Aqua Care Systems Inc. Announces Partnering Agreement With Clean Water Technology Inc.

Business Editors

VISTA, Calif.--(BUSINESS WIRE)--Nov. 20, 2001

Partnering Agreement Focuses Upon Marketing Expanded Water

Filtration Products and Services to Industrial Customers

Aqua Care Systems Inc. (Nasdaq:AQCR) today announced it had signed a Partnering Agreement with privately held Clean Water Technology Inc. (CWT) of Santa Barbara, Calif., whereby Aqua Care possesses the rights to market CWT's Bubble Aggregate Managed Mixing (BAMM(TM)) air flotation system, as well as certain other CWT products and services.

The purpose of the Agreement is to provide Aqua Care's industrial customers with leading-edge technology and expanded product and service offerings by optimizing the management and marketing strengths of Aqua Care along with the technological expertise of CWT. The Partnering Agreement grew out of a working relationship between the companies that began in summer 2001.

BAMM(TM) is a proprietary technology (patent applied for) that works in traditional Dissolved Air Flotation (DAF) and clarifier applications, but is vastly superior to traditional DAF technology. The United States has an industrial market demand for more than 200,000 systems, not including municipal waste or animal waste applications, which may be many times larger than the industrial sector.

BAMM(TM) is the new and improved replacement for Bubble Accelerated Flotation (BAF(TM)) systems, also developed by CWT. BAMM(TM) provides lower operating costs, uses 40 percent fewer chemicals, creates dryer solids and occupies one-tenth the footprint of a comparable DAF unit.

The key to the system is the Water Air Mixer that thoroughly mixes the influent with air or other gas before reaching the tank.

H. Martin Jessen, president and chief executive officer of Aqua Care, stated: "Aqua Care is pleased to form this Agreement with Clean Water Technology and we are looking forward to leveraging our combined management, marketing and technological expertise. Together, we are primed to achieve our mission of serving an expanded customer base by developing innovative technologies that lead to the safe and efficient use of water."

Scott Heffner, general manager and vice president of Aqua Care's Industrial Division, said: "CWT's innovative BAMM(TM) system represents a break-through in air flotation and separation technology. Our sales representatives have had good initial success marketing the system which also gives us entree into the multi-billion dollar re-use and purification markets. Each BAMM(TM) installation creates a solids handling opportunity for Aqua Care's products and vice-versa."

"Through the Partnering Agreement, Aqua Care has been retained as a consultant to CWT and we are excited about our access to their marketing and sales resources. This unique alignment of our companies will allow each of us to benefit from incremental sales opportunities," commented Dan Neveau, chairman of Clean Water Technology Inc.

Dwain Morse, founder of Clean Water Technology Inc., added: "Clean Water Technology has been a technology innovator since its inception. Now, we will have access to greater knowledge of the water business along with greater speed to market for our advanced products."

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, Fla., to Vista, Calif., earlier in 2001 and employs 80 people.

Clean Water Technology Inc. provides solutions for industry in several areas of water and wastewater treatment. The company develops and markets innovative water treatment technology such as the Bubble Accelerated Flotation (BAF(TM)) system and the Bubble Aggregate Managed Mixing(TM) (BAMM(TM)) System, which revolutionized flotation separation.

These unique technologies have been implemented in water recovery, process improvements, source reduction, pretreatment before membrane technology, product recovery and aeration applications, and contaminant removal (e.g. Biological Oxygen Demand -- BOD; Chemical Oxygen Demand -- COD; Total Suspended Solids -- TSS; Total Dissolved Solids -- TDS; Fats/Oils and Grease -- FOG; Volatile Organic Compounds -- VOC; metals and bio-growth).

The company's systems serve a wide array of industries from food processing to textile screen printing. The company has headquarters in Santa Barbara.

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.