Balaton begins field trials on PISCES water intake

May 2, 2002

Balaton Power Inc. has begun field testing of its patent pending PISCES fish protection water intake system at the Yakama Nation's salmon hatchery near Prosser, Wash.

The PISCES is a unique water withdrawal system designed to prevent migrating salmon from being trapped in water intakes, which is a priority in the Nation's efforts to recover and protect endangered salmon stocks. Two prototype PISCES units have been placed in the outflow channel between the hatchery and the Yakima River to verify operational performance characteristics in a live and natural setting and are being conducted over a 4-5 week period using migrating salmon from the hatchery. Results will be posted on the Company's website:

Balaton is honored to team with the Yakama Nation to test and verify the operational effectiveness of the PISCES. Dan Pfeiffer, Balaton's Vice/President of Business Development notes "The Yakama Nation is one of the leading fisheries authorities in the Pacific Northwest, with generations of experience with and commitment to salmon recovery programs and their cooperation is invaluable. Also, we have retained Entrix Inc. to conduct the actual field trials since they are a recognized leader in the fields of fish biology and environmental engineering. We are most pleased with their level of experience and professional expertise in this sector, adding a significant credibility to our endeavors."

Rod Smith, President and CEO, states, "We are confident that the PISCES technology, verified by our initial test results, will ultimately become widely recognized and accepted as a most efficient and cost effective choice for water withdrawal wherever threatened or endangered species exist. Preliminary results from our testing at the Prosser, Washington site have shown initial performance efficiencies in excess of 90 percent -- an outstanding outcome to date."

Balaton Power Inc. is in the business of providing low impact, run-of- river hydroelectric power production systems which incorporate a unique, patent-pending, fish protective water inlet system called the "Pisces" which is also adaptable to the irrigation and industrial cooling water intake market sectors and the acquisition, development and operation of Company owned and operated hydroelectric power production sites.

Source: Balaton Power Inc.

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