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November 15, 2007 - SulphCo Executes Technology Transfer Agreement With Industrial Sonomechanics

HOUSTON, Nov. 15 /PRNewswire-FirstCall/ -- SulphCo(R), Inc. SUF (the "Company") announced today that it has entered into an agreement with Industrial Sonomechanics, LLC ("ISM"), under which ISM has granted exclusive worldwide rights to the Company to use its patented ultrasound horn and reactor technology for ultrasound upgrading of crude oil and crude oil fractions. In return, ISM will receive license fees, consulting fees, warrants to purchase 50,000 shares of SulphCo(R) common stock and, should the Company exercise its option to extend the agreement, a grant of 50,000 restricted shares of SulphCo(R) common stock. The ISM probe design embodies state of the art technology, a unique combination of prodigious power output and high energy efficiency.

"We are pleased to welcome ISM as an important member of the SulphCo(R) team and are excited about their cutting edge technology," said Dr. Larry Ryan, CEO of SulphCo(R). ISM is a U.S. based company formed in 2006 to commercialize its patented high-power ultrasonics technology, which was developed by the company's founders during several decades of research in Russia. The company specializes in very high capacity industrial ultrasonic reactor systems, which incorporate powerful ultrasonic horns capable of simultaneously providing high output vibration amplitudes and large output diameters. "This unique combination of features," said ISM President Alexey Peshkovsky, "is ideally suited to SulphCo's(R) Sonocracking(TM) process, which requires high ultrasonic vibration amplitudes to efficiently alter the molecular structure of the crude oil and crude oil fractions and large output diameters to maximize productivity."

Several experimental prototypes of the ISM probe design were manufactured for SulphCo(R) by MWH in Germany. In a head to head laboratory comparison, the ISM probe generated more than three times the amplitude in horn surface movement than the SulphCo(R) Series II probe design and, as reported earlier, in successive test runs in Fujairah on a medium crude (32.9 API, 1.6% sulphur by content) the new ISM experimental probe achieved a reduction in sulphur by content more than two and one half times greater than that produced by the SulphCo(R) Series II probe.

"While these preliminary results are encouraging, bear in mind that the ISM probes are first generation prototypes and further work will be required to develop the kind of consistent performance necessary for commercial applications," said Dr Ryan. "But we are very pleased with the initial results and believe this technology is a perfect fit for our Sonocracking(TM) technology. By the same token, we will continue to utilize and refine the SulphCo(R) Series II probe design in parallel, as that design has also produced significant API shifts and sulphur reduction in initial testing in Fujairah."

In another development, before the resumption of testing in Europe, the ISM probe was upgraded to incorporate a SulphCo(R) engineered modification allowing real time feedback measuring the energy released from the probe surface into the reaction chamber, a feature not present in earlier probe designs. "This is an invaluable tool in our ongoing efforts to optimize this process," noted Dr. Ryan. "Real time feedback will allow us to 'tune' the ultrasound probe characteristics for a given crude oil by constantly adjusting power and frequency to maintain uniform energy output into the reactor chamber.