News Release

NEWS RELEASE - July 26, 2004

First American Scientific Corp. (FASC.OB) selected to participate with the University of Tennessee in USDA Biomass Research Initiative


July 26, 2004 09:30:00 (ET)

VANCOUVER, Jul 26, 2004 /PRNewswire-FirstCall via COMTEX

First American Scientific Corp. (FASC.OB) announced today that the United States Department of Agriculture has awarded a grant of $717,399 USD for research to be conducted by the University of Tennessee, Oakridge National Research Laboratory and First American Scientific Corp. The project F-5-15 entitled "Integrated Size Reduction and Separation to Pre-Fractionate Biomass" will take place over a three-year period. Expected outcomes are the development of an innovative, integrated technology to reduce size and separate biomass crop residues. First American Scientific Corp. staff will contribute both management and technical expertise, as well as run product testing and sampling through FASC's patented KDS Micronex System.

According to Dr. A. R. Womac Ph.D., P.E. of U of Tennessee, "identifying First American Scientific Corp. as the key industry partner was not random. FASC has a history of developing novel size reduction and separation processes. Their Kinetic Disintegration System (KDS) uses a spinning mechanism inside a torus chamber to fracture and dry materials including biomass (up to 80% moisture), wood wastes, crop residues, soft rock, among others. Separation in this system is accomplished with a classifier and cyclone."

FASC President, Brian Nichols commented: "We are proud to be included in this research and for the significant recognition it provides for not only our technology, but for the dedicated work of our staff, Dr. Sundar Narayan Ph.D, P.Eng and David Dungate, B.Comm, M.Eng. This project is in addition to the Phase II - STTR small business grant from the US Dept. of Energy which is currently in the final stages of review."

FASC develops, manufactures and sells the KDS Micronex system, a patented disintegration system capable of reducing waste materials into a fine dry powder. The Micronex has proven it can add significant value by the drying and micronizing of biomass, agri-waste, and pulp sludges suitable for burning in specialized dust burning systems to create energy or to be used as a clean, pathogen-free fertilizer. Please see our web sites for additional details.

Certain information and statements included in this release constitute forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act.