LOS ANGELES, Jan. 24 /PRNewswire-FirstCall/ -- Save the World Air, Inc. (Pink Sheets: ZERO.PK) today announced that is has appointed Golden Allied Enterprises (Group) Co., Ltd. (GAE) to serve as the company's exclusive distributor for its ZEFS and CAT-MATE devices in the People's Republic of China. In a signing ceremony at the company's new product development facility in Morgan Hill, California, a Distribution Agreement was entered into by the company's wholly-owned subsidiary, STWA Asia Pte. Limited and GAE. The Distribution Agreement provides for the sale of up to 11,500,000 devices over five years, with an initial order of 100,000 units to be placed before July 31, 2006, and minimum increasing targets for orders in successive years of the agreement. Sales under the agreement are contingent upon, among other things, the company's completing EURO2 testing in Shanghai, China prior to March 31, 2006. The company believes that these tests will replicate the successful independent EURO2 tests recently conducted at the Pollution Control Department, Ministry of Natural Resources and Environment, Thailand. Bruce McKinnon, President of Save the World Air, stated, "This distributor agreement is a milestone for our company. It is in accordance with our strategic marketing plan for the emerging markets in Asia where demand for the company's ZEFS and CAT-MATE is expected to be driven by the implementation of new exhaust emissions regulations. The Asia/Pacific region accounts for 85% of the world motorcycle demand (32.8 million units in 2004, of which 17 million were produced in China) and the market is growing at a rate of 6% per annum". GAE specializes in assisting U.S. companies develop business opportunities in China, through a network of U.S. and Chinese businessmen, investment bankers and politicians in both countries. Through one of its Chinese advisors, GAE has been deeply involved in Shanghai Volkswagen, the first and largest automobile joint venture in China, as well as United Automotive Electronic Systems, Ltd., a German-Chinese joint venture that became the largest auto parts manufacturing company in China. GAE has offices in Shanghai and Santa Cruz, California. John Bakalian, President of GAE added, "We will focus on supplying ZEFS and CAT-MATE devices to motorcycle and small utility engine manufacturers and we are confident of meeting the minimum performance levels in our agreement. We are honored to serve as Save the World Air's exclusive distributor in China". Save the World Air, Inc. is currently engaged in the product development and initial sales and marketing of devices using proprietary technologies that can be installed on motor vehicles, motorcycles and stationary engines to reduce harmful emissions, improve fuel efficiency and/or improve performance. Safe Harbor Statement This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause actual results and performance in future periods to be materially different from any future results or performance suggested by the forward- looking statements in this press release. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that actual results will not differ materially from these expectations. From time to time, these risks, uncertainties and other factors are discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-KSB for the year ended December 31, 2004. For further information, please contact: Eugene E. Eichler, CEO Save The World Air, Inc. +1-818-487-8000 First Call Analyst: FCMN Contact: debbieg@militaryconnection.com DATASOURCE: Save the World Air, Inc. CONTACT: Eugene E. Eichler, CEO of Save The World Air, Inc., +1-818-487-8000 Web site: http://www.savetheworldair.com/

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