ESC Envirotech - Statement of Claim.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Nov. 21, 1996--ESC Envirotech Systems (VSE: EVO.)--ESC Envirotech Systems Corp. has been informed that a statement of claim for $6.1 million has been filed by Mr. Gerhard Schmidt against Envirotech Systems Corporation (the "Company") and others.

The claim alleges that Schmidt was precluded from participating in profits associated with the development of the sludge drying technology. The Company's position is that this action is unfounded, frivolous and vexatious when considering the following facts:

1. In September of 1991, a corporation named Axbridge Holdings Ltd. owned by Gerhard Schmidt, commenced an action against Envirotech Alberta Inc. claiming that Axbridge Holdings Ltd. had developed a body of knowledge with respect to "sludge dehydration technology". As part of this lawsuit, the plaintiff alleged that Envirotech Alberta Inc. entered into and breached a license agreement with Axbridge Holdings Ltd. This lawsuit was dismissed against Envirotech Alberta Inc.

2. In December of 1991, Axbridge Holdings Ltd. commenced an action against 21st Century Design Inc., among others, claiming that Axbridge Holdings Ltd. was entitled to ownership of certain work related to "sludge dehydrator" technology. This lawsuit was dismissed.

3. In March of 1993, Gerhard Schmidt commenced an action against Envirotech Alberta Inc. claiming that he was owed approximately $100,000.00. This action was discontinued.

4. Radiant Plate Drying Systems Inc. is the current name of the Company which used to be known as Envirotech Alberta Inc. 21st Century Design Inc. no longer exists.

Although the Company and its solicitors were not served, the Company has taken a vigorous proactive position in issuing a statement of defense. Further, the Company will seek a summary dismissal and restraining order.

After review of the Alberta court records, Mr. Schmidt and his company, Axbridge Holdings Ltd., have been previously cited in as many as 73 separate actions. The Company's position is that this is a nuisance lawsuit containing claims previously dismissed in the Alberta courts.

Additionally, the Company will not be proceeding at this time with its previously announced (October 02, 1996) proposed private placement of 2,800,000 units at $0.15 per share.

ON BEHALF OF THE BOARD OF DIRECTORS

Michael S. Gustavson, Director

ESC Envirotech Systems Corporation, through its wholly owned operating and engineering subsidiary, Radiant Plate Drying Systems Inc. has developed a revolutionary and environmentally friendly drying system called the Radiant Plate Dryer(TM) "RPD(TM)". The mobile, patented machine is designed to process and dry, large volumes of various industrial and municipal waste sludges, delivering recycled, sterile and "inert" revenue generating end products.

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The Vancouver Stock Exchange nor any other regulatory body has reviewed and therefore does not accept responsibility for the adequacy or accuracy of this release.

CONTACT: ESC Envirotech Systems Corporation

Michael S. Gustavson, 604/685-8496

604/683-2256 (FAX)