SOURCE: Save the World Air

August 07, 2006 08:00 ET

Save the World Air, Inc. Converts $2.6 Million Outstanding Debt to Equity

LOS ANGELES, CA -- (MARKET WIRE) -- August 7, 2006 -- Save the World Air, Inc. (OTCBB: ZERO) today announced that 100% of the holders of the company's 9% convertible notes due July 31, 2006 have voluntarily converted their notes into shares of common stock of the company. An aggregate $1,501,378 principal amount of notes were converted into 2,144,826 shares of common stock, at a previously-established conversion price of $0.70 per share. In addition, accrued interest in the aggregate amount of $3,713 was converted by certain noteholders into 5,304 additional shares of common stock.

Previously, 100% of the holders of the company's 9% convertible notes due May 31, 2006 voluntarily converted their notes into shares of common stock of the company. An aggregate $1,075,000 principal amount of these notes were converted into 1,535,715 shares of common stock, at a previously-established conversion price of $0.70 per share.

"The decision by all of our noteholders to voluntarily convert their debt into shares of stock is a vote of confidence in our company," commented CEO Eugene E. Eichler. "This also strengthens our balance sheet and improves our liquidity, by allowing us to deploy the cash that we otherwise would have used to repay the notes to the further development and growth of our company."

About Save the World Air, Inc.

Save the World Air, Inc. is currently engaged in the product development, initial sales and marketing of devices using proprietary technologies that can be installed on motor vehicles, motorcycles and stationary engines to reduce harmful emissions caused by internal combustion engines, as well as improve fuel efficiency and/or improve performance. The company's patented ZEFS™ devices have been shown to reduce harmful emission, improve both fuel efficiency and enhance engine performance in repeated independent laboratory testing. The company's patent-pending CAT-MATE® devices have been shown to reduce harmful emissions in repeated independent laboratory testing. For more information, visit the company's website at www.stwa.com.

Safe Harbor Statement

The statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, the company's filings and future filings with the Securities and Exchange Commission, including those set forth in the company's Annual Report on From 10-KSB for the year ended December 31, 2005.

Contact Information

  • Contact:
    Bruce McKinnon
    President
    Save the World Air, Inc.
    (818) 487-8000
    Email Contact

    or

    CCG Investor Relations
    Leslie J. Richardson
    310-477-9800 x122
    Email Contact