ZE-GEN AWARDED $500,000 SEED FUNDING
BY MASSACHUSETTS RENEWABLE ENERGY TRUST

Cleantech company to apply funds to New Bedford pilot plant

Boston, MA – September 19, 2006 – Ze-gen, Inc., a Boston-based, privately-held company providing advanced gasification technology to convert industrial and municipal waste streams into synthetic natural gas and low emissions electrical energy, announced today that it has accepted $500,000 in Sustainable Energy Economic Development (SEED) financing from Massachusetts Technology Collaborative's (MTC) Renewable Energy Trust. In conjunction with a recently announced Series A financing event led by Massachusetts Technology Development Corporation (MTDC), this funding will be used to help the company construct and operate a proof-of-concept facility in New Bedford, MA.

"The fast growing cluster of clean energy companies in Massachusetts is creating new economic opportunity and developing new technologies that will help us tap clean, renewable sources of energy," said Trust Director Warren Leon. "Making targeted investments in companies like Ze-gen helps to strengthen this important cluster while sending a strong message that Massachusetts values and supports innovation at clean energy businesses throughout the state."

"MTC's Renewable Energy Trust has played a huge role in our progress to date. Their vote of confidence has helped bring together an array of other funders. With this support we intend to complete development of our proof of concept facility in early 2007," commented Bill Davis, Ze-gen's President and CEO.  

About Ze-gen, Inc.
Ze-gen was formed in mid-2004 in order to develop and deploy efficient gasification systems that convert municipal solid waste (MSW) and construction and demolition waste (C&D) into clean energy. The reasons to do so are compelling:

• In the United States alone over 350 million tons of MSW and C&D are created each year, with 300 million tons ending up in landfills. Once there, this waste converts into approximately 580 million tons of CO2-equivalent greenhouse gas, of which 50% is methane, a substance 22 times more harmful to the environment than CO2 itself

• Landfills are the largest man-made source of methane gas emissions and account for over 8% of total greenhouse gas generation

• Ze-gen represents a non-incineration based opportunity to create clean power with a virtually limitless supply of free fuel

About the Renewable Energy Trust
MTC administers the Renewable Energy Trust, which was established to generate the maximum economic and environmental benefits from clean energy resources for the Commonwealth. The Trust is an essential part of the state's strategy to build a cleaner, more secure energy future by encouraging the use of renewable resources such as wind, solar, hydroelectric, biomass, fuel cells and landfill gas. Please visit the agency's website www.masstech.org for more information.