SOURCE: MagneGas Corp.

MagneGas Corp.

February 01, 2011 09:00 ET

MagneGas Launches New Local Direct-Sale Platform

Evolved Strategy Intended to Optimize Margins and Reduce Payment Time

TAMPA, FL--(Marketwire - February 1, 2011) - MagneGas Corporation ("MagneGas" or the "Company") (OTCBB: MNGA), the producer of a technology that converts liquid waste into a hydrogen-based metal working fuel and natural gas alternative, announced today that it launched its new local direct-sale platform, empowering MagneGas to secure and service its own accounts within a 200-mile radius of Company headquarters. MagneGas will sell its clean fuel at retail prices, thereby commanding larger margins in the local market than it could in selling wholesale to distributors. Furthermore, by eliminating the intermediary in these cases the Company can reduce the time to final payment receipt and accelerate new customer acquisition. The Company also plans to partner with a large national distributor and will sell locally through this distributor as warranted, allowing for parallel growth opportunities.

"This is a leap forward in the evolution of our business platform," stated President Scott Wainwright. "The greater local market has remained largely untapped as we have historically relied on distributors to sell and service customers. By assuming control we can best communicate the unique benefits of MagneGas™, pursue new accounts according to our own aggressive timeline and achieve margins potentially 2 - 4 times higher than at wholesale. We are in conversation with multiple potential customers and we look forward to communicating our progress as we secure agreements."

MagneGas has secured Department of Transportation authorization to deliver directly. The Company will continue to sell through distributors outside of this 200-mile radius, and is also exploring creating satellite production capability with established fuel manufacturers.

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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 that can be made from industrial, municipal, agricultural and military liquid wastes following the receipt of appropriate governmental permits.

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 working, cooking, heating, powering bi fuel automobiles and more.

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