SOURCE: XcelPlus International

July 31, 2006 14:55 ET

Governor of Minnesota Supports FlexTek Testing

ST. PAUL, MN -- (MARKET WIRE) -- July 31, 2006 -- Minnesota Gov. Tim Pawlenty (R) asked the Environmental Protection Agency July 24 to consider using Minnesota as a test site for FlexTek E-85 fuel conversion kits.

Pawlenty's letter to EPA Administrator Stephen L. Johnson states that testing FlexTek could provide emissions benefits while also expanding the use of ethanol fuel. By increasing the number of cars using E85 FlexTek is likely to benefit Minnesota's economy, and Governor Pawlenty said he wants to offer tax breaks for low and moderate income families who want to convert their vehicles to run on ethanol. Both the University of Minnesota and Minnesota State University at Mankato (Minn.) have departments that study alternative fuel, and the state has the ability to perform research on tailpipe emissions from E-85-converted vehicles. Minnesota is offering these resources to the EPA.

The Governor's comments were broadcast in a July 21st CBS newscast about the FlexTek conversion. The newscast, which aired on WCCO in Minneapolis, can be viewed at http://wcco.com/local/local_story_202091258.html. In addition to the Governor, the news broadcast also featured Minnesota Congressman James Oberstar, the ranking Democrat on the House Transportation Committee. "We are the largest ethanol producer. We've lead the nation in the ethanol issue. It would be a logical next step to lead the country in conversion," said Congressman Oberstar, who has agreed to take the lead. Oberstar is arranging for state leaders to meet with Xcelplus to discuss the conversion technology and bring results to the EPA.

The FlexTek was also the subject of recent NBC and FOX network newscasts. According to Bill R. Smith, President of XcelPlus International, Inc. (PINKSHEETS: XLPI), "In addition to Governor Pawlenty and Congressman Oberstar, our lobyist has been in touch with the offices of Senator Thune of South Dakota and Senator Talent of Missouri. We are very excited at the political support and media attention our products are now getting as we pursue EPA certification and legislative action."

About XcelPlus International:

XcelPlus International Inc. manufactures and markets E85 Conversion Systems, Ethanol Fuel Products, and Specialty Chemicals which enable the growth of the ethanol market, while providing consumers with a viable means of using newly developed clean energy technologies.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the forward-looking matters discussed in this news release are subject to certain risks and uncertainties which could cause the Company's actual results and financial condition to differ materially from those anticipated by the forward-looking statements including, but not limited to, the Company's liquidity and the ability to obtain financing, the timing of regulatory approvals, uncertainties related to corporate partners or third-parties, product liability, the dependence on third parties for manufacturing and marketing, patent risk, copyright risk, competition, and the early stage of products being marketed or under development, as well as other risks indicated from time to time in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

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