New Durham, NH - July 24, 2000 -- Powerspan Corp., an emerging energy technology company, today announced the appointment of Guy L. Pipitone, Preston R. (Jeff) Miller, Jr., and Martin (Marty) L. Mearhoff to the Company's board of directors. This announcement comes at the closing of over $26 million in new financing received from a group of investors including FirstEnergy Corp., The Beacon Group, American Electric Power (AEP), Calvert Group, and Zero Stage Capital.

Guy Pipitone, 50, is Vice President, Fossil Generation, of FirstEnergy Corp., a diversified energy services holding company. FirstEnergy's electric utility operating companies comprise the nation's tenth largest electric system, serving 2.2 million electric customers in Ohio and Pennsylvania.

Pipitone has over 25 years of experience in engineering and management of utility operations. In 1972, Pipitone joined Ohio Edison Company—an operating company of FirstEnergy—as an engineer and has served in a number of positions in the generation area, including plant manager of the Gorge and W. H. Sammis power plants. He has served as manager of the Production Department, Akron division manager of the Distribution Group, and vice president of the Generation & Transmission Group. For the Ohio Edison merger with Centerior Energy, Pipitone was appointed as Transition Manager. Pipitone was elected to his current position in 1997.

Jeff Miller, 51, is a partner of The Beacon Group. Beacon is a private investor group that manages funds totaling billions of dollars across industries in which they have special knowledge, including energy, financial services, information distribution and technology, healthcare, and consumer products and services.

Prior to the formation of The Beacon Group in 1993, Miller spent 14 years at Goldman, Sachs & Co. where he was a vice president in the Structured Finance Group. Miller had global responsibility for coverage of the independent power industry, asset-backed power generation, and oil and gas financing. In addition to specialized expertise in power generation, Miller has a broad background in investment banking, including corporate finance, private placements, project finance, mergers and acquisitions, leveraged leasing, tax-exempt financing and principal investments.

Marty Mearhoff, 43, is vice president of Renewable Energy and Advanced Technologies at AEP. AEP is a multinational energy company and one of the nation's largest generators of electricity with more than 38,000 megawatts of generating capacity and delivering electricity to more than 4.8 million customers in 11 states.

Mearhoff has more than 20 years of experience in utility operations and has held key management positions in AEP's power generation organization. Beginning his career with AEP in 1979 in plant engineering, Mearhoff held several engineering management positions within the mechanical engineering division prior to being named head of AEP's Environmental Engineering Services Department in 1993. In 1997, Mearoff was named head of AEP's Electrical and Mechanical Engineering division. Most recently, Mearhoff was vice president of Electrical/Mechanical Engineering for AEP Pro Serv, Inc., the company's professional services organization providing services to AEP's power plants and third parties.

"The addition of Guy Pipitone, Jeff Miller, and Marty Mearhoff as directors adds tremendous depth and breadth to Powerspan's board. Their contributions will be vital as we complete development and prepare for full-scale commercial delivery of ECO systems on coal-fired power plants," said Frank R. Alix, Powerspan Corp. chairman and CEO. Powerspan's patented Electro-Catalytic Oxidation^TM (ECO) technology applied to coal combustion systems provides the functionality of four separate air emission control technologies in a single integrated system and produces valuable byproducts that become the feedstock for other industrial processes.

Pipitone, Miller, and Mearhoff join current board members Gordon B. Baty, managing director of Zero Stage Capital—a leading regional venture capital firm based in Cambridge, MA; Dean Kamen, president and owner of DEKA Research & Development Corporation—a Manchester, NH, based company specializing in advanced technologies in medical equipment; Morton E. Goulder who is involved with numerous venture capital and angel investments; and Frank R. Alix, chairman and CEO of Powerspan Corp.

About Powerspan Corp.
Powerspan Corp. is engaged in the development and commercialization of innovative, proprietary energy technology for the global electric power industry. The Company is a pioneer in building cost effective and timely solutions for the existing power generating base. Company research and development efforts focus on unique applications of its proprietary electrotechnology to air emission control and water disinfection. Powerspan offers technology solutions to address the competitive needs of the new energy economy. More information on Powerspan is accessible at www.powerspancorp.com.

Powerspan Corp.
Contact: Stephanie Procopis, Director of Marketing
Phone: (603) 859-2500, ext. 20
Fax: (603) 859-2501
Email:sprocopis@powerspancorp.com
www.powerspancorp.com