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FOR IMMEDIATE RELEASE


POWERMASTER CORPORATION SUES LILA YORK AND POWERMASTER ENVIRONMENTAL GROUP, LLC

PowerMaster DENVER, CO, May 18, 2008 --/WORLD-WIRE/-- PowerMaster Corporation, a Colorado corporation (PowerMaster), recently sued Lila York and Powermaster Environmental Group, LLC, a Nevada limited liability company (PEG). The lawsuit, filed in the Bexar County District Court, in San Antonio, Texas, includes claims for theft, conversion, trade secret misappropriation and tortious interference with business relations. The complaint alleges that, while working for PowerMaster, York misappropriated funds belonging to PowerMaster and certain intellectual property, including CAD drawings, manufacturing processes and other trade secrets related to the PowerMaster ReCyclone Mill.

In several recent publications, Ms. York is quoted as claiming to be the president and owner of PowerMaster and that she had acquired the ReCyclone technology from the original inventor, identified in one article as "Ogden Bass." However, patent search results filed with the lawsuit show that Mr. Curtis L. Harris is the inventor of the patented technology for the ReCyclone Mill. Records of the Nevada Secretary of State reflect that PEG's owning members are Ms. York and Mr. Paul Dole, who is described in the publications as PowerMaster's "Director of Special Projects."

PowerMaster's Colorado attorney, Horace A. Lowe, of the Denver-based law firm of H.A. Lowe & Associates LLC, states that Ms. York became involved with PowerMaster about a year ago, but was dismissed by Mr. Harris, PowerMaster's sole shareholder, later in 2007. Said Lowe, "I find it eerily baffling that with absolutely no execution of any license, assignment or other such contract, she is claiming that she owns the technology and PowerMaster."

According to both Harris and Lowe, Ms. York, PEG and Mr. Paul Dole have absolutely no ownership or license in the technology and absolutely no contractual or other authority to act on behalf of PowerMaster, or to bind PowerMaster to any contract, or to procure the manufacture of the ReCyclone Mill for sale or lease to any customer.

The lawsuit was filed by PowerMaster's Texas counsel, Barry H. Beer, of the San Antonio-based Law Offices of Beer & Martinez, L.L.P. Beer, who also teaches Negotiation as an adjunct professor at St. Mary's University School of Law, declined to make any substantive comment, stating only, "we were hired to try to accomplish a particular objective and that's our only focus. Of course, the lawsuit and related court filings are and will be a matter of public record, unless the court orders otherwise, but I will leave any public statements on the subject to Mr. Harris and Mr. Lowe."

As a final thought, Harris stated, "It might take some time to get through the problems that have been caused. In the meantime, PowerMaster will continue to take orders for the ReCyclone Mill and to serve well our existing and new customers in accordance with their particular needs."

Contact for Legal Matters:
Horace A. Lowe
Telephone: 303-495-2040
E-mail: hlowe@halolaw.com

Contact for the ReCyclone Mill:
Curtis L Harris
Telephone: 830-522-0590
Email: artex@copper.net