BBJ Environmental Solutions, Inc. Chairman Interviewed By CEOcast.

Business Editors

TAMPA, Fla.--(BUSINESS WIRE)--Aug. 7, 2001

BBJ Environmental Technologies' (OTCBB:BBJE) Chairman Robert G. Baker was interviewed by Ken Sorrel of CEOcast. CEOcast is the premier source of original and syndicated streaming broadcast interviews of Chief Executive Officers at public and private news-making companies. CEOcast's programming is distributed to millions of on-line investors at over 700 financial web sites as well as to more than 20,000 portfolio managers, buy-side analysts and traders at more than 3,300 North American institutions. Content is also disseminated to over 7,000 investment research professionals representing over 425 institutions. The audio interview is accessible at http://www.ceocast.com.

Below is the text of that interview:

CEOcast - This is Ken Sorrel. My guest today is Robert Baker. Bob is the CEO of BBJ Environmental Technologies and BBJ is an over-the-counter Bulletin Board company, trading under the symbol "BBJE". Bob thanks for joining us this morning at CEOcast.

BBJ - Thanks for having me on, I appreciate it.

CEOcast - Your company is in the environmental business in a very broad sense helping people in the heating ventilation and a/c industry. Why don't you give us some of the background of the company and how you go about providing a very important solution?

BBJ - Sure. The company came out of early experiences that I had back when we first started hearing about indoor air quality problems. I was Vice President of Administrative Services of MD Anderson Cancer Center in Houston, Texas in the mid to late 80's and we had several incidences where indoor air contamination led to problems. In four cases spread over about nine months, we had four patients who contracted pneumonia and expired. We felt that an indoor source of a fungus was a contributing cause to that. Of course, the primary cause was their immune systems were very weak. It caused us a lot of concern because we had a weak enough population that we didn't want to contribute anything else to them. We did find we had growths in the air-conditioning system. As far as the maintenance of the system, our analysis showed we were utilizing all the procedures recommended as "state of the art" in the industry and still there were these fungus and growths in the system. In investigating further, we found such growth was common in air conditioning systems and there wasn't any way to prevent it other than to coming through on a very regular basis and cleaning the system, which of course was quite expensive. That was what caused me to get interested in what then was a very new field of Indoor Air Quality ("IAQ").

I got very involved in it. I am active on several industry committees such as those in ASHRAE ("American Society of Heating Ventilating and Air-conditioning Engineers). I am a member of the operations and maintenance committee, the large building systems committee and a couple of others. In ASTM, I am a member of the Indoor Air Quality Committee; and I chair the indoor air quality committee for the Consumer Specialties Products Association out of Washington, D.C. So I am very knowledgeable in the field of IAQ and this background allows me to bring together not only the engineering side but also the chemistry side and health care side. Coming from that we put together a team that developed the formulations that we now market. Our niche is that we manufacture very, very environmentally sensitive products. They are geared to the patient population that we had at MD Anderson so they are formulations that are not irritating to sensitive people and yet are very effective in cleaning and maintaining AC systems. We have developed several products that solve other problems in the area using basically the same low concentration, low toxicity technology.

CEOcast - What makes this work so well compared to other things that have been tried?

BBJ - Well there are a number of things that are tried. The key here is that with our prime product, BBJ MicroBiocide, a technician will clean the system and then treat with BBJ MicroBiocide and you don't get the re-accumulation of the slime and growth that makes the system so difficult to clean. So when the technician comes back six months later, they have essentially a clean system. So they can rinse the system off, re-apply the treatment and maintain the system in essentially like new condition indefinitely as long as they maintain with periodic treatments. The other approaches traditionally have been different coil cleaning formulas, some of which are alarmingly toxic. They must be used when the building is not occupied and very carefully rinsed off or when people come back to work you will have them running out the door screaming for attorneys and TV cameras, sometimes not in that order, but that is usually who shows up, and causing a lot of problems in the workplace situation. That is our main distinguishing feature. Our objective is to eliminate a lot of labor and secondly to do it in a way that is just environmentally neutral and not irritating even to sensitive people.

CEOcast - So your product is non-toxic?

BBJ - Well, nothing is non-toxic. I like to use the example that milk is toxic and very toxic to some because some people have allergies to milk...but relative to many other things it is extremely low in toxicity. One of the criteria that we use is the U.S. Dept. of Transportation standard for what must be shipped as a hazardous material. We will not produce a product that has to be shipped under that designation. Also the U.S. EPA categorizes registered products in categories 1, 2, 3, or 4. Level 1 being poison and Level 4 being essentially non-toxic. Our products fall into the category 4 level. We do verify that through lab studies. We take a good deal of care to make sure that what we market truly fits in that category.

CEOcast - How big is the market?

BBJ - The market is incredibly large. Just in the U.S. alone, there are over 50 million air-conditioned homes and many of these have multiple A/C units and that is just the home market. We figure that our products have a potential for each A/C unit out there of at least $2 per year in revenue. There are approximately 5 million commercial buildings in the U.S. alone, buildings that are air-conditioned and they are all potential customers. For instance, one of the places we have a test underway is the Pentagon. There are several thousand A/C systems in the Pentagon and each one is enormous so that building alone uses an incredible amount of these types of products annually. So revenues in this field are truly enormous.

CEOcast - Who do you sell to?

BBJ - We really have 3 ways of going to the market. The largest market, which is the residential A/C market, is served by a number of distributors that are regional or local. We have a group of manufacturing representatives that call on these distributors, who in turn sell to the individual HVAC contractors, which range from small firms that might do a half million a year in revenue to ones that do several million. BBJ has several regional sales managers who interface with the manufacturing reps and supervise them. In the commercial area, we sell through strategic channel partners...currently we have strategic agreements with NALCO (the worlds largest water treatment company), Purolator (air filtration company), and American Air Filtration. We manufacture the products under their name...and they call on the commercial building market and the institution building market. A new market for us is the food industry. Because of the recalls on hamburger and other foodstuffs, there is a tremendous concern in the food industry about airborne contamination. Listeria for instance, which has received a lot of press in contaminating hamburger meat, is carried through the air and we have found that manufacturing facilities in the food industry are extremely interested in our product because it prevents contamination up front. And they have realized that cleaning periodically really isn't a good way to keep harmful and disease causing organisms from getting into the air. So we started calling on people in that industry and have received a very strong reception.

CEOcast - Some of these contaminants of the system can be rather potent, can't they?

BBJ - Yes. Fortunately, most of the contamination just makes you feel rotten. Most of what is in your home and building A/C units results in bad odors because when these things grow they put off gases and smell terrible. Most of these are volatile organic compounds that smell bad and you don't like them. Also, they trigger allergies in people with fully intact immune systems. So what will happen is you will have upper respiratory infections and more colds that you ought to have and you are congested a lot and feel lousy. Although that is not life threatening, it certainly is a downer for production for a company if all the people are sitting around blowing noses and worrying about how they feel. They are certainly not concentrating on work. It just diminishes their quality of life. There are a few bad actors out there. Legionella usually gets all the press but Legionella really isn't such a big factor in A/C systems. It is more associated with water systems but the aspergillis that we ran into at MD Anderson is a pathogen that can actually lead to death. Listeria, e-coli, the list goes on and on. There are some organisms...especially for somebody whose immune system really isn't up to snuff (maybe they are tired, been traveling a lot or maybe they are just recovering from an illness) that if they get exposed to one of these organisms, it is difficult to shake it off.

CEOcast - One more question. You have described to us a company that has great potential. What should people watch for over the next 6 to 12 months to see if that potential is being realized?

BBJ - Well, people are going to be able to follow our sales progress. We have just really started marketing this past year. Our sales to date have been modest but we expect that to grow significantly in the next 6 to 9 months. We have some new technologies that we will be introducing later this fall. We will be introducing a major new technology at the International Heating and A/C Exposition in Atlantic City in January 2002, and we will be engaging in field tests of that throughout the fall. This is basically an automated cleaning system for A/C systems. We have talked to a lot of our people in our distribution network about that and they are excited because it will be a major change to the equipment side itself.

CEOcast - Bob, thanks so much for being with us.

BBJ - Well thank you very much.

CEOcast - I have been speaking to Bob Baker, CEO of BBJ Environmental Solutions Inc., a company that will help eliminate the odors and nasty growth in our heating and ventilating systems.

BBJ Environmental Solutions, Inc. develops, manufactures and markets products that eliminate air contamination in heating, ventilating, air-conditioning and refrigeration systems anywhere they are used (health care facilities, office buildings, residential homes, schools, governmental facilities, transportation vehicles, food plants, etc.). BBJ products are sold through private label partners, wholesalers and HVAC contractors who provide service across the U.S. All BBJ products are environmentally friendly, easy to use and biodegradable. To learn more on how you can improve the healthfulness of your environment, safeguard yourself and your family from the hazards of indoor air pollution and enjoy the benefits from reduced energy bills, please find additional information at http://www.bbjenviro.com.