Hydro Environmental Resources Inc. Pursues License Agreements

    LAS VEGAS--Oct. 2, 2001--Due to the increasing interest of different markets, Hydro Environmental Resources Inc. (OTCBB: HYER) has decided to pursue interested parties for license agreements.
    Several options are being examined at this time. An agreement will be announced when a final decision has been made.
    The intention is to build a commercial working model and to grant licenses for production of the ECHFR for the world market in the area of alternative energy for domestic and commercial applications.
    Hydro Environmental Resources Inc. is also seeking to demonstrate the smaller model to the automotive industry for the production of low-pressure hydrogen generation. Invitations will be made to several large automotive manufacturers for a private demonstration of the unit installed in a test vehicle over the next few weeks.

    In conjunction with the provisions of the Safe Harbor section of the Private Securities Litigation Reform Act of 1995, this news release may contain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations.