SOURCE: Market Pulse

October 01, 2009 08:30 ET

Market Pulse Breaking News Alert for Thursday, October 1, 2009: MNGA -- MagneGas Continues Execution With Third Fuel Distributor Agreement Within the $680 Million Metal Cutting Fuel Market!

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Market Pulse.

ATLANTA, GA--(Marketwire - October 1, 2009) - Market Pulse News Alert for this AM, Stocks to Watch are: MagneGas Corporation (OTCBB: MNGA), Discovery Laboratories Inc. (NASDAQ: DSCO), TAMM Oil & Gas Corp. (OTCBB: TAMO) and American Superconductor Corporation (NASDAQ: AMSC).

MagneGas Corporation (OTCBB: MNGA) is the producer of MagneGas™, a natural gas alternative and metal cutting fuel made from liquid waste such as sewage, sludge, manure and certain industrial and oil based liquid wastes. The company's patented technology 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. The metal cutting market provides immediate sales opportunities. The technology is based in flowing the liquid waste through a submerged electric arc between coal electrodes. The arc decomposes the liquid molecules into atoms and forms a plasma around the tips of the electrodes at about 10,000° F to create MagneGas and other useful byproducts. Preliminary analysis has shown that the power generated from Wind Turbines has the ability to create a fuel through the Plasma Arc Flow refinery. MagneGas Corporation is currently seeking to form partnerships with existing Wind power companies to further explore the synergies of the two processes. MagneGas Corporation also recently announced that it had received a request from the city of Dunedin, Florida to conduct on site plant scale testing to convert municipal bio-solids into fuel. A preliminary test converted city sludge to MagneGas™ fuel. As a result, the city has requested plant scale testing which will provide the template for a national roll-out upon completion. MagneGas Corporation has taken an important commercial step forward with the signing of its first manufacturer's rep agreement. The agreement with Pennsylvania-based George KELSO Company, LLC immediately opens an equipment sales channel to much of the Mid-Atlantic Region, including southern New Jersey, eastern Pennsylvania, Maryland, Delaware, Washington D.C. and its five surrounding counties. KELSO Company's first goal is to locate grant funding to establish a MagneGas demonstration center in their territory converting Sewage or Sludge to MagneGas. MagneGas Corporation consists of Nobel Prize-nominated scientific leadership that is coupled with decades of industrial/specialty gas distribution expertise. MagneGas Corporation is poised to become a significant player in the $680 million metal cutting market! MNGA just had excellent news out in a press release before today's opening bell announcing that it has grown its footprint within the $680 million metal cutting fuel market through its third distribution agreement, this one with Tennessee-based Holston Gases ("Holston") (www.holstongases.com)! This could be great news for investors!

MagneGas Corporation (OTCBB: MNGA), a producer of a metal working fuel and natural gas alternative made from liquid waste, announced today that it has grown its footprint within the $680(1) million metal cutting fuel market through its third fuel distribution agreement, this one with Tennessee-based Holston Gases ("Holston") (www.holstongases.com).

Holston will immediately begin selling MagneGas™, created from non-hazardous liquid waste, through its 22 locations across Tennessee, Alabama and Kentucky. Holston employs a sales force of 50 - 60 experienced sales professionals split evenly across inside and outside sales.

"We are proud to align ourselves with family-owned Holston Gases," stated MagneGas President Richard Connelly. "With a 50-year history in the Southeast, Holston has put down deep roots, and created the even deeper customer relationships that will give MagneGas™ immediate credibility as a new entrant to the market. Moreover, the breadth of their sales force should provide increased awareness in a short period of time. With this new agreement, we have extended our reach to 8 states in just 3 months."

Phil Kirby, Holston's Regional Manager, stated, "We at Holston Gases are excited to be the first to bring the green gas technology of MagneGas™ to our home market. Holston will be introducing this revolutionary metal working gas to our existing customer base, while expanding to competitive accounts to ensure full distribution and cement a successful marketing partnership with MagneGas Corp."

(1) Source: Company estimate

About MagneGas Corporation

Founded in 2007, Tampa-based MagneGas Corporation 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.

Stocks in the news and acting well as of late include: Discovery Laboratories Inc. (NASDAQ: DSCO), TAMM Oil & Gas Corp. (OTCBB: TAMO) and American Superconductor Corporation (NASDAQ: AMSC).

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