Digital Gas, Techno Rubber enter agreement

Detroit, Michigan -- Digital Gas Inc., a New York-based financier of

innovative energy and natural resource projects, has signed an

agreement with tyre recycler Techno Rubber Inc. to expand Techno

Rubber´s Detroit facility to 4000 sq. m. from the current 1000.

Under the plan, Digital Gas will give

Techno Rubber's owners a $2.5 million promissory note for the purchase

of land, buildings and equipment for the expansion.

Under Phase One of the agreement, Techno

Rubber -- which currently processes about 1 million scrap tyres

annually -- will expand to a 3 million-tyre facility as early as

December 2006 at a cost of approximately $500 000.

Phase Two will see Techno Rubber change

from a tyre chipping plant to a hydrocarbon recovery facility with an

annual capacity of 7 million tyres, according to a Digital Gas press

release. This marks the first time Digital Gas has invested in a scrap

tyre project, according to acting director Brian Smith.