CTi Announces Another Commercial Placement of Its Proprietary Technology in the Vegetable Oil Refining Industry

15 Dec 2010

Cavitation Technologies, Inc. ("CTi") (OTC Bulletin Board: CVAT) (Berlin, Stuttgart & Frankfurt: WTC) a California based technology company, announced today that it has entered into a financing lease arrangement with Fidelity Capital Partners, LLC, a California finance leasing firm, and AgNatural, LLC, a U.S. vegetable oil refiner, that will allow deployment of CTi's Nano Neutralization™ technology at AgNatural's North Carolina refining facility.

Under this arrangement, CTi will supply a Nano Reactor™ Unit to Fidelity, which will lease the Unit to AgNatural for an initial term of five years. As part of the transaction, CTi and AgNatural have signed a user license authorizing AgNatural's use of CTi's reactor technology at its facility. CTi believes that use of lease financing should accelerate the projected lease revenue stream for the Unit and allow CTi to collect the full amount of the Unit price and fees upon delivery of the Unit.

The lease finance arrangement follows several months of testing and evaluating CTi's technology at various U.S. vegetable oil facilities. Through this program, CTi has been able to confirm, to the satisfaction of AgNatural, the commercial viability of a new proprietary application or process developed for the vegetable oil refining industry. Dubbed "Nano Neutralization™", CTi believes this application has the potential to provide continuous economic benefits to refiners through increased oil yields and reductions in process chemicals.

According to Roman Gordon, CTi's CEO, "We believe our pilot program with vegetable oil refiners demonstrated almost immediately the commercial value of Nano Neutralization™ and allowed us to measure the potential economic benefits it may provide in certain refining processes. We're now in the process of rolling out this technology to the vegetable oil refining industry on a worldwide basis."

CTi (OTCBB: CVAT; Berlin, Stuttgart & Frankfurt: WTC) is a technology research, development and technology company engaged primarily in the development of environmentally clean Nano Reactor™ technologies and liquid process applications and solutions in various fields and industries, including vegetable oil processing and refining; renewable fuels; petroleum refining and petrochemicals; water and wastewater treatment; and the food and beverage industries.

This press release contains forward-looking statements, including without limitation those about the Company's business, plans and strategies. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of business, economic and competitive market conditions; business decisions by suppliers, licensees and customers concerning the Company's technologies and products; the Company's ability to develop new or additional technologies, applications and processes in various fields and industries and to stimulate customer demand for its technologies and products; the size and growth of markets for the Company's technologies and products; the Company's ability to implement licensing and marketing strategies, including execution of revenue generation strategies and models; the continued availability of essential components and services that are currently obtained from sole or limited sources; the Company's ability to protect its intellectual property in international markets; the success of patent licensing and marketing strategies and objectives; the success of business relationships with licensees, partners, suppliers and customers; the timing and successful completion of research & development projects, whether existing or new patent applications will be granted; the potential for infringement of the Company's intellectual property by others, and the timely completion of acquisitions; the ability of the Company to fund its capital requirements; and its ability to attract and retain key personnel.

Additional information on potential factors that could affect the Company's performance or financial results is included from time to time in the Company's public reports filed with the SEC. The Company assumes no obligation to revise or update any forward-looking statements or information, which are effective or apply only as of their respective dates of publication.

NOTE TO EDITORS: For additional information, visit CTi's websites at www.ctinanotech.com.

References to CTi, the CTi logo, Nano Reactor™ system, Nano Reactors™, Nano Neutralization™ and other terms that describe the Company's technologies, applications, processes and products are trademarks of the Company. Other company and product names may be trademarks of their respective owners.

CavitationTechnologies, Inc.10019 Canoga Ave., Chatsworth, CA 91311 USA+1 (818) 718-0905