SOURCE: MagneGas Corp.

MagneGas Corp.

January 20, 2010 09:00 ET

MagneGas Extends China Purchase Order Option Due to Strong Mutual Interest

Equipment Purchase Exclusivity Period Extended to February 15, 2010

TAMPA, FL--(Marketwire - January 20, 2010) - MagneGas Corporation ("MagneGas" or the "Company") (OTCBB: MNGA), a producer of a metal working fuel and natural gas alternative made from liquid waste, announced on December 2, 2009 that it had entered into a Letter of Intent ("LOI") with Beijing-based DDI Industry International ("DDI"), granting DDI the exclusive option to purchase equipment, and China market distribution and manufacturing rights, for $5.0 million plus equity in a publicly traded Hong Kong company. The exclusivity period was originally scheduled to conclude January 15, 2010. However, due to the complexity of the arrangement and DDI's continued interest in exercising the option, MagneGas has extended the deadline to February 15, 2010.

The extension gives DDI the opportunity to send a three-person delegation to visit with MagneGas management from January 27 - 29 to finalize the contracts and share with others in the DDI organization the technology's operation.

To view the original announcement, please visit:

"We are quite pleased to offer DDI this extension," stated MagneGas President Rich Connelly. "Their request for more time in order to conduct a site visit indicates a sincere commitment to exploring the purchase order option, and we firmly believe that, when experienced in person, the power of the technology speaks for itself. We are confident that our two groups will use this opportunity to reach a mutually beneficial outcome."

After February 15, 2010, MagneGas has full unobstructed rights to initiate direct sale of MagneGas™ to China and to transfer Intellectual Property rights for China to any entity of the Company's choosing. This is the final extension that will be granted on DDI's purchase order option.

The Company can make no assurance as to the final outcome of the negotiations with DDI or whether they will indeed reflect the terms of the original LOI.

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About MagneGas Corporation (

Founded in 2007, Tampa-based MagneGas Corporation (OTCBB: MNGA) is the producer of MagneGas™, a natural gas alternative and metal working fuel made from liquid waste such as sewage, sludge, manure and certain industrial and oil based liquid wastes. The Company's patented Plasma Arc Flow™ process gasifies liquid waste, creating a clean burning fuel that is essentially interchangeable with natural gas, but with lower green house gas emissions. MagneGas™ can be used for metal cutting, cooking, heating or powering bi fuel automobiles.


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