International Energy Announces Breakthrough Diagnostic Technology for Algae-Derived Biofuels

BioGauge™, International Energy’s new patent-pending ‘bio-profiling’ technology, helps determine peak production of oil in algae for extraction of bio-crude -- an important innovation in optimizing development and production of commercial algae-based biofuels.

Newark, NJ – September 10, 2008 – International Energy, Inc. (OTCBB: IENI), a developer of leading-edge technologies for the renewable generation of photosynthetic biofuels, today announced that researchers have devised and instituted an important patent-pending technology capable of rapidly determining the accumulation of bio-oil and other high-value compounds in microalgae, an important advancement in the development of tools for the commercial production of biofuels from algae.

“In order to extract the maximum quantity and quality of bio-oil or bio-polymer from microalgae, it is vital that engineers are able to rapidly determine exactly how much of the compound of interest is present in the algae feedstock at all times during its growth. In all cases, we want to extract oil at the peak moment in the algae’s natural oil production cycle, and this newest innovation uniquely positions International Energy with a fast, reliable technology to do so,” explained Mr. Gregory B. O’Reilly, President and CEO of International Energy, Inc.

“Notably, BioGauge™, our patent-pending breakthrough, gives us the competitive edge in rapidly screening multiple samples for the content of the desired compound(s) in microalgae and photosynthetic bacteria, a know-how that can maximize harvest yields and ultimately help hedge against the risk of product degradation.”

According to researchers, one of the most important steps in the production of commercial bio-crude and biofuels from algae is the ability to determine the right time to extract oil from the microalgae feedstock during the algae’s growth-cycle. To date, scientists have often used a series of time-consuming, expensive, and sometimes unreliable laboratory methods. In contrast, International Energy’s new BioGauge™ bio-profiling technology is easy-to-use, instantaneous, and highly-reliable.

“These technical achievements collectively offer us special commercial advantages, and are especially timely in light of recent, key advances in the development of our biofuels from algae, a safe, renewable, non-food-source energy feedstock,” concluded Mr. O’Reilly.

In addition to today’s news, the Company has previously announced major technological advances in nutrient delivery and bio-oil extraction processes. International Energy’s proprietary nutrient delivery protocol alleviates specific nutrient absorption limitations in microalgae, thereby enhancing growth and hydrocarbon production.

Researchers have also developed a novel, continuous bio-oil extraction process that is safe for the Company’s proprietary microalgae. Microalgae processed utilizing International Energy’s OilFlow™ extraction process remain viable hydrocarbon producers, reducing expected maintenance costs while maximizing yield per acre.

ABOUT INTERNATIONAL ENERGY INC.

International Energy, Inc. (Symbol: IENI) is developing leading edge technologies for the production of biofuels derived directly from the photosynthesis of green microalgae, which can accumulate up to 30% of their biomass in the form of valuable biofuels.

As a result of current high oil prices, depleting fossil oil reserves and growing concerns about increased levels of atmospheric carbon dioxide, algae have emerged as one of the most promising sources for biofuel production.

Our technology seeks to convert water (H2O) and carbon dioxide (CO2) into useful long-chain liquid hydrocarbons from the photosynthesis of proprietary unicellular microalgae, which offer advantages in the production, storage and utilization of renewable biofuels, as they can be harvested easily, stored in liquid form and do not require special containment systems.

The process of industrial scale algae growth in photo-bioreactors is non-toxic and non-polluting, can be scaled-up, offers a renewable energy supply, and aids in carbon sequestration and the mitigation of climate change.

In contrast to biofuels from food crops or cellulosic materials, certain algae produce and accumulate oil naturally and can in the process clean up waste by absorbing and utilizing nitrogen oxides and carbon dioxide. Additionally, raw algae can be processed to make biofuel, the renewable equivalent of petroleum, and refined to make gasoline, diesel, jet fuel, and chemical feedstock for plastics and drugs.

OilFlow™ and BioGauge™ are trademarks of International Energy, Inc.

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