PEC & ARKENOL HOLDINGS UPDATE

Thursday, February 13, 1997 8:02 AM EDT

L. L. Knickerbocker Announces that Pure Energy Corporation and Arkenol Holdings, L.L.C. Have Entered Into a Research and Development Agreement To Produce Bio-Based Chemicals for Alternative Motor Fuel

RANCHO SANTA MARGARITA, Calif., Feb. 12 /PRNewswire/ -- The L. L. Knickerbocker Company, Inc. announced today that Pure Energy Corporation ("PEC"), an independent alternative motor fuel company, and Arkenol Holdings, L.L.C. ("Arkenol"), a bio-refining privately-held company, have entered into an agreement to research and develop improved production pathways and better economics for certain bio-based chemicals used by PEC in its alternative motor fuel. The Agreement specifies a research phase followed by the design, construction and operation of a pilot plant for PEC by Arkenol.

The Companies have also signed a letter expressing interest in cooperating in the future areas relating to the production of PEC's alternative motor fuel and the manufacture of bio-based chemical ingredients of the fuel. Merrick Andlinger, President of PEC, stated that "Pure Energy Corporation 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 bio-based 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."

Louis L. Knickerbocker, Chairman & CEO of the L. L. Knickerbocker Company and Chairman of Pure Energy Corporation made the following statement: "The Agreement reached between PEC and Arkenol is another step toward bringing PEC's alternative motor fuel to commercialization and creates a competitive edge for PEC in the alternative fuel market."

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., based in Mission Viejo, California, 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.

The L. L. Knickerbocker Co., Inc. owns a 38.3% equity investment interest in Pure Energy Corporation. In the Company's core business, it develops a line of celebrity endorsed products, contracts for the manufacture of those products to the Company's specifications and sells them to customers through diverse retail markets. The Company also manufactures and sells its own jewelry products through diverse markets and through its own worldwide sales force. In addition, the Company has a 25% equity investment interest in Self-Heating Container Corporation and Insta-Heat, Inc., now known as Ontro, Inc., engaged in the development of new products which self-heats liquids and meals in a can.

SOURCE: L. L. Knickerbocker

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