New power policies cause proliferation of waste-to-energy systems

SPOKANE, Wash., March 12, 2002 — Enviro-Energy Corp. announced that innovative power policies found in some regional utilities have helped the company get contracts for its Enviro-Energy™ Bio-Waste-To-Energy Systems.

The Tillamook area near Portland, Oregon is home to some of the finest cheeses made in the world and a thriving dairy industry facing serious pressure from environmental agencies and lobbies concerned about the waste streams created by dairies.

The Tillamook People’s Utility District published a Policy Bulletin Effective 09/14/01 allowing small (less than 100KW) power generators to produce and sell power to the District on a Net Energy basis. This means that a small farm can install an Enviro-Energy™ Bio-Waste-To-Energy System, converting manure into electrical energy knowing that it can sell power not used for its own need to the District.

This policy represents a major innovation in utility/customer interfaces essential to bio-waste remediation solutions. The company believes that the Tillamook People’s Utility District new policy is a strong indicator of local utility districts moving towards protecting themselves and their communities from the loss of agribusiness due to environmental issues while embracing sound alternative energy programs.

Energy Flow Management, Inc., the company’s wholly owned operating subsidiary responsible for the Enviro-Energy™ Bio-Waste-To-Energy System is currently building its first “Tin Lizzy” — the company’s proprietary fully containerized factory manufactured system designed for small farm applications (such as dairies with fewer than 500 animals). Although the majority of US and world farms are within this size limit, economical technology for converting animal waste has not been previously available.

The Tin Lizzy developed by Enviro-Energy is specifically designed for this market. However, energy pricing uncertainties, and the small scale of energy output relative to energy company total demand had inhibited predictability of investment payback from electrical energy sales. Policies such as those promulgated by Tillamook encourage the proliferation of solutions such as the Enviro-Energy™ Bio-Waste-To-Energy System as a means of enabling small farmers to deal with increasingly stringent environmental requirements.

There are approximately 150 small dairies in the Tillamook District representing a potential market of $33,750,000 for Enviro-Energy™ Bio-Waste-To-Energy Systems. The company cautions that this number represents the maximum potential for this county. It serves as a useful pointer to extent of the total US market as well as the potential for the Tin Lizzys within a small geographic area. The company expects its first small farm system to be installed in this region by May 15th, 2002. Its sales staff has been directed to focus on this region to maximize short term revenue opportunities.

The company further expects to release additional information on its emerging initiatives related to horticultural markets in the near future.

Enviro-Energy Corp. is a consolidator and operator of environmentally related businesses. Acquisitions and internal growth focus on energy, air, and water sectors. The company expects to sustain growth through its aggressive roll up strategy, internal synergies and the deployment of its ENVIRO-ENERGY™ systems throughout the world.