Environmental Solutions Worldwide Inc.: ESWC Catalyst/Mufflers Being Supplied to United States Military Via Tri-County International Trucks Under $2.8mil TACOM Contract

CONCORD, Ontario--Aug. 1, 2006--Environmental Solutions Worldwide Inc (ESW) (OTCBB:ESWW) through its wholly owned subsidiary ESW Canada (ESWC) is supplying 1000 catalyst/muffler units to Tri-County International Trucks, Inc., via a subcontract with International Military and Government LLC, a wholly-owned subsidiary of International Truck and Engine Corporation (International(R)), the operating company of Navistar International Corporation .

Tri-County, a Warren Michigan dealer, has won a $2.8 million contract with the US Army Tank-automotive and Armaments Command (TACOM) to supply ESW catalyst/muffler units to the United States Military for the Marine's amphibious Light Armored Vehicles (LAV's). The units are an essential component in the re-outfit of the Marine LAV's with new technologies in an endeavor to extend the effectiveness and life of the vehicles.

ESWC's engineering/design division developed a lightweight, stainless steel muffler system custom-designed for the LAV application. The unit construction incorporates the Company's proprietary catalyzed wire mesh substrate integrated into an advanced sound abatement system. The units were specifically engineered to decrease the vehicles overall signature by reducing the diesel engines black smoke (soot), eye and throat irritating noxious diesel engine emissions, temperature and sound.

The LAV originally manufactured by General Motors Defense of London, Ontario is a wheeled combat vehicle with eight-wheel drive (8x8) powered by a Detroit Diesel Corporation (DDC) 6V-53T two stroke diesel engine. It is capable of traveling in rugged terrain, cruising at more than 60 mph on roads and crossing rivers, streams and lakes in amphibious operations. With a combat weight of 14 tons, it can be loaded easily on to air transports, such as the C-130, C-141 and C-5, or helicopters, such as the CH-53E. The Marine Corps' intention is to continue to operate this vehicle well into the future until the Marine Expeditionary Family of Fighting Vehicles (MEFFV) is introduced sometime beyond 2020. In an effort to keep the LAV reliable, capable, and lethal until that time, the LAV is currently undergoing a Service Life Extension Program (SLEP). (1.)

"This sale to International(R) and subsequent PO to ESWC represents a milestone achievement in the building of our Company's foundation while going towards increasing our shareholder value," David J. Johnson, ESW's President and CEO commented. "Our catalyst/muffler system was specified for this important application due to the extreme durability and high performance of our proprietary metallic substrates, catalyst coating and unique muffler design. Our military spec catalyst technology is in its element in these types of application. We felt it was just a matter of time before our technology found its way into military programs, specifically one as significant as this. We believe that there is a potential for widespread deployment of our products across a large segment of diesel powered military vehicles, generators and off-road equipment."

(1.) Related Articles:

http://www.nationaldefensemagazine.org/issues/2000/Sep/Marine_ Corps.htm (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

http://www.nationaldefensemagazine.org/search.cfm

http://www.fas.org/man/dod-101/sys/land/docs/lytle.pdf

About International Truck and Engine Corporation

International Truck and Engine Corporation is the operating company of Navistar International Corporation . The company produces International(R) brand commercial trucks, mid-range diesel engines and IC brand school buses, Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. A wholly-owned subsidiary offers financing services. Additional information is available at: www.internationaldelivers.com.

About Environmental Solutions Worldwide Inc.

With headquarters in Concord, Ontario, Environmental Solutions Worldwide, Inc. is a publicly traded company engaged through its subsidiaries ESW Canada, Inc. and ESW America, Inc. in the design, development, ISO 9001:2000 certified manufacturing and sales of environmental technologies. ESW currently manufactures and markets a line of catalytic emission control products and catalytic conversion technologies for diesel, gasoline and alternative fueled engines 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.