September 20, 2007 — NanoLogix Inc., a nano-biotechnology company, says it has achieved a historical event with the first onsite generation of electricity using hydrogen gas produced from its bioreactor prototype facility at Welch Foods Inc.

The demonstration used a 5.5 kW generator converted to run on hydrogen. NanoLogix says the generator ran flawlessly on hydrogen gas produced by its hydrogen bioreactor system and powered multiple strings of 100- watt light bulbs. “To the best of our knowledge, this is the first time in history that electricity has been generated anywhere onsite using hydrogen produced through the use of bacteria to digest waste”, said Harry Diz, Department Chair and Professor of Environmental Engineering at Gannon University and NanoLogix Bioreactor Development chief.

Paul Zorzie, Welch’s Engineering Manager, stated, “Welch’s is happy to provide the site at which this groundbreaking research into generating alternative energy from waste is taking place. We look forward to the potential of building upon these developments to scale up and use this energy for our operation.”

Bret Barnhizer, Chairman and CEO of NanoLogix, says his company anticipates “potential upscaling of the Welch’s operation to commercial bioreactor status.”

“The Welch’s development, enabling conversion of sugar from their wastewater stream to produce hydrogen, has contributed immeasurably to ongoing research and development for processing other types of waste streams,” Barnhizer adds. “Linked to that development and following our business plan for expansion, in the spring of 2008 we intend to begin bioreactor construction at the Erie Wastewater Treatment Plant for the extraction of hydrogen from their protein-rich activated sludge waste stream.”