SOURCE: Market Pulse

June 16, 2009 08:30 ET

Market Pulse Breaking News Alert for Tuesday, June 16, 2009: MNGA -- MagneGas Announces Agreement to Begin Commercial Sale of MagneGas™ Fuel as It Enters Into the $680 Million Metal Cutting Fuel Market!

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

ATLANTA, GA--(Marketwire - June 16, 2009) - Market Pulse News Alert for this AM, Stocks to Watch are: MagneGas Corporation (OTCBB: MNGA), Jazz Pharmaceuticals Inc. (NASDAQ: JAZZ), SpongeTech Delivery Systems Inc. (OTCBB: SPNG) and American Capital Ltd. (NASDAQ: ACAS).

Investors need to be watching MagneGas Corporation (OTCBB: MNGA) this AM! MagneGas Corporation 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 recently signed an agreement to purchase 12.5% of India-based Jeruz MagneGas, Pvt. Limited, the exclusive licensee of the MagneGas™ Technology for India, Pakistan, Bangladesh and Sri Lanka. As part of the transaction, MagneGas Corporation has also secured the rights to 5% royalties on all eventual sales of MagneGas™ equipment manufactured by Jeruz. 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. The test successfully converted city sludge to MagneGas™ fuel and provides the template for a national roll-out. 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 begun inroads into the $680 million metal cutting fuel market through a fuel distribution agreement with Florida-based Crumpton Welding Supply! Investors should be watching this one closely!

MagneGas Corporation (OTCBB: MNGA), a producer of a metal cutting fuel and natural gas alternative made from liquid waste, announced today that it has begun inroads into the $680 million metal cutting fuel market through a fuel distribution agreement with Florida-based Crumpton Welding Supply ("Crumpton").

Crumpton will immediately begin selling MagneGas™, created from non-hazardous liquid waste, to their 4,500 customers through their offices in Tampa, St. Petersburg, Auburndale and Port Charlotte. MagneGas™ exceeds all EPA air emission requirements and is a new green fuel technology for this market. Crumpton will submit purchase orders based on customer demand and sufficient to maintain inventory at each if its four distribution centers; it has already placed its first order to begin MagneGas™ market introduction.

"We are very pleased to begin our efforts into the $680 million(1) metal cutting and welding fuel market with a distributor like Crumpton," stated MagneGas President Richard Connelly. "A family-owned business celebrating its 49th year, they pride themselves on their industry expertise and are committed to promoting new green technologies. We feel it is the perfect firm to introduce to established customers an innovative green product like MagneGas™."

"On the strength of these merits we will take a very active approach to educating and converting Crumpton's existing 4,500 customers. MagneGas will partner with Crumpton's inside sales team to personally demonstrate the value of our product to each customer, and we will attend each Crumpton Open House to further cement our presence. We are confident that we can make immediate progress in this market, and using this as a test case we can stage a roll out of learned best practices to the national metal cutting market."

Charlie Crumpton, President of Crumpton Welding Supply stated, "By including MagneGas™ in our portfolio we are now able to offer our clients and our expanding customer base a true green gas technology that we have never seen before in the welding gas arena. We look forward to increased sales results by promoting the benefits of this technology to our entire marketplace."

This is the fifth potential revenue channel MagneGas has opened in the last 90 days. It also previously announced:

--  The receipt of a $1.2 MM purchase order and launch of the Philippines
    and Vietnam markets
--  The acquisition of rights to MagneGas™ Technology in Israel
--  The acquisition of rights to MagneGas™ Technology in India, Pakistan
    and neighboring countries
--  An equipment sales agreement across much of the U.S. Mid-Atlantic
    region
    

(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 cutting 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. To learn more, visit www.magnegas.com.

Stocks in the news and acting well as of late include: Jazz Pharmaceuticals Inc. (NASDAQ: JAZZ), SpongeTech Delivery Systems Inc. (OTCBB: SPNG) and American Capital Ltd. (NASDAQ: ACAS).

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