SOURCE: MagneGas Corp.

MagneGas Corp.

September 01, 2010 16:30 ET

MagneGas Announces Shipment of China Refinery, Receipt of Final $855,000

Process to Commercialize MagneGas™ Technology in China Now Officially Underway

TAMPA, FL--(Marketwire - September 1, 2010) -  MagneGas Corporation ("MagneGas" or the "Company") (OTCBB: MNGA), a producer of a metal working fuel and natural gas alternative made from liquid waste, today announced that it has shipped the China Refinery to purchaser DDI, satisfying all terms of the sale. The Company has accordingly now received the final payment of $855,000, pursuant to the agreement entered into on January 29, 2010.

"We have executed shipment of the China Refinery precisely according to schedule, and are pleased to announce another important revenue event for MagneGas," stated MagneGas President Richard Connelly. "In addition to the immediate financial benefit to the Company, this milestone also has significant long-term importance. With its Refinery in-hand, DDI will be able to demonstrate the Technology in the China market and begin to capitalize on anticipated demand. DDI has already established a world class manufacturing facility, and awaits only this Refinery as the catalyst for market launch. As 20% owners of this joint venture we look forward to sharing in future China successes."

To view the final processing and shipment of the China Refinery, visit http://ir.stockpr.com/magnegas/refinery.

Per the original agreement the final payment was to be in the amount of $950,000. MagneGas and DDI mutually agreed to exclude a certain third-party component from the final shipment, as DDI believes it can purchase the component more cost-effectively in China. As MagneGas intended to pass its own purchase cost on to DDI without markup, the exclusion of this component reduced the payment amount but not the profitability of the transaction. 

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About MagneGas Corporation (www.magnegas.com)
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, powering bi fuel automobiles and more.

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