Contact: Bernice Song, telephone: 650-325-0121, Email: bernice@h2oil.com

CHINA LOOKS TO ADOPT 21ST CENTURY FUEL ADDITIVE FOR ENERGY CONSERVATION AND AIR POLLUTION PROBLEMS
H2OIL Corporation Signs Joint Venture Agreement with Chinese Government

Hayward, California, September 27, 2004--H2OIL Corporation recently signed a joint venture agreement with PetroChina's Tianjin Huafu Oilfield Chemicals Company for a 1,500 tonne/year production facility for local manufacture of H2OIL's proprietary nanotechnology fuel additive F2-21, a unique product developed over years of research which substantially improves fuel economy and reduces exhaust emissions.

The agreement follows the Chinese government's decision that using F2-21 was the fastest, simplest and most cost effective way to reduce the need to import large quantities of crude oil while improving urban air quality by reducing vehicle exhaust emissions. The resulting significant reduction in vehicle CO2 emissions (up to 20%) could also substantially reduce the threat of global warming.

Under the agreement, PetroChina's Huafu will own and operate the production facility with H2OIL providing technical support and critical nanotechnology manufacturing equipment. The initial plant will produce enough F2-21 additives to make 4 billion gallons of nanotech gasoline and nanotech diesel fuels a year.

F2-21 fuel additive significantly reduces vehicle exhaust emissions (typically 20 to 50%), increases power (typically 5 to 10%) and improves fuel economy (typically 10 to 15%). F2-21 is easy to use, can be introduced at any point from the oil refinery to the gas station. They can be used in any climate, summer and winter. No vehicle modifications are required and it works equally well in gasoline or diesel engines of any size, type, age or emission control technology.

H2OIL Corporation was founded in Hayward, California in October 1990 and is a research and development company specializing exclusively in nanotechnology liquid fuels. H2OIL is the world leader in nanotechnology fuel/oil additives for producing nanotechnology gasoline and diesel fuels and nanotechnology engine oils. H2OIL has been developing and producing F2-21 for over 10 years. The additives are already field proven with over 10 billion miles of use in counties as technologically diverse as Japan and China. Manufacturing capacity is sufficient to meet any future demand. For more information, please visit www.h2oil.com.

Under PetroChina, Huafu is the largest oilfield chemical company in China. And PetroChina, the largest oil company in China, is engaged in a broad range of petroleum and natural gas related activities, including exploration, development and production of crude oil and natural gas, refining, transportation, storage and marketing, and import and export of crude oil and petroleum products; production and sale of chemical products; and the transmission, marketing and sale of natural gas. For more information, please visit www.petrochina.com.cn.

To purchase F2-21 technology products, please visit: natures-glory.com
For global warming concerns, please visit globalwarmingcare.com