CN Railway Buys New EARTH Technology -- A First for Ground-Water Remediation.

Business Editors

MONTREAL--(BUSINESS WIRE)--July 9, 2001

EARTH (Canada) (CDNX:EAR) is pleased to announce that following months of extensive discussions and tests to verify the effectiveness of the TORRT (Total Oil Remediation & Recovery) technology for ground water treatment, Canadian National Railway Company (NYSE:CNI)(TSE:CNR) purchased EARTH's proprietary oil removal system.

The initial contract is valued at a price of just under $70,000. The system was shipped last week to Sydney, Nova Scotia and was installed by EARTH & CNR engineers at its local treatment facility ready for operational use. CNR has treatment facilities all over North America.

Commenting on this sale, Edward Akkawi, president & CEO, says: "We are proud to add the name of CN Railway to our growing list of clients. It is clear that the sales momentum we are beginning to witness is a sign of the success of our strategy. This momentum itself will steadily shorten lead times for sales". He adds: "I remind our stakeholders that EARTH's decision to move from an R&D company to one based primarily on the sales and marketing of TORR, was a major undertaking that would normally have required some 18 months of beta testing period prior to launch - EARTH never had that luxury. Instead, within the 9 months since patent protection for TORR was applied for, our able Sales & Product Development teams have worked diligently to give wide exposure to the technology, persuade potential clients of the benefits of TORR, sample and lab test and then agree on commercial frameworks for field trials and operational requirements. Yes, there are no shortcuts for a new environmental technology, not even one that provides results bordering on the unbelievable".

According to Environment Canada, ground water accounts for 69% of the World's freshwater supply and in Canada 7.9 million people or 26% of the population rely on ground water for domestic use. Furthermore, it takes only one litre of gasoline to contaminate 1,000,000 litres of ground water and this problem is particularly severe in the Atlantic Provinces where there is high usage of ground water. Fear of leached contaminants affecting ground water has become a worldwide issue and the World Health Organization links it to widespread disease and genetic disorders like sterility.

The market for technologies to treat ground water is still being defined and is growing rapidly. EARTH is positioning itself to become a strategic player in this environment.

About EARTH's Unique RPA(R) & TORRT technologies:

-- No waste is created & none needs to be disposed of

-- Allows full recovery of sorbed oil, including emulsified oils

-- It is the only reusable hydrocarbon absorbent, making it economically and
environmentally friendly to use.

About CN Railways

-- CN is North America's only transcontinental railroad, and

Canada's largest railroad

-- www.cn.ca