Ambiente Agreement Clarified.

Business Editors/High-Tech Writers

WEST NYACK, N.Y.--(BUSINESS WIRE)--March 3, 2004

Solucorp Industries Ltd. (SLUP), further to its press release 02-204 "Solucorp Signs Exclusive Agreements with Ambiente," and in an effort to answer some of the many questions from its' shareholders provides further clarification with regard to its Exclusive Agreement with Ambiente.

The Company refers its shareholders to an article by International Business Strategies October 2002 titled" Remediation of Contaminated Sites, Equipment and Services in Italy". The Article in summary states: the Italian market for the assessment and remediation of contaminated sites is expected to undergo strong growth over the next three to five years. The Italian Government has recently approved the Ministerial Decree No. 471/99, a new legislation establishing criteria, procedures and methods for safety and clean-up actions and for the environmental restoration of contaminated sites. The shortage of landfills has created an extremely difficult situation in many Italian regions, requiring extraordinary interventions such as the "exportation of a number of trains full of urban waste to Germany for incineration. The majority of waste generated in Italy has been disposed of in landfills, creating areas throughout Italy that require urgent remediation. The Ravenna Site is one of those sites and is the first ENI Group Site noted in the Ambiente contract to be cleaned up utilizing Solucorp's patented MBS(R) Technology. Ambiente signed a contract with Solucorp which grants to Ambiente the exclusive right to market and apply; and Ambiente agrees to exclusively use Solucorp's MBS(R) Technology for ENI Group and its customers, limited to the Country of Italy, for remediation of on-site projects for heavy metal contaminated soils, sludge and industrial ash.

The Italian government has allotted funds for clean up of high environmental risk areas in Italy. At present, approximately 40 areas in Italy have been identified in the Italian "National Remediation Plan" as high-risk environmental areas in need of urgent clean up. Currently, it is estimated that at least 15,000 sites in Italy are currently subject to environmental investigation and remediation actions. The Italian Ministerial Decree such as that administered at the Ravenna Site provides procedures and methods for safety and clean-up actions and for environmental restoration of contaminated sites. Inventories of potentially contaminated sites are compiled by the regional administrations, which are also responsible for prioritizing remedial actions. Additionally, The Italian Ministry of the Environment has allotted approximately 500 million Euro to clean-up the high risk sites throughout Italy.

Over the next three years, around 5.5 billion Euro should come from public financing and an additional 7.5 billion Euro from industries themselves (based on the "polluters pay" principle) in order to finance the remediation of contaminated sites throughout Italy. According to a report issued by the Italian National Agency for Environmental Protection, the regions with the highest number of polluted sites are Emilla Romagna (3,182) and Lombardia (2,544). A breakdown of regions and number of contaminated sites for 2001 are detailed in the article.

The article also states market opportunities could develop for those U.S. companies offering innovative products and environmental clean-up technologies. The article highlights that U.S. engineering and remediation service companies seeking to do business in Italy team up with local firms who have an understanding of the local business practices and regulations. Solucorp has done just that by signing the Exclusive Agreement with Ambiente.

The report further recommends that U.S. new-to-market companies ("such as Solucorp") offering innovative products and technologies identify and closely cooperate with well-established Italian companies ("such as Ambiente"). Those companies may also consider cooperative arrangements or joint venture/licensing agreements with Italian producers. "Solucorp and Ambiente have done just that and on an exclusive basis" by signing the Joint Exclusive Agreement.

The report specifically highlights Solucorp's Exclusive Italian Licensee "Ambiente" and states "since 1988, the Italian company, Ambiente, has been leading the way in environmental rehabilitation and has executed a wide variety of high environmental risk projects. Today, the company is the leader in the Italian engineering companies."

In essence the February 25, 2004 press release was executed to announce that Ambiente, the Environmental Company of the ENI Group (www.eni.it) operating in the field of remediation and environmental services entered into the Agreement "to strengthen it's competiveness and leadership in the Italian market through cooperation with Solucorp." ENI is one of the World's energy giants. Based in Rome, ENI is one of the largest Italian companies employing over 80,000 employees in more than 70 countries. ENI is active in chemical production and marketing, national gas exploration and production, petrochemicals, engineering and oil services resulting in annual net revenues averaging 47 billion Euro per year during 2000 through 2003.

It must be clearly understood that Solucorp has taken a major step in entering the Italian Remediation Market. As for future revenues and number of projects, Solucorp notes it is premature to speculate at this point. The proof of the financial impact or "lack thereof" of Solucorp's Agreement with Ambiente will be reflected in future announcements and the reporting of revenues as and if they are actually generated.

Solucorp is most importantly honored that the ENI Group's environmental subsidiary and its many engineers and scientists after in-depth analysis and testing have selected Solucorp's MBS(R) Technology to offer exclusively to ENI Group Companies and other Italian Companies in need of Federally and self imposed mandated clean-ups throughout Italy.

The foregoing discussion contains forward-looking statements, which are based on current expectations. Actual results, including the timing and amount of revenues recognized, contracts awarded and performed and net income may differ due to such factors as: delays in payment on contracts due to dealings with governmental and foreign entities; fluctuations in operating costs associated with changes in project specifications; economic and other conditions affecting the ability of prospective clients to finance projects; and other risks generally affecting the financing of projects. Solucorp settled a civil action by the SEC the details of which can be found on the SEC website, as such investors are cautioned to perform a proper due diligence and consult licensed professionals prior to making an investment decision.