business Wire) -- Oct. 6, 2005

Digital Gas, Inc. (OTC Pink Sheets:DIGG) announced today
that it has agreed to act as a distributor for Lamdo Co. Ltd. of Ho
Chi Minh City, Vietnam for a variety of high-quality consumer products
manufactured in Vietnam. Lamdo Co. is a partner on several energy
related projects in Vietnam with Entropic Energy and Digital Energy &
Farming Asia.
¶ "This business opportunity should significantly increase the cash
flow and profitability of Digital Gas, as the products are of the
highest quality and have excellent margins," said Austin Marshall, a
Director of Digital Energy & Farming, who arranged the deal for
Digital Gas.
¶ The initial products to be distributed are widely popular
furniture for the home and business markets. Digital Gas has arranged
for dock space in Florida for the sale of aggregate products. The same
location will receive the furniture from Vietnam. Southern Florida is
the initial target market and Digital Gas has a sales and marketing
team already contacting several large furniture chains. "Based on
quality and pricing, the products will sell rapidly," added Mr.
Marshall. Lamdo will supply approximately of $100 million of product
annually.
¶ Digital Gas is projected to have a minimum outlay of investment to
support this distribution business which has the potential to add tens
of million of dollars in net profits annually.
¶ Digital Gas is also evaluating opportunities to establish
manufacturing capabilities with Lamdo for specialty parts for its
energy business and for an energy efficient car using special
materials and energy saving technologies. Mr. Marshall, currently in
Vietnam seeking additional business opportunities, indicated that the
company's business in Vietnam could increase significantly. "Vietnam
imports large quantities of gasoline and ethanol. We can make ethanol
as planned for East St. Louis and we have access to oil which can be
refined into gasoline through new refining technologies. This would
greatly expand our presence and profitability in Vietnam," said Mr.
Marshall.
¶ Digital Gas was recently informed by a commercial finance company
that its application for $30 million in debt has been accepted based
on an initial due-diligence and review of information it provided. A
commitment to fund will be made after a successfully completed
due-diligence and mutual acceptance of terms and conditions. The
interest rate on a debt investment would be Prime + 1.5 - 2.5% per
annum. If the financing is completed, Digital Gas would retain $5
million less fees and commissions for its working capital and would
extend $25 million to five of its subsidiaries that it intends
structuring as separate operating companies. The funds to be used by
the respective subsidiaries would serve as equity to support project
debt that has been arranged.

¶ Digital Gas is close to finalizing the acquisition of a major
aggregate deposit in the US that could service the needs of the
hurricane ravaged Gulf Coast areas.
Contacts:

Digital Gas, Inc.
Brian Smith, 732-927-4073
[e-mail]
Source: Digital Gas, Inc.