Napier Environmental Technologies Inc.: Legal Update

    VANCOUVER, BRITISH COLUMBIA--June 25, 2002-- Napier Environmental Technologies Inc. (TSX:NIR) reports that on June 24, 2002, at the conclusion of a court hearing in respect to ongoing litigation with certain former employees, the court vacated an injunction granted in July 2001. The judge has not yet provided reasons.
    In addition, on June 24, 2002 the defendants filed an amended counterclaim whereby they allege damages for lost compensation, general damages for defamation, damages arising from the injunction, costs and interest, allegedly in excess of $700,000. Management will be defending the counterclaim.

    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
    Cliff 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.