SPARKS, Nev., Jan. 4, 2005 – SulphCo, Inc. (OTC Bulletin Board: SLPH), a leader in developing and marketing high-powered ultrasound technology and equipment for the petroleum industry, announced that founder and CEO Rudolf Gunnerman has made an additional $7 million investment in the company.

This transaction involves a $7 million direct loan for a term of 36 months at market rate. The proceeds will be used to expedite commercialization of SulphCo’s patented ultrasound process to upgrade crude oil by increasing the distillate yield while at the same time reducing sulfur and nitrogen content, Gunnerman said. Gunnerman began developing ultrasound desulfurization technology in 1997 and founded SulphCo in 2000 to bring the process to market.

“This additional capital will enhance our balance sheet and provide what we believe will be sufficient funds for commercialization and rapid delivery of our product,” Gunnerman said.

SulphCo’s ultrasound technology upgrades crude oil at low pressure and low temperature by breaking the molecular bonds in hydrocarbons, producing more gallons of usable oil per barrel of crude. The company has a collaboration agreement and is conducting ongoing analysis of the process with ChevronTexaco Energy Technology Co., a unit of ChevronTexaco Corp.