Environmental Solutions Worldwide, Inc. Completes First Closing Of Private Placement

    TELFORD, Penn.--Oct. 16, 2002--Environmental Solutions Worldwide Inc. (ESW) (OTCBB:ESWW) announced today that it has closed on the first traunch of an equity private placement. The terms of the private placement involve a minimum of $800,000 and a maximum of $1,500,000.
    The Company has received an aggregate of $884,120 in subscriptions from a group of accredited investors. The Company has issued units pursuant to Regulation D at a purchase price of $0.17 per unit. Each unit is comprised of one share of restricted common stock and a warrant that can be exercised for a period of three years at an exercise price of $.15 per warrant to purchase 1/2 a share of common stock. Warrants under the placement are exercisable only in even lots at an aggregate exercise price of $.30 for every two warrants for one share of the Company's common stock. The warrants contain anti-dilution protection.
    Included in the initial closing is a total of $404,000 of converted loans and advances made to the Company by Mr. John A. Donohoe, Jr. the Company's Chairman , Chief Executive Officer and President and Mr. Bengt Odner a director of the Company that have been converted into units. Including the conversion of loans and advances, a total of 5,200,705 Units were subscribed for in the first closing of the placement. The Company will use funds from the placement for general working capital and the continued implementation of the Company's business and marketing plans.
    "The receipt of these funds and commitments from subscribers is a very significant factor that supports the Company's near and long-term growth" commented John Donohoe. "We believe the Company's ability to facilitate an equity private placement in this very difficult capital market is a positive comment on the Company's products, business plan and management team."

    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, please 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.