Digital Gas, Inc.(fka DIGGQ)

[Buckey]

2005-12-16 15:23 ET - News Release



NEW YORK -- (Business Wire) -- Dec. 16, 2005

Digital Gas, Inc. (OTC Pink Sheets:DIGG) announced today
that it will form two energy related consortiums to commercialize
patented technology and create oil shale and energy savings
businesses.
¶ This was in response to an offer of an asset backed loan from a
private trust and strong interest being received to partner on Digital
Gas projects from major Fortune 500 companies.
¶ Collateral to facilitate a loan package, which Digital Gas has
been informed will be for a minimum of $300 million, has a certified
appraisal value of $577 Million, as well as having a financial Safe
Keeping Receipt (SKR) with full financial responsibility from Grupo
Cometra, a division of Grupo Seguridad Integral of Mexico. Grupo
Seguridad is the leading security firm in Mexico now in their 26th
year.
¶ The owners of the collateral are seeking to enhance their return
on properties already producing significant steady income. The
properties include residential, commercial, farming and vacant land
that Digital Gas may have the opportunity to develop as part of this
arrangement. This funding opportunity is in addition to the previously
announced asset backed funding for $30 million of which $5 million is
anticipated to close this month or early next month.
¶ As a result, Digital Gas expects to fund all of its businesses
within the next thirty to forty-five days of the submission of loan
documents, anticipated to be filed next week. Those businesses to be
funded are the following: waste-to-energy, fuel cell products and
technologies, mass storage products and technologies, bio-fuel and
farming operations, oil shale, tar sands and coal bed methane
extraction, tire processing, nanotechnology and environmental
remediation.
¶ In addition to the asset backed funding, Digital Gas will now seek
to fund each of the consortiums with an initial $1 Billion in equity
for development, commercialization and further acquisitions.
¶ With these investments in place, the Consortiums will seek to
raise the balance of $5 billion thought needed for the full expansion
of commercial activities through debt or convertible instruments.
Contacts:

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