Blue Industries Corrects First Quarter Earnings and Releases Second Quarter Earnings.

Business Editors, Food Writers

PRINGY, France--(BUSINESS WIRE)--Nov. 20, 2002

Blue Industries, Inc. (OTCBB:BLUI) announced today that it incurred a net loss of approximately $1 million, or $.04 per share, for the nine months ended September 30, 2002, including a net loss of approximately $502,000, or $.02 per share, for the three months ended September 30, 2002.

The company expects to incur a net loss of similar magnitude during the fourth quarter. The following table presents comparative data for the first three quarters of 2002.

                        Three Months     Three Months    Three months
                        Ended 3/31/02    Ended 6/30/02   Ended 9/30/02

Sales (returns)          $ 391,681        ($ 51,448)       $  15,700
Cost of sales              341,557           15,406           56,360
                         ---------        ---------        ---------
Gross profit                50,124          (66,854)         (40,660)

Consulting revenue         475,351           52,800            7,650
                         ---------        ---------        ---------
                           525,475          (14,054)         (33,010)

Operating expenses         414,988          595,020          448,308
                         ---------        ---------        ---------
Net income (loss)        $  82,865        ($581,065)       ($501,791)

Net income (loss)
 per share               $     .00        ($    .03)       ($    .02)

Commenting on the second quarter results, Patrick Gouverneur, the company's recently appointed chief executive officer, said, "Our business is not yet mature. We are undergoing rapid change as we refine and implement our business plan. The process of establishing the utility of our products, expanding our marketing activities, developing a reliable supply chain, establishing manufacturing facilities, commencing commercial production and ultimately attaining a stabilized revenue and expense stream will not occur on a fixed time schedule. Therefore, we believe that quarter-to-quarter and year-to-year comparisons of raw financial data will be of limited utility as we transition out of the development stage."

Commenting on the company's plans for the future, Mr. Gouverneur continued, "While our Pringy facility is operational and we expect our Bangkok facility to become operational during the fourth quarter, orders from the Chinese Ministry of Health constitute the bulk of our order backlog. We are rethinking our manufacturing strategy and considering the implementation of a decentralized assembly and product support structure. This decentralized structure would be particularly cost effective in China where we can:

-- Cut our import duties in half by bringing in components instead of finished products;

-- Cut our facilities and labor costs in half; and

-- Reduce our shipping costs and local tax burdens.

We expect to complete our analysis in the next 30 to 45 days. At that time, we will either begin shipments to China from our Pringy facility or finalize arrangements for a Chinese manufacturing facility. Therefore, we do not expect to derive substantial sales revenue from China until the first quarter of 2003."

Liquidity and capital resources

The following table presents comparative balance sheet data as of March 31, June 30 and September 30, 2002.

                           March 31,       June 30,         Sept. 30,
                             2002            2002              2002

Current assets            $1,834,513,      $1,633,946       $1,740,430
Total Assets              $2,011,012       $1,830,629       $1,965,487
Current liabilities       $  680,691       $  661,565       $1,153,415
Stockholders equity       $1,249,501       $1,169,064       $  812,072

The company had $46,541 in cash and $972,381 in working capital at June 30, 2002. During the period ended September 30, 2002, the company's cash balance increased to $58,600 and its reported working capital decreased to $587,015. The reported working capital does not include approximately $900,000 in pre-paid parts and supplies purchases that will be shipped during the fourth quarter.

Additional information regarding the company's results of operations, liquidity and capital resources can be found in the financial statements contained in its quarterly report on Form 10-QSB which was filed with the U.S. Securities and Exchange Commission on August 21, 2002.

About Blue Industries

Blue Industries is a global leader in the field of safe drinking water. The company's water treatment products are based on patented technologies that make it possible to offer drinking water processing facilities to an end user at an installed capital cost of less than fifty cents per gallon of daily capacity. Depending on configuration, the company's current products can process between 1,500 and 15,000 gallons per day. The company currently serves customers in China, Thailand, Cambodia and the Middle East, and is conducting on-site demonstrations in Africa. The company's goal is to provide enabling technologies and products to satisfy the growing global demand for safe water in domestic, industrial, and agricultural applications.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward-looking statements. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated.