EWI Closes Sale of First Tire Processing Plant

    AJAX, Ontario--Jan. 15, 2003--Environmental Waste International Inc. ("EWI") (TSX VENTURE:YEW) has closed the first commercial sale of its Reverse Polymerization Tire Processing Plant. An EWI model TR3000 has been sold to a private UK company for an operation to be located in the UK. EWI has received a deposit of over $1 million against a purchase price in excess of $10 million. EWI anticipates that it will take approximately 18 months to complete the design, building and installation of the plant. EWI will work closely with the purchaser to assist in obtaining all necessary permits and approvals prior to the installation and operation of the unit.
    EWI believes that there is no technology other than reverse polymerization that adequately addresses the scrap tire issue in an environmentally clean manner. Alternative incineration fuel or tire-derived fuel (TDF) is currently the single largest use of scrap tires because they have a similar heat value and combustion characteristics to coal. However, TDF and coal have come under increasing attacks from environmental groups because of the air emissions of SOx, NOx, CO2 and other potential hazardous byproducts that can result from combustion of complex, heavy molecular weight hydrocarbons. In addition, incineration does not recycle and recover the valuable byproducts in the tires. The patented EWI System employs microwave energy to break down and separate tires into carbon black, oil, steel and hydrocarbon gases. EWI's system can generate attractive financial returns through the sale of the end products. The reverse polymerization system significantly reduces atmospheric emissions and because it is a major improvement over incineration it can participate in carbon credit and air emission trading. There is a significant reduction of sulfur released to the atmosphere by generating power from the EWI system compared to the burning of tire derived fuels. The environmental benefits of this system are significant.
    The TR3000 is designed to process 3,000 tires per day or about 1,000,000 tires per year. Each 20 lb tire is reduced to roughly 7.5 lbs of carbon black and 2.0 lbs of steel. The remainder of the tire byproducts (oil and hydrocarbon gases) can be used as fuel for the production of electricity which will not only meet the system's power needs but can produce excess electricity to be sold to the power grid. The carbon black produced by the system has many potential markets including the production of new rubber products. The steel is sold for recycling. As the market for EWI processed carbon black begins to grow there will be an additional environmental benefit due to the decreased need for production of new carbon black, which is an emission intensive process.
    EWI has developed processors to treat medical waste and rubber tires and is presently working on designs for several other processors. Please visit Environmental Waste International Inc.'s home page on the Internet at: www.ewmc.com
    WARNING: The Company relies upon litigation protection for "forward-looking" statements.