American Fire Retardant Corp. Announces Values of New Contracts.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Jan. 10, 2002

American Fire Retardant Corp. (OTCBB:AFRC),(www.americanfireretardant.com) a fire protection company that specializes in fire prevention and fire containment, announced today that the three new contracts announced earlier this week will bring in new revenues of $171,464 to the company this year.

The newly awarded contracts include the Fresno Yosemite International airport located in Fresno, Calif.; the El Monte Aquatic Center located in El Monte, Calif.; and the Washington Boulevard Performing Arts Center located in Los Angeles.

"In addition to these contracts, we are moving rapidly to get our new aerosol product, Fyberix(TM) 2000-V to market," stated American Fire Retardant Corp. President Stephen Owens.

Fyberix(TM) 2000-V is a product that is applied to fabrics, such as mattresses, drapes, and upholstery and makes them flame retardant. This product, formally available only for commercial application, provides for the safety of homes and lives from fire. In addition to this product flame-retarding fabric, it is also a disinfectant that inhibits bacterial, viral and fungal growth, and finally it is a soil and stain release. Each 16-oz aerosol can is able to cover up to 40 square feet and is non-toxic and earth friendly.

According to the National Fire Protection Agency (NFPA), a fire occurs somewhere in the United States every 18 seconds, resulting in an injury every 23 minutes and a death every 130 minutes.

About American Fire Retardant Corp.

American Fire Retardant Corp. is in the business of developing, manufacturing and marketing a line of interior and exterior fire retardant chemicals. The company provides fire resistive finishing services through its "Textile Processing Center" for commercial users.

American Fire Retardant Corp. also designs new technology for future fire resistive applications that are being mandated by local, state and governmental agencies. Additionally, the company is active in the construction industry as sub-contractors for fire stop and fire film installations.

Safe Harbor for Forward-Looking Statements: Except for historical information contained herein, the statements in this new 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.