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HiPOx Treats MTBE in Drinking Water

South Lake Tahoe, CA - November 15, 2001 - Applied Process Technology Inc., (Applied) is proud to announce the delivery of an 800 gpm, HiPOxT drinking water treatment system for the removal of MtBE from the new Arrowhead #3 well site of the South Tahoe Public Utility District (STPUD). According to a representative of STPUD, " Rather than abandon the new well altogether, STPUD turned to a new technology that mixes hydrogen peroxide and ozone in water. These react chemically with the MtBE, creating byproducts of water and carbon dioxide. The carbon dioxide is vented off, and the cleansed water is recovered and returned to the drinking water system".

Following rigorous testing and simulations, STPUD's Manager of Water Operations Rick Hydrick, stated, "We chose Applied's HiPOx water treatment technology because we are confident that it can completely destroy the MtBE concentrations found at this site and will meet the District's high standards to deliver the cleanest drinking water possible to our customers".

Terry Applebury, Applied's President and CEO, says this installation of the radically new HiPOx, high pressure, Advanced Oxidation Process for drinking water heralds a breakthrough in the attack on MtBE-contaminated drinking water. "The Company was founded on the premise that the Drinking Water Industry, faced with a growing array of new and emerging man-made chemical contaminants, would recognize the value of a new technology, designed and exclusively targeted to face the challenge of removing these contaminants, without generating hazardous by products. The process of qualifying and ultimately being selected for this first and high profile installation was extremely rigorous. As a result, our team takes great pride in the recognition this installation will bring to HiPOx and their efforts to introduce such a new technology to the Industry".

The HiPOx process decomposes MtBE and returns it to its basic innocuous constituents of carbon dioxide and water. Applied's patented water treatment technology represents the culmination of 5 years of application research and very significant investment by a team of investors, scientists and engineers who founded Applied in 1996. This "team's" 125 years of aggregate chemical industry and process engineering know-how provided the exceptional technical underpinning required to develop and introduce this new technology to the demanding Drinking Water industry.

In addition, as part of the Company's rigorous 5-year process development effort, Applied constructed two mobile pilot plants. These research units enable the Company to establish the effectiveness of the HiPOx process to destroy a wide array of organic chemical contaminants found in groundwater from across the USA. At over 100 sites and 100 different water conditions, the HiPOx process has been shown to cleanse local water of chemical contaminants to the regulated level or to non-detect, if desired. As a result, Applied has installed several systems for the removal of recalcitrant chemicals such as MtBE and 1,4-dioxane from the groundwater beneath petroleum and industrial storage and distribution sites.