Encompass Holdings' RETI Rotary Engine Update on CARB and EPA Certification

Encompass Holdings, Inc.

(Pink Sheets:ECMH), www.encompassholdings.com, confirmed today that Olson Ecologic Laboratories has received and will begin the preliminary testing of the 407cc rotary engine developed by the 

Encompass

 majority owned subsidiary 

Rotary Engine Technologies, Inc

., (

RETI

) for California Air Resources Board (CARB) and Environmental Protection Agency (EPA) emissions standard certification.

Scott Webber, Encompass CEO, was personally on hand at Olson's Lab in Fullerton, California for examination of our test engine. He reports that the engine was received in good condition and was immediately being prepared for preliminary testing to confirm our in-house emissions analysis prior to filing the official CARB test protocol application.

Webber stated, "I met with Don Olson, owner of Olson Labs, and two of his test engineers assigned to the project. They suggested it would be in our best interest to include an Olson Lab confirmation of our emissions analysis with our application. This preliminary testing will take 3 to 4 weeks to confirm our test results at which time documentation will be prepared and submitted to CARB. Since CARB has a much more stringent emissions standard, EPA will generally accept CARB certification as a qualifier for its own certification process. "

Webber continued, "It is Olson's opinion that once the 407cc rotary engine is certified, any future use of alternative fuels such as natural gas, methane, propane, or hydrogen gas fuel combinations such as HHO/diesel, HHO/gasoline, or any other combinations that do not increase the engine's emissions can be routinely submitted and approved without extensive additional testing." 

Larry Cooper, RETI CTO, stated, "I am very pleased at the enthusiasm our rotary engine has generated with Don Olson and Olson Ecologic Labs. Their eager approach to our project improves our timing estimates by eliminating scheduling delays. Getting our first rotary engine emissions certified will be a major milestone in our engine development plans including our 512 hp natural gas rotary engine currently in production-ready status. Scott and I are looking forward to working with Jerry Cole, our CARB/EPA procedures consultant to expedite the certification process. Mr. Cole is also a multi-fuel expert particularly knowledgeable in hydrogen fuels."

Forward-looking statements in this news release are made under the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the impact of changed economic or business conditions, competition, the success of existing and new product releases and other risk factors inherent in product development and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.

The Encompass Holdings, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6962

CONTACT: Encompass Holdings, Inc.
         J. Scott Webber
         [e-mail]
         
         RETI and Aqua Xtremes, Inc.
         Larry Cooper
         561-848-3312
         [e-mail]
         3705 Shares Place
         West Palm Beach, FL 33404