New CEO of Environmental Solutions Addresses SEC Inquiry; Company Intends To Fully Cooperate With SEC

    TELFORD, Pa.--Aug. 2, 2002--Environmental Solutions Worldwide Inc. (OTCBB:ESWW), a company that develops, manufactures, and sells environmental technologies, today announced that it was advised by the Securities and Exchange Commission's (SEC) Fort Worth District Office that it intended to file a civil suit against the company and Bengt Odner, the company's current chairman, and others, alleging violations of certain anti-fraud provisions of securities laws.
    While the suit has not been filed, nor has the company reviewed the details of the suit, John Donohoe, the company's newly appointed CEO, president and vice chairman stated, "As previously reported in company's annual and quarterly reports filed with the SEC, we intend to cooperate fully with the SEC in an effort to resolve all claims in the best interest of shareholders and the company."
    Further information related to the suit will be disclosed when made available to the company.

    About Environmental Solutions Worldwide Inc.

    With headquarters in Telford, Environmental Solutions Worldwide is a publicly traded research and development company engaged through its subsidiaries in the design, development, manufacture and sale of environmental technologies currently focused on the international automotive and transportation industries. ESW manufactures and markets a line of catalytic emission control products and catalytic conversion technologies for a multitude of applications.
    For updated information, visit the company's Web site at: www.cleanerfuture.com.

    Safe Harbor

    This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (The "Act"). In particular, when used in the preceding discussion, the words "pleased" "plan," "confident that," "believe," "expect," or "intend to," and similar conditional expressions are intended to identify forward looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the company's products and technologies, competitive factors, the ability to successfully complete additional financings and other risks described in the company's SEC reports and filings.