SOURCE: MagneGas Corp.

MagneGas Corp.

March 16, 2010 09:00 ET

MagneGas China Deal: $950,000 Received Toward $1.9 MM Purchase Order

Also Secures LOI for $2.0 MM Direct Investment and 20% Grant of China Joint Venture Co.

TAMPA, FL--(Marketwire - March 16, 2010) -  MagneGas Corporation ("MagneGas" or the "Company") (OTCBB: MNGA), a producer of a metal working fuel and natural gas alternative made from liquid waste, announced today that it has evolved definitively beyond pre-revenue with the Phase 1 culmination of its China initiative. On March 8th MagneGas received $950,000 toward the $1.9 MM purchase of a Plasma Arc Flow™ Refinery. This represents the largest revenue event in the Company's history to date.

In addition, Beijing-based purchaser DDI Industry International ("DDI") signed a Letter of Intent ("LOI") to acquire the exclusive MagneGas™ Technology and manufacturing rights for the Greater China market (Phase 2). As compensation DDI would directly invest $2.0 MM in MagneGas Corp. DDI would create a new China-based Joint Venture company ("MagneGas China") to house and administer the rights. DDI would seek to take this Joint Venture company public in the Asian market in the future. DDI would grant to MagneGas Corp. 20% of MagneGas China, giving the Company and its investors a significant and perpetual share of China market operations. MagneGas CEO Dr. Ruggero Santilli would receive a full voting seat on the MagneGas China Board of Directors.

"We have now booked real revenue, established concrete precedent for additional equipment sales, planted a solid footprint in China and leapt closer to a business-changing equity investment," stated MagneGas President Richard Connelly. "From a macro perspective, we believe our recent achievements have taken MagneGas from a great idea to a budding practical success. This purchase order and pending LOI elevate MagneGas to a different plane -- to a clean tech story converting promise to dollars."

Per the terms of the purchase agreement, DDI must inspect and approve the Refinery before the firm is obligated to pay the remaining $950,000. However, it may not take possession of the Refinery until MagneGas has received this final one-time payment.

Per the terms of the LOI, DDI has until June 30, 2010, with an option to extend the deadline for an additional 6 months, to complete at-once and in-full its intended $2.0 MM investment in the Company; if it does not do so before that date the LOI is rendered void and MagneGas Corp. retains exclusive MagneGas™ Technology and manufacturing rights to the Greater China market (i.e. Mainland China, Taiwan, Hong Kong, Singapore and Macao). Should DDI complete this investment it would also receive a seat on the Company's Board of Directors.

To be added to the MagneGas investor email list, please email justin.davis@cirrusfc.com with MNGA in the subject line.

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 or powering bi fuel automobiles.

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