DAVIS, Calif., Aug. 10, 2006 -- Moller International, Inc. the developer of the Skycar(R) aircraft, the Rotapower(R) line of rotary engines and the Aerobot(R) line of Unmanned Aerial Vehicles (UAV), today announced it had achieved remarkably low emission levels in recent test of its Rotapower(R) engine. With ethanol as the fuel, the toxic emissions generated by the Rotapower(R) engine were below the California Super-Ultra Low Emissions Vehicle (SULEV) standards as well as the ambient levels of some U.S. cities.

The 530cc engine tested produced 22 hp at 4500 rpm with an air/fuel ratio of 20 and lambda of 1.35.

The toxic emission levels with ethanol were as follows:
Unburned hydrocarbons (HC) = .5 ppm or .0043 gm/hp-hr
Carbon monoxide (CO) = 9 ppm or .03 gm/hp-hr
Nitrous oxide (NOx) = 3 ppm or .016 gm/hp-hr

The carbon dioxide produced was 11%, which is 25% lower than with gasoline. Ambient carbon monoxide levels in the Los Angeles basin averaged 17 ppm over 8-hr for 144 days annually while the average annual HC level was at .8 ppm. In this case the Rotapower engine would help clean the air when used to power vehicles and equipment. Previous tests of the Rotapower(R) engine using gasoline were witnessed by Dr. Andy Burke from the Institute of Transportation Studies (ITS) at the University of California in Davis. These tests showed that with gasoline the Rotapower(R) engine produced toxic emissions below the ultra low emission vehicle level (ULEV) without using an exhaust after-treatment (no catalytic converter required). This new data shows that the Rotapower(R) engine operating on ethanol meets the California SULEV standard also without exhaust after-treatment. The Company believes that applications using the Rotapower(R) engine running on ethanol could actually improve air quality in some cities in the US.

Moller International

Moller International was formed in 1983 and recently signed a Memorandum of Agreement that is expected to lead to high volume production of its Rotapower(R) rotary engine in Eastern Europe. This alliance which includes MI's exclusive Rotapower(R) engine licensee, Freedom Motors (see www.freedom-motors.com) is to be named Rotapower Limited and is anticipated to produce engines for a wide variety of applications in the world market.

MI is in the process of installing more powerful versions of its Rotapower(R) engines in the M400X Skycar(R) aircraft in preparation for a public demonstration scheduled for the spring of 2006. The Skycar(R) has been featured on a number of TV programs including CBS 60 Minutes, "Highway In the Sky", NBC's Today Show "Today's American Story", and History Channel's, "Greatest Movie Gadgets: Then and Now".

Safe Harbor Statement

Except for historic information contained in this release, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results in the future to differ materially from forecasted results. These risks and uncertainties include, among other things, the company's ability to attract qualified management, raise sufficient capital to execute its business plan, and effectively compete against similar companies.

Skycar(R), Aerobot(R) and Rotapower(R) are registered trademarks of Moller International in the USA and other countries.

For further information contact: www.moller.com