SULPHCO, INC. (OTCBB: SLPHE)

Editors Note:

On March 29th, the Stockupticks newsletter published a snapshot of SulphCo, Inc. (OTCBB: SLPHE) that introduced our readers to the company's products and potential. On April 30th, we released a detailed profile of the company (click here) that highlighted its business operations, its processing technology to remove sulfur from crude oil and the benefits this processing has on oil refining efficiency and its value in promoting a cleaner environment. 

The stock has nearly doubled since our initial coverage.* 

SulphCo released news today that it has entered a contract with a Northrop Grumman (NYSE: NOC) subsidiary, Northrop Grumman IT.  Under the agreement, SulphCo will prepare a feasibility study and then provide analysis regarding the ability of its technology to assist Northrop clients like the U.S. Navy in reducing sulfur in its specialized fuel as well cost-efficiency measure and addressing environmental concerns.  The contract could be the beginning for SulphCo's technology to find wider applications in reducing sulfur content from petroleum-based energy sources. We think you'll find today's breaking news to be valuable information. 
 

*** TODAY'S BREAKING NEWS ON SULPHCO ***

RENO, Nev., May 8 /PRNewswire-FirstCall/ -- SulphCo, Inc. (OTC Bulletin Board: SLPHE), today announced it entered a subcontract with Northrop Grumman Information Technology, a wholly owned subsidiary of Northrop Grumman Corporation.  Northrop Grumman IT is the prime contractor for the U.S. Navy's 'Advanced Propulsion Systems' program that studies and provides cleaner, more efficient energy sources for a wide variety of navel vessels. 

According to the contract, payments of $25,000 are scheduled every two months for a total of $75,000 over six months with a completion date of September 30, 2002. This contract funds refinements to SulphCo's patented technology with the goal to reduce sulfur in diesel type oil used by NATO and the U.S. Navy. Using SulphCo's patented technology with ultrasound, sulfur can be reduced by as much as 80 percent in a continuous process of desulfurization. This specific contract pertains to the study of the removal of sulfur from F76 logistic fuel for fuel cell application. 

SulphCo will initially prepare a feasibility study and then provide analysis of ultrasonic sulfur removal to a final goal of 10-15 parts per million (ppm) while maintaining a minimum flash point of 60 degrees centigrade and allowing no more than 10 ppm of oil in the discharge water. SulphCo will then demonstrate at the lab scale, the capability to achieve this process and provide a final demonstration using F76 fuel provided by the U.S. Navy. Finally, SulphCo will provide a written report of the analysis, demonstrations and recommendations regarding sulfur reduction to levels below 0.5 ppm. 

"This is a solid step forward for our company and the company's patented technology," said Dr. Rudolf Gunnerman, chairman and CEO of SulphCo. "Utilizing our ultrasound process, we expect to impact the quality of fuel used by Northrop's clients while addressing cost-effectiveness and environmental concerns. We are excited to be working with Northrop Grumman IT on this project." 

About SulphCo Inc. 

In the late 1990's, Dr. Teh Fu Yen, Professor of Civil and Environmental Engineering at the University of Southern California conceived of a novel process for the removal of sulfur from petroleum products that did not involve the high temperatures and pressures required by traditional technologies. In 1998, one of company's founders, Dr. R.W. Gunnerman, an internationally acclaimed scientist and businessman and recent recipient of the Albert Einstein Award, who has devoted his life to developing and implementing solutions to global environmental issues, established SulphCo (formerly "GRD, Inc."). SulphCo was created to fund Dr. Yen's research under an agreement between Dr. Gunnerman and the University of Southern California. This funding enabled Dr. Yen and his students to develop a technology that addresses the worldwide dilemma of noxious sulfur emissions ("SulphCo Technology") in a practical and cost effective way. Under that research agreement, SulphCo became the owner of the SulphCo Technology. For more information, visit the company's Web sites at: http://www.sulphco.com 

Safe Harbor Statement 

Statements about the company's future expectations, including: sales forecasts, synergies between the companies, and all other statements in this release, other than historical facts, are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, section 21E of the Securities Act of 1934, as that term is defined in the Private Securities Reform Act of 1995. The company intends that such "forward looking statements" be subject to the safe harbors created thereby. 

CONTACT: Media & Investor Relations, Shannon T. Squyres, President of Market Pathways, +1-949-955-1860, for SulphCo, Inc. 

Click Here to read the release at the NASDAQ Web site.
 

*** How To Contact SulphCo ***

Safe Harbor Statement: Statements contained in this document, including those pertaining to estimates and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. 

*Past performance is no indication or guarantee of future results.

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