Ultraguard Water Systems (fka UGRD)

[mick]

recap intro,,,Introducing a Cleaner, Safer, Cheaper and More Versatile Fuel Cell

VANCOUVER, BC, April 3, 2002 - MagPower Systems is introducing a proprietary Magnesium-Air Power Cell (MAPC) as a primary, alternative and emergency power generator. MAPC's greater safety and cost savings are significant advantages over the better-known hydrogen fuel cell (HFC), manufactured by companies like Ballard, Global Thermal Electric and Hydrogenics. Both fuel cells produce electricity through an electrochemical reaction, but magnesium-based fuel cells are more environmentally-friendly, easier to recycle, more versatile and more efficient because they are simpler and safer.

Cleaner
Bruce Downing, President of MagPower Systems Inc, says: "The Magnesium-Air Power Cell supports the global push for a sustainable environment. MAPC is more easily recycled. It is clean, green and consumes no fossil fuels. No toxic emissions are produced, thus reducing harmful greenhouse effects. To recharge the cell, you basically replace the magnesium core and the salt or sea-water electrolyte. "

Safer
The simple magnesium anode and natural electrolyte make this cell less combustible than a hydrogen fuel cell. It does not require a safety-sealed fuel storage like HFC. The fuel can either be magnesium or a magnesium-alloy, while the fuel for HFC must be pure hydrogen. This makes MAPC easily transported by plane with no special safety permits. It is safe around children since magnesium is non-toxic. All of these features make MAPC better for consumer products.

Cheaper
MAPC has an indefinite shelf life because the electrolyte can be removed before storage. When power is needed, the electrolyte is poured back into the cell. No other electrolyte in a non-magnesium fuel cell, power generator nor battery can be removed, stored and reused by the consumer. This sustainability provides a reliable source of power for emergency situations.

In addition to the inexpensive saline solution, the cell has fewer parts so production is less costly and faster than with HFC. This also makes the MAPC less expensive than HFC per 12-volt system. Downing explains the technical findings of a 12-volt unit: "There is more electric yield per cell, 80% v. 45% to 60%. The voltage is higher per cell, 1.6 v. 0.8. Operating temperatures are lower, 55o C instead of 70o to 100o C. And it can operate at temperatures as low as -10o C, whereas HFC cannot operate well at low temperatures."

More Versatile
The cleaner, safer, cheaper qualities mean greater adaptability of the technology. Five different MAPCs are being developed with strong support from the federal and provincial governments, and industry alliances. These include a portable unit (12 volt / 300 watt), an industrial unit (125 volts) with BC Hydro, an automobile unit with interest from Volvo Car Corporation, a marine unit in collaboration with the National Research Council of Canada and a remote unit (12 volt / 300 watt) to run equipment for Automated Flow Inc.

Active Ingredient
The secret to the superior qualities of MAPC over HFC is the company's unique R&D approach to energy. Research in this magnesium-air technology began in the sixties, but no one was able to produce a viable product, as most of the energy loss was due to hydrogen formation. MagPower has successfully controlled the formation of hydrogen, which is the key to commercialization.

The company's R&D team at UBC and BC Research developed a breakthrough hydrogen inhibitor (HIT) as the controlling agent. Independent testing verified that instead of the usual rapidly decreasing power discharge curve, adding a hydrogen inhibitor produces a flat line power discharge. Downing says: "We're the only ones in the world so far who have figured out how to control hydrogen. By adding a hydrogen inhibitor to the electrolyte, energy outputs are now commercially viable."

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FOR IMMEDIATE RELEASE

Introducing a Cleaner, Safer, Cheaper and More Versatile Fuel Cell

No Reverse Engineering
Most importantly, reverse engineering of the hydrogen inhibitor (HIT) process is not possible. MagPower can develop unique and customized HIT for various applications. This gives the company a significant position in the marketplace. With this advantage, MagPower filed two Intellectual Property patents in the USA for the specialized process of controlling hydrogen for MAPC and zinc electrowinning. The company also filed a patent with the World Patent Co-operation Treaty (PCT), covering 84 countries. Therefore, as a member of Team Canada in the fuel cell sector, MagPower demonstrated its expertise in Japan.

Besides hydrogen reduction, HIT can be transferred to other electrochemical processes such as batteries and electrowinning (the plating out of metals from electrolytic solution in refining and waste-water treatment). For example, independent tests for zinc electrowinning confirmed that MagPower's inhibitor increased the current efficiency from 89% to 97%. The primary benefits include substantial power consumption savings with secondary savings from increased productivity, and reduction of health and safety hazards.

Licensing
MagPower licenses its MAPC technology for specific applications (including manufacturing) and the use of HIT to mineral producers, but retains production of the hydrogen inhibitors. The abundant market utilizations for MAPC and HIT are significant and continuous revenues for MagPower. The licensing structure provides long-term growth for the company. McGroarty, a seasoned entrepreneur explains, "We're not here today, gone tomorrow. We're here for the future of BC. In order to develop more market niches with future applications, we're inviting all interested investors to examine our unique business model."

The Company
MagPower Systems Inc., established 1999, is a private company whose purpose is to license the versatile Magnesium-Air Power Cell and patent-pending hydrogen inhibitor process. The President, Bruce W. Downing (M.Sc., P.Geo., FGAC), has over 25 years of technical experience and the CEO, Shawn A. McGroarty, has over 20 years of senior management experience in the corporate sector in Canada and the USA.

The Board of Directors is planning to list MagPower on a public exchange in the fourth quarter of 2002.

FOR MORE INFORMATION, CONTACT:

President: Bruce Downing
CEO: Shawn McGroarty
Phone: [phone]
Fax: [phone]
Address: 340 - 6165 Highway 17 Delta, BC
Email: [e-mail]
Web address: http://www.magpowersystems.com

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DISCLAIMER:

This news release contains forward-looking statements relating to future results of the company as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: the successful commercialization of its alternative fuel cell technology; its ability to acquire and develop both new and existing forms of alternative energy technology; market acceptance and demand; pricing pressures and other competitive factors; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

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