Exhibit 99.1


AGREEMENT

This agreement, effective October 7, 2002 by and between Save the World Air,
Inc. and RAND, witnesseth that, in consideration of the services mutually to be
rendered herein, SAVE THE WORLD AIR, INC. and RAND so mutually agree as follows:

WORK SCOPE:

RAND will use its best efforts in performance of the attached scope of work
(Exhibit A).

TERM: The term of this Agreement will run from 12/1/02 to 3/31/03.

INDEPENDENT CONTRACTOR:

RAND is entering into, and shall perform the work called for under this
agreement, as an independent contractor and not as an employee of Save the World
Air, Inc.. This agreement does not create or constitute a joint venture, agency,
partnership or other similar relationship between the parties.

PROGRAM DELIVERABLES:

RAND will provide Save the World Air, Inc. with deliverables as outlined in
Exhibit A. RAND will be solely responsible for its findings and conclusions in
all materials provided by RAND in the course of this project.

PUBLICATIONS:

It is an intention of this Agreement that publication of the results of the
policy and analytical research supported herein may be made available to the
public. These publications, including derivative works from the final
deliverables, will be copyrighted in RAND's name. RAND will acknowledge Save the
World Air, Inc. sponsorship in all publications resulting from this Agreement
and will provide Save the World Air, Inc. with a copy of each proposed
publication. Save the World Air, Inc. will review all documents within three (3)
weeks of receipt. RAND will be free to proceed with publication after the three
(3) week period whether or not any comments have been received from Save the
World Air, Inc. However, if comments are received, they will be considered by
RAND prior to publication.

USE OF NAMES:

RAND and Save the World Air, Inc. will obtain prior written permission from each
other before using the name, symbols, and/or marks of the other in any form of
publicity in connection with this agreement or the services provided hereunder.
This shall not include legally required disclosure by RAND or Save the World
Air, Inc. that identifies the existence of this agreement.

Save the World Air, Inc. will not use, nor authorize others to use, the name,
symbols, and/or marks of RAND in any advertising or publicity material or make
any form of representation or statement in relation to this Agreement or any
work product produced in accordance with this Agreement which would constitute
an express or implied
endorsement by RAND of any commercial product or service without prior written
approval from RAND.

TERMINATION:

Either party may terminate this agreement by providing the other with sixty (60)
days written notice. In the event that either party hereto shall commit any
breach or default of any of the terms or conditions of this Agreement, and also
fail to remedy such default or breach within sixty (60) days after receipt of
written notice thereof, the party giving notice may, at its option and in
addition to any other remedies which it may have at law or in equity, terminate
this agreement by sending notice of termination in writing to the other party to
such effect, and such termination shall be effective as of the date of the
receipt of such notice. RAND will be reimbursed for all costs and non-cancelable
commitments incurred in connection with RAND's services performed in accordance
with this Agreement to and including the effective date of termination,
including but not limited to costs incurred in transition between Tasks
described in Attachment A and costs incurred in winding down any Tasks described
in Attachment A regardless of whether such Task had been completed.

PROPIETARY INFORMATION:

During the course of conducting the work in accordance with this agreement, Save
the World Air, Inc. may provide RAND with proprietary information regarding Save
the World Air, Inc.'s research and development and product design. This
information may take various forms including written, designs and drawings, and
oral. This information will be clearly designated as "proprietary." RAND agrees
not to disclose any such confidential information for as long as it remains
unpublished unless such information: (a) was in the public domain at the time it
was disclosed to RAND; (b) entered the public domain subsequent to the time it
was disclosed to RAND through no fault of RAND; (c) was in RAND's possession
free of any obligation of confidence at the time it was disclosed to RAND; (d)
was rightfully communicated to RAND free of any obligation of confidence
subsequent to the time it was disclosed to RAND; or (e) was disclosed by Save
the World Air, Inc. to a third party without any confidentiality restrictions.

In addition, RAND may disclose certain proprietary information, without
violating the obligations of this Agreement, to the extent the disclosure is
required by an order of a court or other governmental body having jurisdiction,
provided that RAND provides Save the World Air, Inc. with reasonable prior
written notice of such disclosure in order to permit Save the World Air, Inc. to
seek confidential treatment of or a protective restricting disclosure or use of
such information, and cooperates with Save the World Air, Inc. in such efforts.

SUBCONTRACTS

If RAND deems that the experience or qualifications of third-party experts is
necessary for the work called for under this Agreement, RAND reserves the right,
in its sole discretion, to subcontract such work to third parties selected by
RAND.
LIMITATION OF LIABILITY; INDEMNIFICATION.

In no event will RAND or any of its employees or agents be liable under or in
connection with this Agreement or in connection with any services provided or
work product produced under this Agreement for any damages, including, but not
limited to, indirect, incidental, special or consequential damages, including
loss of profits, revenue, data or use, incurred by Save the World Air, Inc., or
any third party, whether in any action in contract or tort or based on a
warranty, including damages or losses arising out of, connected with or
resulting from the provision of the services under this Agreement, except to the
extent such damages are due to the gross negligence, bad faith or willful
misconduct of RAND.

Should RAND become the subject of any third-party claim or incur any liability
or expense in connection with the performance of the services, Save the World
Air, Inc., shall be obligated to defend against such claim with counsel
reasonably acceptable to RAND and shall indemnify and hold harmless RAND from
any such claim, liability or expense, except to the extent such claim, liability
or expense is due to the gross negligence, bad faith or willful misconduct of
RAND. At its election, RAND may retain its own counsel to participate in the
defense, and the fees and expenses of such counsel shall be paid by Save the
World Air, Inc., if representation of RAND by the counsel retained by Save the
World Air, Inc. would be inappropriate due to actual or potential differing
interests between RAND and any other party represented by such counsel in such
proceeding. Any settlement negotiated by Save the World Air, Inc. and its
counsel shall be subject to the prior written approval of RAND.

PAYMENT SCHEDULE:

Payment by Save the World Air, Inc. to RAND for the work supported by this
Agreement will be paid in accordance with the following payment schedule. If the
timeline specified below changes due to, among other things, availability of
information, availability of testing facilities and length of time for
completion, RAND and Save the World Air, Inc. shall discuss such changes and
mutually agree on a revised timeline. Any modifications to costs and fees
outlined below shall require a written instrument, signed by both parties to
this Agreement. All references to "Tasks" or "Task" below refer to, and are
qualified in their entirety by, the descriptions on Attachment A hereto. Total
cost for the contract is $220,000 to be allocated as follows:

1. $100,000 upon signing of agreement by both parties.

2. Beginning January 15, 2003, $40,000 per month for three (3) months upon
presentation of monthly invoices.

ENTIRE AGREEMENT

This Agreement constitutes the complete, final and exclusive embodiment of the
agreement between Save the World Air, Inc. and RAND with regard to the subject
matter hereof. It is entered into without reliance on any promise, warranty or
representation,
written or oral, other than those expressly contained herein, and it supersedes
any other such promises, warranties or representations. This Agreement may not
be modified or amended except in a written agreement signed by authorized
personnel of both Save the World Air, Inc. and RAND. This Agreement will bind
and inure to the benefit of the successors and assigns of the parties hereto.
The failure to enforce any right or remedy resulting from any breach of this
Agreement will not be deemed to be a waiver of any other or subsequent breach.
For purposes of construing this Agreement, no ambiguities will be construed
against either party as the drafter. If any provision of this Agreement is
determined to be invalid or unenforceable, in whole or in part, such
determination will not affect any other provision of this Agreement and the
provision in question will be modified so as to be rendered enforceable in a
manner consistent with the intent of the parties insofar as possible. This
Agreement will be construed and enforced in accordance with the laws of the
State of California as applied to contracts between California residents made
and to be performed entirely within California. This Agreement may be executed
in counterparts or with facsimile signatures, which will be deemed equivalent to
originals.

IN WITNESS WHEREOF, Save the World Air, Inc. and RAND have executed this
contract as of the date signed below.

Agreed and Accepted:

SAVE THE WORLD AIR, INC. RAND

By: /s/ Edward G. Masry By: /s/ Joanne B. Shelby
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Title: President, C.E.O. Title:
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Date: December 13, 2002 Date: 10/28/2002
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Joanne B. Shelby
Director of Contract and
Grant Services
RAND
ATTACHMENT A

TASK 1: REVIEWING THE TECHNICAL CAPABILITIES OF THE DEVICE FOR REDUCING
EMISSIONS AND SAVING FUEL AS DESCRIBED IN PATENT APPLICATION NUMBER
PCT/AU01/00585

RAND will perform the following steps:

- Review patent information
- Review technical and theoretical literature related to the basis of the
device
- Talk with and, in RAND's sole discretion, subcontract to automotive
experts to ascertain past and existing efforts in developing
technologies, theoretical bases, and discuss concerns that would exist
about the impact of this, similar and other types of devices on engine
and driving performance, including fuel economy, emissions, drivability
and reliability
- Discuss with the technology developers and other experts on how this
approach can be used on older vehicles with carburetors, older
generations of fuel injectors and latest advances in fuel and direct
injection engines
- Talk with experts about the potential for use of this technology in
small and large trucks
- Estimate the market penetration needed to yield significant benefits

Deliverable: Project memorandum summarizing the technical basis for this device
based on discussions and literature review and where possible outlining where
gaps in the devices capability might be. RAND will not take a position on
whether this device will likely work, but will report on findings from
literature and discussions with experts.

TASK 2: ASSESSMENT AND REVIEW OF OPTIONS FOR REDUCING TAILPIPE EMISSIONS

RAND will provide an overview of critical transportation issues that relate to
the reduction of emissions and improvement in efficiency. RAND will look at
other methods of achieving similar results, reviewing the state-of-the-art
technologies being developed to meet these regulations. Following on the recent
workshop at UC Riverside, RAND will look at the capabilities of the next
generation of internal combustion engines and hybrids, what they likely will
achieve and at what cost. Through RAND'S own research and, in RAND's sole
discretion, the research of subcontractors and through discussions and
interviews with experts, RAND will review existing and emerging technologies in
particular looking at:

- Options for reducing emissions in new and existing vehicles
- Emission reduction potential of alternatives
- Cost expectations of the alternatives

Deliverable: RAND published research paper on critical issues, technologies and
options for reducing emissions from transportation.