Xebec Adsorption Inc.

Xebec Adsorption Inc.

September 30, 2008 23:59 ET

QuestAir signs supply agreement with Phase 3 Developments for biogas market

BURNABY, BC, Sept. 30 - QuestAir Technologies Inc. ("QuestAir" or
"the Company"; AIM: QAR; TSX: QAR) announced that it has signed an agreement
to supply its methane purification products to Phase 3 Developments and
Investments, LLC ("Phase 3 Renewables"), a leading US supplier of integrated
plants that produce renewable pipeline or vehicle fuel grade methane from
biogas. The agreement has an initial term of four years.

Under the terms of the supply agreement, QuestAir's methane pressure
swing adsorption ("PSA") systems will be integrated into Phase 3's biogas
upgrading systems, which are supplied to developers and owners of projects
that produce biogas from agricultural and municipal wastes or to gas utilities
operating natural gas grids.

"We are delighted to formalize our relationship with Phase 3 Renewables,
which has been a valuable partner for QuestAir," said Andrew Hall, President
and CEO of QuestAir. "This supply agreement supports our strategy of expanding
our reach in the biomethane market, by working with market leaders in key
geographies. Phase 3 Renewables has demonstrated an excellent track record in
supplying cost effective solutions to both single and multi-farm biogas

QuestAir's gas purification technology uses a proprietary process to
recover clean natural gas from biogas, an energy source generated from organic
wastes at facilities such as landfills, sewage treatment plants and farms.

Norma McDonald, Owner and Operating Manager of Phase 3 Renewables said,
"Over the past two years we have worked with QuestAir's PSAs as a key
component of our fully integrated biogas upgrading systems. QuestAir's units
have been reliable and robust, and easy to operate."

"The market for biogas upgrading is expanding rapidly in North America.
With electricity selling rates as low as $0.025 per kilowatt hour in many
areas in the US, it is difficult for farm-based biogas plants to economically
justify electricity generation from biogas. As an alternative to electricity
generation, Phase 3 Renewables has developed a biogas upgrading option which
allows even small sites to cost-effectively produce pipeline or vehicle-fuel
grade methane from biogas. Using QuestAir's PSAs, our standardized product
offering can easily meet the quality specifications of natural gas utilities,"
McDonald said.

About QuestAir Technologies Inc.

QuestAir Technologies, Inc. is a developer and supplier of proprietary
gas purification systems for several large international markets, including
biogas production, natural gas processing and oil refining. QuestAir is based
in Burnaby, British Columbia and its shares trade on the AIM Market of the
London Stock Exchange Plc. and on the Toronto Stock Exchange under the symbol

About Phase 3 Renewables

Phase 3 Renewables provides services to agricultural customers related to
renewable energy and bio-based products. Services include financing and grant
application preparation, business and technical feasibility studies, marketing
of renewable energy and bio-based products, including emission credits. As a
project developer, Phase 3 Renewables assists clients in the selection of
vendors, equipment procurement, as well as the associated mechanical,
electrical and controls engineering required to integrate individual pieces of
purchased equipment or equipment modules. Clients may also benefit from Phase
3 Renewables' construction project management and commissioning services,
including coordination with permitting agencies. Phase 3 Renewables is a
registered Ohio company, and qualifies as a small, women and veteran-owned

Forward Looking Statements

Certain statements in this press release may constitute "forward-looking"
statements which involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the
Company, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. When used in this press release, such statements
use such words as "anticipate", "believe", "plan", "estimate", "expect",
"intend", "may", "will" and other similar terminology. These statements
reflect current expectations regarding future events and operating performance
and speak only as of the date of this press release. Forward-looking
statements involve significant risks and uncertainties, should not be read as
guarantees of future performance or results, and will not necessarily be
accurate indications of whether or not such results will be achieved. A number
of factors could cause actual results to differ materially from the results
discussed in the forward-looking statements.

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Contact Information

  • QuestAir Technologies Inc.
    Andrew Hall
    Phone:(604) 453-6967
    Email: hall@questairinc.com
    Sherry Tryssenaar
    Phone: (604) 453-6902
    Email: tryssenaar@questairinc.com
    UK media contact:
    Charles Ryland or Ben Willey
    Buchanan Communications
    Phone: +44 (0) 20 7466 5000
    Canadian media contact:
    Ian Noble
    Karyo Communications
    Phone: (604) 623-3007