Encompass Holdings Achieves Rotary Engine Emissions and Endurance Objectives


WEST PALM BEACH, Fla., April 1, 2008 (PRIME NEWSWIRE) -- Encompass Holdings, Inc. (Pink Sheets:ECMH), www.encompassholdings.com, announces that its wholly owned subsidiary, Xtreme Engines Inc., has completed development of its fuel management system and seal modification on the redesigned 407cc Rotary Engine.

Encompass entered into a working relationship with Wankel AG in late 2005. Xtreme Engines took over the task of modifying the 407cc engine to meet present day emissions standards. In conjunction with Rotary Engine Technologies Inc., the engine was converted to fuel injection. The air/fuel delivery system and internal engine parts were redesigned for efficiency and longer engine life.

"Our goal has been to use every possible engine modification to enable the 407cc to meet E.P.A. and California (C.A.R.B.) emission standards and to extend the engine's life span. We improved on the Rotary limitations to have an engine competitive with piston engines of the same horsepower. Test results have exceeded our expectations. Our tests show emissions well within E.P.A. and C.A.R.B. standards. Rotary engines have many advantages over piston engines including lighter weight to horsepower and fewer moving parts for lower maintenance costs," states Larry Cooper, head of engine development. "Of the many potential uses for this 407cc 39hp rotary, our first will be to power our own Xboard; a motorized surfboard produced by Encompass subsidiary, Aqua Xtremes, Inc., www.aquaxtremes.com, which designs and develops innovative marine products."

"Our shareholders have waited a long time for this development work to be completed. Past management started this project with the same goal we have today. We have now achieved the results we all had in mind; a superior engine! We look forward to adapting the developed technology to our larger rotary engines as well," states Encompass C.E.O. Scott Webber. "Due to rising oil prices, alternative fuels are getting more popular by the day and we have been and will continue to develop with various fuels in mind. Hydrogen, methane and propane are of particular interest. More information is available on our websites."

Final parts wear inspection is being completed by an independent laboratory. The engine will be scheduled for testing at an EPA certified test facility upon receipt of wear confirmation.

Encompass Holdings, Inc. delivers financial and executive management support to accelerate business success across several industries. The corporate strategy emphasizes vertical and horizontal diversification, innovative product development, and overall market penetration.

Forward-looking statements in this news release are made under the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the impact of changed economic or business conditions, competition, the success of existing and new product releases and other risk factors inherent in product development, extreme sports industries, and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.



            

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