Seprotech Lands Military Standing Offer Contract: Agreement Worth Up to $6,000,000

  Seprotech Systems Inc. (TSX VENTURE: SET), a Canadian Environmental Technology Company and manufacturer of water and wastewater treatment systems, is pleased to announce that the Canadian Department of National Defence (DND) has selected Seprotech to support two classes of water purification systems with Repair and Overhaul Services, Engineering support and Field Service support.

The Standing Offer is for an initial two year period estimated at $ 2.5 Million with an option to extend for an additional three one year periods. The estimated total value of the five year standing offer is $6,000,000. The final amount spent in any given year, is at DND's discretion. The amount spent by DND in any given year will vary according to military needs. The standing offer process provides the Canadian Forces with immediate response and support to their equipment requirements. Seprotech has been awarded similar Standing Offers from DND in the past including the equipment in this new Standing Offer.

"We are very pleased to have been awarded this Standing Offer Agreement. We have done this work in the past for DND and this new award demonstrates the high degree of confidence that DND has in Seprotech," said Martin J. Hauschild, President & CEO of Seprotech.

"We announced last year, that in response to an expected downturn in capital spending we would place increased emphasis on plant operations, spare parts and service," added M. Hauschild. "This work is a key element in that strategy and we remain committed to our goal to generate 50% of revenues from Operations and Maintenance (O&M) within two years. Over time, the utility side of our business will provide revenue consistency while water & wastewater treatment equipment sales will provide growth. The ability of Seprotech to meet all aspects of its clients' water and wastewater treatment needs represents a clear competitive advantage," concluded M. Hauschild.

Seprotech is a provider of pre-engineered water and wastewater treatment plants to the land development, resource sector and military market place, including CrystalBlue(TM) membrane-based water recycling systems and the ROTORDISK® wastewater treatment systems.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. Some of the statements in this press release, including those relating to the Company's strategies and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions, are forward-looking statements within the meaning of securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of the Company. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. The Company does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as required by law.

Contacts: Seprotech Systems Incorporated Mr. Robert J. Searle, CFO Investor Relations 613-523-1641 613-731-0851 (FAX) [e-mail]