Announces Initial Sale of Bioforce 9000 Nano Biodiesel Reactor Skid System

18 Dec 2008

Cavitation Technologies, Inc. (CVAT) announced today that it has completed the first sale of its proprietary state-of the-art Bioforce 9000 Nano Biodiesel Reactor Skid System to SRS Engineering Inc. This initial sale was completed ahead of Cavitation Technologies' original schedule and financial projections.

The new Bioforce 9000 Nano Biodiesel Reactor Skid System will be a component of SRS' 20 gallon per minute, 10 Million gallons per year Turn-key Biodiesel Production System which is being installed by Process Concepts, Inc. of Pevely, MO USA, and will be operational in March of 2009. According to SRS Engineering, the Bioforce 9000 Nano Biodiesel Reactor Skid System offers substantial savings over existing technologies in both construction and production costs as well as its ability to process multiple feedstocks with FFA content as high as 6% using vegetable oil and 4.5% using animal fats.

"We are delighted to be working with SRS Engineering. Incorporating our Bioforce 9000 into their biodiesel plant installation is an important milestone and another confirmation of our superior technology," said Roman Gordon, Chairman and CEO of Cavitation Technologies. "We believe that the early sale of our 'one-of-a-kind' system is a reflection of the quality of our people, our technology and validation of our continuous efforts to find unsurpassed synergies with best-of-breed partners in the biodiesel industry."

Cavitation Technologies looks forward to continue expanding our relationship with SRS Engineering and to increase the product scope and installation base for the Bioforce 9000 and Nano Cavitation related systems.

"Working with Cavitation Technology has been a first class experience" said Clayton Hawranik, president of SRS Engineering. "They (Cavitation Technology) have a game changing technology, which will revolutionize the Biodiesel industry by allowing biodiesel producers to cut production costs as well as to have feedstock flexibility. We are looking forward to presenting the Bioforce 9000 to all existing and future clients and partners, as we see tremendous added value."

About SRS Engineering

Founded in 1985, SRS Engineering Corporation is an industry leader in engineering and manufacturing process equipment and Biodiesel plant equipment. The company is backed with over two decades of industry experience and over 150 years of combined engineering knowledge. SRS' extensive experience in the engineering and manufacturing of distillation systems and other equipment has also translated into the biodiesel industry. SRS specializes in methanol recovery systems, biodiesel reactors and biodiesel distillation systems along with complete biodiesel plant construction. For more information about SRS Engineering, please visit Or come see us at National Biodiesel Conference & Expo February 1-3, 2009. San Francisco, CA Booth 632 & 634

About Cavitation Technologies

Cavitation Technologies, Inc. (CTI) (CVAT) is an engineering and manufacturing company focused on becoming the worldwide leader in the sales of nano technology-based cavitation systems. Although CTI is focused on applying its technology to modular, turn-key solutions to the biodiesel industry, the company recognizes potential commercial applications for nano-based cavitation technologies in markets such as water sanitation, alcoholic beverage instant aging, milk pasteurization and homogenization, chemical processing, water - diesel emulsion, crude oil enhancement, and pharmaceuticals. The company is led by seasoned business professionals with management, manufacturing, engineering and environmental experience, and is headquartered in Chatsworth, California. For more information about Cavitation Technologies, please visit or call 1 818-718-0905. Or come see us at National Biodiesel Conference & Expo, February 1-3, 2009. San Francisco, CA, Booth 102 & 104

A number of statements referenced in this Press Release are forward- looking statements, which are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, and within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, and goals, assumption of future events or performance are not statements of historical fact and may be "forward-looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this Release may be identified through the use of words such as "expects," "will," "anticipates," "estimates," "believes," or statements indicating certain actions "may," "could," or "might" occur. Such statements reflect the current views of Avalon Capital Holdings Corporation with respect to future events and are subject to certain assumptions, including those described in this release. These forward- looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products, services, and technologies, competitive market conditions, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses, and other factors. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties.

Cavitation Technologies, Inc. does not undertake any responsibility to update the "forward-looking" statements contained in this news release. Any communications received by fax or e-mail concerning Cavitation Technologies, Inc. which have not been authorized by the Company or its investor relations/media advisory firm are specifically disavowed by the Company.

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