For Immediate Release

Powerspan Closes $20 Million in New Financing

NEW DURHAM, N.H., August 13, 2003 — Powerspan Corp., a clean energy technology company, announced the first closing of $20 million in new financing from a group of investors including The Beacon Group, FirstEnergy Corp., Zero Stage Capital, NGEN Partners LLC, Aquilex Services Corp., and Calvert World Values International Equity Fund.

The new funding will be used to complete commercial development of the Company's patented Electro-Catalytic Oxidation (ECO^®) technology—a cost-effective, multi-pollutant control technology for existing and new coal-fired power plants. The ECO process provides the functionality of three, separate, air pollution control technologies in an integrated system and produces a commercial fertilizer co-product that avoids landfill disposal of waste.

"This new funding allows the Company to complete our first commercial-scale installation of ECO. After successful commercial deployment of ECO, power generators will have a lower cost option to achieve air emission reductions required under the Clean Air Act," said Frank Alix, chairman and CEO of Powerspan Corp.

Steven E. Parry, a partner with NGEN Partners added, "We consider Powerspan as one of the most exciting investment opportunities this year. The team, the strong corporate partners, and market interest in the ECO technology all supported our decision to join the current financing round."

Powerspan is now constructing a 50 megawatt ECO commercial demonstration system at FirstEnergy's R. E. Burger Plant near Shadyside, Ohio, which will provide the design, performance, and reliability information needed to install ECO systems on existing coal-fired power plants. In addition to Powerspan, FirstEnergy and the Ohio Coal Development Office within the Ohio Air Quality Development Authority are providing funding for the project.

About Powerspan
Powerspan Corp., a clean-energy technology company based in New Durham, N.H., is engaged in the development and commercialization of proprietary multi-pollutant control technology for the electric power industry.

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Powerspan Corp.
Stephanie Procopis
Director of Marketing
Phone: (603) 859-2500, ext. 20
Email: sprocopis@powerspan.com