American Fire Retardant Announces Anticipated Contract Worth $1.3 Million.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--May 9, 2003

American Fire Retardant Corp. (OTCBB:AMFR), today announced that the anticipated contract with Health Systems, Inc. to treat polyester fabric, will be worth at least $1,300,000 over the first ten months.

Stephen F. Owens, President of AFRC, says "We have received the first roll for treatment and will return it to their manufacturer next week to have it made into draperies. We have been treating fabric commercially and this job, although the largest single order we have received, will not be difficult for us to handle. We look forward to our expected new association with Health Systems, Inc. and are pleased to help them protect their nursing homes from fires that start or spread on the draperies."

Randy W. Betts, Comptroller of AFRC, says "We are very excited about this new job and look forward to being able to satisfy all of Health Systems, Inc.'s fabric treatment requirements. Since they are the largest nursing home provider in the Midwest, they have an ongoing need for new fabric. Because of this ongoing need and our expertise in this area, we anticipate that we will have a very long-term relationship with them."

Safe Harbor for Forward-Looking Statements: Except for historical information contained herein, the statements in this news release are forward-looking statements that involve risks and uncertainties and are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in the future periods to differ materially from forecasted results.