SOURCE: MagneGas Corp.

MagneGas Corp.

September 30, 2010 09:00 ET

MagneGas Receives $150,000 for Interim Mexico Distribution Rights

Non-Recourse Payment Signals Potential Mexico Market Entrance

TAMPA, FL--(Marketwire - September 30, 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 entered into a non-binding Memo of Understanding ("MOU") with Inmobiliaria Grupo Corporativo S.A. de C.V. ("IGC"). Pursuant to the MOU, IGC states its intention to purchase a 100 kW or greater Refinery and exclusive distribution rights for the Mexico market for an initial five-year period from the Company, and IGC has paid MagneGas $150,000 for a six-month period of market exclusivity. This option expires on February 28, 2011. If IGC exercises its option that payment will apply to the Refinery purchase price; the payment is non-refundable if IGC does not exercise the option.

As MagneGas President Richard Connelly explains, "Mexico currently suffers from a significant housing shortfall. In response, major home builders are rapidly creating high density communities of free-standing units that can number in the thousands. Each community is required to have one wastewater facility per a set number of units. IGC intends to sell refineries to these builders to replace traditional facilities, mitigating an environmental concern and providing clean fuel and sanitized water for community use.

"We have been very impressed by IGC, both for the potential of their business model and the quality of their management team. We are working on designing a refinery to meet their specific need. Assuming we are successful in doing so, we believe IGC represents the perfect partner and platform to capitalize on the Mexico market opportunity."

If MagneGas is not able to provide custom pricing specifications by February 28, 2011, the Company will extend the option for the earlier of six months or delivery of the pricing specifications.

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

Become a MagneGas fan and follow the Company on Facebook -- visit www.facebook.com/MagneGas.

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.

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act. 

Contact Information