Aqua Care Systems Inc. Announces New Management Team and Management Stock Purchase; New Executive Team to Spur Innovation and Growth for Water Purification Company.

Business Editors & Environmental Writers

VISTA, Calif.--(BUSINESS WIRE)--Oct. 24, 2001

Aqua Care Systems Inc. (NASDAQ:AQCR) today announced several additions to the company's executive management team.

In addition, the company announced the management team's purchase on October 1, 2001, of approximately 71,000 shares of privately held stock, a transaction involving an estimated 2.5% of the company's outstanding shares. Following a successful tender offer earlier this year, these developments greatly enhance the ability of the company to innovate, grow and diversify as a leading water filtration and purification products, systems, and services company.

H. Martin Jessen, a former executive with Vivendi/USFilter, one of the world's leading water services companies, joined Aqua Care as president and chief executive officer in April 2001. Jessen introduced his new management team today stating, "The new members of our management team possess more than 130 years of combined experience in the water services industry. We have the talent, industry relationships, technical expertise and entrepreneurial commitment to best serve our current customers and to grow our company. We are primed to achieve our mission of developing innovative technologies that lead to the safe and efficient use of water."

Joining Aqua Care as chief financial officer is Harry Rector. Rector was the CFO of Weber Distribution & Warehouses, Inc. from 1997-2000 and was the CFO of Infotec Development, Inc. from 1990-1996. Recently, Rector served as a consultant to several emerging companies.

Jessen also announced new heads of Aqua Care's Industrial, Residential/Commercial and Municipal Divisions. Scott Heffner, vice president and general manager, will lead the Industrial Division. Heffner has over 20 years experience in the water and wastewater business. He worked most recently as senior vice president for USFilter, in charge of business development worldwide in the microelectronics market. He started his career with Nalco Chemical, headed Sybron Chemical's ion exchange business, and later served as a senior executive for both Arrowhead Industrial Water and Polymetrics.

Mark Lambert, vice president and general manager, has been appointed to lead the Residential/Commercial Division. Lambert has over 20 years experience in the water business in chemicals, membranes and residential applications. He recently served as west region vice president for USFilter's Culligan operations and played a key role in moving USFilter into the consumer water products business. Prior to USFilter, Lambert's water industry career included management positions with Nalco Chemical and Northwest Water.

Geoff Poole, vice president and general manager, will lead the Municipal Division. Poole has 20 years experience in the public water utility business, the last nine as general manager of the Rancho Santa Fe Irrigation District in northern San Diego County. He has been a member of the San Diego County Water Authority Board of Directors and has been active in the Association of California Water Agencies (ACWA) and a variety of other water organizations.

Aqua Care Systems Inc., through its wholly owned subsidiaries, is engaged in the design, engineering, manufacturing, assembly, marketing and distribution of water filtration and purification products, systems and services. The company was formed in 1990 and was listed on NASDAQ in 1993. The Residential/Commercial Division specializes in reverse osmosis and ion exchange products and services, and works through a network of 200 dealers internationally. The Industrial Division specializes in pressure leaf and tubular filters, filter presses and sludge dryers. Its customers include Proctor & Gamble, Anheuser Busch, Kodak, Boeing, Chevron and Caterpillar. The company relocated its headquarters from Coral Gables, Florida, to Vista, California, earlier in 2001 and employs 55 people.

This news release contains forward-looking statements. The company wishes to caution the reader of this news release that such forward looking statements are subject to various known and unknown risks and uncertainties, including the possibility that the company's stated goals will not be fulfilled in whole or in part. Additional information on factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission.