EXHIBIT 99.1
Published on November 12, 2002
EXHIBIT 99.1
SAVE THE WORLD AIR, INC., ACQUIRES OWNERSHIP OF PATENT RIGHTS TO ZEFS POLLUTION
CONTROL DEVICE FOR INTERNAL COMBUSTION ENGINE
San Diego, November 12, 2002 (Business Wire) - Save the World Air, Inc.
(NQB:ZERO) today announced that it reached a settlement with the bankruptcy
trustee for the Australian bankruptcy estate of Jeffrey A. Muller and his wife,
Lynette Anne Muller, transferring all ownership and legal rights to the
international patent application for the Zero Emission Fuel Saver (ZEFS) device.
In a statement by our President Ed Masry, he said "our Officers and Board of
Directors are delighted by these recent developments that grant us sole
ownership and control of the ZEFS device. Although this has been a somewhat
lengthy process, we felt it necessary to clarify our patent rights to the ZEFS
device prior to filing international patent applications and expanding worldwide
marketing."
Under the Deed and Document of Conveyance (Conveyance) entered into between the
trustee and SWA, SWA has agreed to, among other things: (a) grant to the trustee
common stock purchase options for 500,000 shares, exercisable at US$1.00 per
share for up to ten years; (b) pay a royalty of $.20 per ZEFS device sold; and
(c) release to the trustee any claims that SWA may have to the shares of common
stock (i) that are directly owned in the name of Jeffrey A. Muller or Lynette
Anne Muller or (ii) transferred by them after notice of the bankruptcy
proceeding.
The Conveyance does not resolve the pending dispute between SWA and the
Mullers concerning common stock purchase options for 10,000,000 shares, the
issuance of 7,500,000 and other issues. SWA will continue to seek to cancel such
options and shares and seek other affirmative relief against the Mullers in the
action currently pending in the U.S. District Court for the Southern District of
New York, and the Conveyance does not seek to resolve the issues before the
court in that action.
As previously disclosed, on May 28, 2002, in settlement of Kevin Charles "Pro"
Hart's challenge to SWA's rights to the ZEFS patent, Pro Hart assigned all his
patent rights to SWA in exchange for certain stock options and other
consideration. However, the settlement with Pro Hart effectively was subject to
SWA's resolution of Muller's claims to the ZEFS patent. Pro Hart will also
receive royalties on sales of ZEFS devices of $.20 per device sold and common
stock purchase options for 500,000 shares, exercisable at US$1.00 per share for
up to ten years.
Copies of these agreements are attached to SWA's Current Report on Form 8-K
filed with the SEC on November 12, 2002.
The ZEFS device is designed to reduce carbon monoxide, hydrocarbons and other
toxic fuel emissions, while improving fuel economy. By atomizing fuel molecules
prior to their injection into the engine, the ZEFS device is designed to enhance
fuel system performance, increase engine efficiency and minimize environmental
pollution.
CONTACT: Save the World Air, Inc.
Edward Masry, 818/865-3500
questions@savetheworldair.com
URL: http://www.businesswire.com