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Suite 4573

New York, NY 10048

Pure Energy Corporation and Arkenol Holdings, L.L.C.

enter into Research and Development Agreement to

Produce Blo-based Chemicals for Alternative Motor Fuel

For Immediate Release

February 12, 1997. Pure Energy Corporation, an independent alternative motor fuel company and Arkenol Holdings, a bio-refining company, are pleased to announce that they have entered into an agreement to research and develop improved production pathways and better economics for certain bio-based chemicals used by Pure Energy in its fuel. The Agreement specifies a research phase followed by the design, construction and operation of a pilot plant for Pure Energy by Arkenol.

The Companies have also signed a letter expressing interest in cooperating in the future in areas relating to the production of Pure Energy's alternative motor fuel and the manufacture of bio-based chemical ingredients of the fuel. Merrick Andlinger, President of Pure Energy Corporation stated that: "Pure Energy is excited about this agreement with Arkenol, which it believes will be the first of a number of relationships it intends to form with producers of biobased chemicals and others involved in motor fuel production, distribution and marketing.

Arkenol's President, Arnold Klann, adds that the worldwide market for bio-based chemicals and transportation fuels is significant and we are pleased to be working closely with Pure Energy in providing one of the important building blocks to the Carbohydrate Economy.

Pure Energy Corporation, based in New York City with offices in Orange County California, has the exclusive worldwide license from Princeton University to commercialize a cleaner-burning non-petroleum alternative motor fuel developed there. Princeton University has a patent pending on the fuel.

Arkenol Holdings, L.L.C. is based in Mission Viejo, California, and has developed a number of patented technologies to produce bio-based chemicals from ligno-cellulosic material, such as waste wood, paper and grasses, through concentrated acid hydrolysis.

Both companies are privately owned. Pure Energy is approximately 38.3% owned by The L.L. Knickerbocker Company, a public company, specializing in celebrity endorsed products and jewelry.

For more information contact:

   Merrick G. Andlinger, President & CEO, Pure Energy Corporation - (212) 938-6923

   Arnold Klann, President, Arkenol Holdings, L.L.C. - (949) 588-3767