Napier Environmental Technologies Inc.: 2001 Year's Results

    VANCOUVER, British Columbia--Napier Environmental Technologies Inc. (T-NIR) has released its audited financial results for the year ended December 31, 2001 together with management's discussion and analysis (MD&A). Complete copies of these documents may be reviewed on the Company's web site at www.napierenvironmental.com or may be obtained from the public records for Canadian securities regulatory authorities at www.sedar.com . A very concise summary follows, however, readers are encouraged to review the full details at the above locations.
    At December 31, 2001 the Company had working capital of $2.1 million and also has access to a $1 million bank line of credit to provide for operations during fiscal 2002. In addition the Company has recently filed application with the TSE for the re-pricing of outstanding warrants so as to provide still additional funding opportunity. For the year ended December 31, 2001 the Company's sales reached $7.4 million as compared to $6.8 million for the last full year of operations. The Company continued to incur operating losses ($3.4 million for the year) as well as a net loss for the year of $12.9 million, most significantly affected by the Company's third quarter write-off of goodwill in the amount of $9.6 million. This write-off and details of the operating results are more fully discussed and disclosed in the MD&A and audited consolidated financial statements.
    The MD&A provides a summary of achievements during the past year, a discussion of liquidity and capital resources as well as a discussion of results from operations, all incorporating significant steps taken by management to improve results for the 2002 fiscal year.
    Specific changes that management expects for fiscal 2002 include (1) improved gross margins due to shift in product mix and due to pricing improvements for retail distribution; (2) substantial increase in sales and marketing through additional distribution arrangements in place for 2002; and (3) reduced operating costs due to a conscious cost containment program. This plan has been carried out specifically to increase shareholder value, using as its foundation basic financial operating fundamentals.

    Forward Looking Statements:

    This release and referenced materials contain forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause actual results to differ materially include: rapid technological and/or market changes in the industry; the ability to maintain and grow successful third party and customer relationships, to improve current products and develop new products, to adequately protect the company's proprietary rights and other factors described in the company's regulatory filings. Although we believe the expectations reflected in our forward looking statements are reasonable, individual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.

    ON BEHALF OF THE BOARD OF DIRECTORS

    Clifford T. Davis, Chairman and CEO

    The Toronto Stock Exchange neither approves or disapproves the contents of this news release which has been prepared solely at the discretion of management.