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RG Global and Catalyx Fluid Solutions Partner to Reduce Wastewater Treatment Costs for Oil & Gas Production

January 05  2007

RANCHO SANTA MARGARITA and ANAHEIM, Calif. – January X, 2006 -- RG Global Lifestyles Inc. (OTC: RGBL) has signed a technology transfer agreement with Catalyx Fluid Solutions, Inc. (CFS) for CFS to lead engineering procurement and operations for the design and construction of RG Global’s waste water treatment plants that will use CFS’s patented ion exchange technology to cost-effectively remove unacceptably high levels of sodium, barium, iron and other inorganic contaminants from the water associated with oil and gas production. The agreement with CFS will become effective upon the acceptance of a multi-year contract with one or more oil and gas production companies. Construction on the first wastewater treatment plant in Wyoming is expected to commence by second quarter of 2007.

CFS’s patented ion exchange technology to be employed in RG Global’s wastewater treatment plants is superior to current SAR removal technologies for coal bed methane (CBM) and other types of oil and gas production.  CBM uses copious amounts of ground water, contaminating them with excessive levels of sodium, calcium and magnesium (SAR) that pose environmental threats. CFS’s technology removes the contaminants that pose environmental threats, producing less than 1% of concentrated waste compared to 7-15% for competitors.

Disposal of the remaining concentrated waste is costly, so minimizing waste translates to major cost savings.  CFS’s technology reduces the producers’ cost for treatment and waste disposal for one barrel of water to significantly less than the currently industry average of $.32 to $.79 per barrel.

Additionally, wastewater treated with ion exchange technology meets the EPA and state requirements, even the State of Wyoming’s extraordinarily stringent requirements, for acceptable SAR levels, making water fit for discharge in nearby water bodies or for use in irrigation. Some competitors’ solutions have been unable to sufficiently treat water to meet Wyoming’s stringent SAR discharge levels standard, resulting in the shut down of hundreds of well and drilling operations in Wyoming and other areas. Offshore wells have similar wastewater treatment needs to prevent their discharge from killing surrounding sea life.

Successful pilot tests of the ion exchange technology with CBM production companies in Wyoming in 2006 proved that it is the most cost effective technology available that meets EPA and all state SAR discharge standards.  RG Global is currently in discussions with multiple production companies and expects to enter into wastewater treatment service contracts with a minimum five-year term.

In a separate agreement announced recently, RG Global appointed Catalyx Fluid Solutions CEO Juzer Jangbarwala as chief technology officer for RG Globa