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News Release
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EPTC Technology Consistent With Federal Clean Water
Strategy For Agricultural/Livestock Pollution Reduction
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WEST LAKE VILLAGE, CA, March 15, 1999 -- Marvin Mears, president and chief executive officer of Environmental Products & Technologies Corporation, commented today on the March 9, 1999 White House announcement regarding implementation of the Unified National Strategy for Animal Feeding Operations.

In the White House announcement, made approximately one year from the announcement of the Clean Water Action Plan, designed to help ensure clean water for national health, Vice President Al Gore said, "We've made tremendous progress over the past year. These new steps will further strengthen our partnerships with communities and farmers across the country to restore our waterways and protect public health." The Vice President also announced $100 million in additional funding to states to control polluted runoff through Watershed Restoration Action Strategies, and $157 million in proposed FY 2000 funding to help states and communities implement other projects to reduce urban and agricultural runoff. In addition, he called on Congress to strengthen and reauthorize the Clean Water Act.

As outlined in last week's announcement, the Unified National Strategy for Animal Feeding Operations, developed jointly by the Department of Agriculture and the Environmental Protection Agency, will employ a range of flexible, common-sense tools to reduce potentially harmful runoff from 450,000 animal feeding operations nationwide -- cattle, dairy, poultry and hog farms -- where animals are raised in confined situations.

As Gore emphasized, manure and wastewater from these operations can pollute waterways with excess nutrients, organic matter, pathogens, heavy metals and antibiotics, which contribute to environmental and public health risks such as groundwater contamination, shellfish bed closures, fish kills, and outbreaks of toxic algae and microbes such as Pfiesteria.

The Unified National Strategy is aimed at better management of 1.37 billion tons of manure a year, with voluntary programs being the principal approach for smaller operations that comprise approximately 95 percent of the U.S. domestic animal feeding industry.

Consistent with recently enacted legislation, animal feeding operations posing a significant risk to water quality or public health -- about 5 percent of the total nationwide -- will be required to obtain Clean Water Act discharge permits. Targeted operations include those with more than 1,000 animal units (the equivalent of 1,000 beef cattle); those that discharge directly into waterways or have other "unacceptable," environmentally threatening conditions; and those that contribute significantly to the impairment of a waterbody.

The strategy outlined by the administration sets a goal of developing and implementing Comprehensive Nutrient Management Plans for all animal feeding operations by 2009. Within the scope of the strategy are actions to prevent or reduce runoff, including feed management, improved storage and handling of manure, and better land management.

According to Mears, the implementation of the aforementioned programs places a deadline for achieving safe operating standards on animal farming operations much like those faced by gasoline stations that were required to install safe fuel storage systems prior to year-end 1998. Based on a mandated phase-in toward total compliance, the nation's 20,000 largest farms will be required to act over the next three years, with the balance of 425,000 smaller operations being required to comply over a ten-year period.

"EPTC's technology is consistent with the Federal mandate and makes excellent environmental and economic sense," said Mears. He indicated that at present value, EPTC's installation of its Closed Loop Waste Management system in just 10% of the target locations can be expected to generate gross revenue to the company of over $600 million over a 10-year period.

"Clean water is obviously a major natural resource. EPTC is enthusiastic about placement of leadership for agricultural pollution clean-up in the high-profile office of the Vice President, which signals top priority for the Unified National Strategy for Animal Feeding Operations," said Mears. "We have always viewed the marketplace for our initial product line as having the potential to exceed $1 billion dollars over the next 10 years. However, aggressive initiatives by the Federal and various state governments, which have the potential to shorten the time frames for our realizing significant revenue from installations and after-market servicing of EPTC's Closed-loop Waste Management System, finds us rethinking our internal projections along more ambitious lines," said Mears.

The Closed Loop Waste Management System was designed by EPTC to be one of the solutions to the type of pollution caused by animal feeding and raising operations. The EPTC system is effective in treatment of animal waste on a commercial scale because it is able to process appropriate volumes of waste within as little as a 48-hour processing time. The system, which can be installed on-site and sized to the volume of the waste stream, is designed to address the concerns that the U.S. Department of Agriculture (USDA) and Environmental Protection Agency (EPA) as outlined in The Unified National Strategy for Animal Feeding Operations. In addition to solving environmental concerns about nutrient levels, pathogens, nitrogen, phosphorus, ammonia, odors and the adverse environmental impacts of animal feeding operations, the EPTC system eliminates the need for waste storage lagoons that are a prime source of pollution to nearby water supplies.

EPTC's Closed-loop Waste Management System converts solid animal waste into commercial-grade, pathogen-free, nutrient-rich, soil-building media and converts liquid waste into a non-potable water suitable for use on crops. Additionally, consistent with a renewed national interest in clean energy technologies, EPTC's patented co-generation system converts methane gas into electricity, which can be used to offset a portion of a farm's electrical costs, with excess being sold to the local power grid.

Environmental Products & Technologies Corporation is focused on solving environmental problems while enhancing the productivity of domestic farming and large livestock raising operations. The company's Closed Loop Waste Management System provides a safe and economical method of substantially reducing water pollution from animal husbandry operations such as cattle feeding, dairy, pig, and chicken farming.

NOTE: Statements contained in this release that are not strictly historical are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1998, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The company makes these forward-looking statements based upon information available to it as of the date hereof, and the company assumes no obligation to update such forward-looking statements. Although the company believes the expectations reflected in such forward-looking statements are reasonable, editors and investors are cautioned that such forward-looking statements invoke risk and uncertainties that may cause the company's actual results to differ from these forward-looking statements. Such risks and uncertainties include, but are not limited to, the ability of EPTC and NDES to complete the contemplated transaction on or before January 15, 1999 and according to the terms outlined in the letter of intent, market demand for each company's product(s), the ability of each company to fulfill demand, sales levels, and competitive trends, as well as other economic, regulatory, governmental and market factors outlined in EPTC's reports to shareholders and periodic filings with the Securities and Exchange Commission.

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EPTC HQ
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informed@eptcorp.com
http://www.eptcorp.com/
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