SOURCE: NewGen Technologies, Inc.

January 30, 2006 08:00 ET

NewGen Positioned to Commence Operations: Acquires Three Fuel Terminals

Completes $5 Million Capital Raise

CHARLOTTE, NC -- (MARKET WIRE) -- January 30, 2006 -- NewGen Technologies, Inc. (OTC BB: NWGN) today announced that its U.S. subsidiary, ReFuel America, has completed the purchase of three fuel terminals located on the Colonial and Plantation pipelines from Crown Central LLC. The terminals, with a total storage capacity of over 10 million gallons and an annual throughput capacity of more than 500 million gallons, will be used for the storage and distribution of alternative fuels, including biodiesel and ethanol blends, as well as traditional hydrocarbons. Two of these terminals, located in Charlotte, North Carolina and Spartanburg, South Carolina, are expected to be operational by the second quarter of 2006, with the Columbus, Georgia location scheduled to come on line in the fourth quarter.

Concurrently, NewGen announced that it has raised $5 million in financing through the sale of convertible debentures with an accredited investor. Complete details of the financing and its terms will be set forth in a Current Report on Form 8-K to be filed with the SEC.

S. Bruce Wunner, NewGen's Chairman and CEO, stated, "The purchase of these terminals is a very significant achievement for NewGen -- allowing us to process, blend, and store our proprietary biodiesel and ethanol products, the first step towards becoming a leading global supplier of premium biofuels. ReFuel America will begin by blending and distributing biodiesel currently available on the market, after which we intend to use the terminals for our own biofuels once production facilities are up and running. This step-by-step approach provides for rapid market growth, as we move to meet the increasing demand for biofuels driven by greater fuel efficiency, cleaner exhaust, and the need for energy independence."

About NewGen Technologies, Inc.

NewGen's mission is to be a leading manufacturer, processor and distributor of premium biofuels that are intended to dramatically reduce the ecological and economic impact of world petroleum use. NewGen believes that it has developed the cleanest burning and highest performing fuels in the world by utilizing technology that allows for more complete combustion, which NewGen believes will result in improved miles per gallon and significantly decreased harmful emissions, including reduced carbon monoxide, carbon dioxide, nitrous oxides, particulates and black smoke. The company's fuel products include proprietary and complex technology, substantially and predominantly derived from petroleum sources, which are intended to improve the performance of gasoline and diesel fuels, as well as domestically produced and environmentally friendly alternative fuels such as Ethanol-based E85 and Biodiesel-based B20. The vision of NewGen and ReFuel America, NewGen's wholly owned U.S. subsidiary, is a world less dependent on oil, using secure, homegrown fuels which better preserve our most important resources -- the air we breathe and water we drink.

Additional information can be found at the company's website

Safe Harbor Statement Under the Private Securities Litigation Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of NWGN and PRL could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.

Contact Information

  • Media Contact:
    Blois Olson
    New School Communications, Inc.
    (651) 221-1999

    Investor Contact:
    Jody Burfening / Chris Witty
    Lippert/Heilshorn & Associates, Inc.
    (212) 201-6609

    NewGen Technologies, Inc.
    6000 Fairview Road
    12th Floor
    Charlotte, NC 28210
    (704) 552-3590