Ecomat Reports Third Quarter Fiscal Year 1997 Results.

MAMARONECK, N.Y.--(BUSINESS WIRE)--Nov. 13, 1997--Ecomat, Inc. (NASDAQ:ECMT) reported results for the third quarter ended September 30, 1997. Revenues in the third quarter rose to $128,499 compared to $117,374 in the third quarter of Fiscal Year 1996, an increase of $11,125. The Company also reported a net loss of $.18 per share or $631,608 for the third quarter as compared to a net loss of $.12 per share or $295,621 for the third quarter a year ago.

For the nine month period ended September 30, 1997, the Company's revenues were $468,187, an increase of $141,580 or 43%, versus revenues of $326,607 in the same period last year. The Company recorded a net loss of $.39 per share, or $1,392,263 for the nine month period ended September 30, 1997 compared to a net loss of $.41 per share, or $973,191, for the same period last year.

Diane Weiser, President and Chief Executive Officer, stated, "Ecomat's sales have risen more than forty percent in the first nine months of fiscal year 1997, demonstrating that our strategy of penetrating the dry cleaning and laundry market through company-owned facilities and franchises is working. We have opened or acquired three additional company owned facilities in New York, and Connecticut and three new franchise facilities have opened in the last nine months. Ecomat has also signed several new franchise agreements in the U.S. and overseas."

"As we assimilate these new businesses into the Ecomat system, we are providing them with the necessary training and support to be successful," Ms. Weiser added; "In order to implement Ecomat's aggressive growth plans, we increased operational expenses during the quarter and utilized the proceeds of our public offering, making a substantial investment in personnel, marketing, equipment and services."

Ms. Weiser emphasized, "Ecomat's environmentally-sound process is gaining acceptance and we intend to leverage our increased visibility to give our franchises a solid brand identity. This, along with administrative support, advanced systems and Smart card technology, will enable us to develop strong franchises worldwide and set a new standard in the industry."

"During the remainder of 1997," Ms. Weiser noted, "Ecomat will concentrate on expansion into target regions. Franchise inquiries have escalated and we will screen these prospects to ensure a good fit with Ecomat's objectives. At the same time, we will carefully monitor expenditures so that we can move closer to our goal of profitability. Ecomat is building an excellent team of employees, franchisees and a cadre of satisfied customers. Going forward, these will be the key ingredients in our success."

About Ecomat

Ecomat, Inc. fulfills an essential consumer need by providing garment and fabric cleaning and laundry services, using a unique, environmentally-sound process. Headquartered in Mamaroneck, New York, Ecomat operates stores in New York and Connecticut and has several franchises and franchise agreements in process covering locations throughout the United States and overseas. Additional information can be obtained by visiting Ecomat's web site at http://www.ecomat.com.

Cautionary Statement

The Company's quarterly and annual operating results are affected by a wide variety of factors that could materially and adversely affect its revenues and profitability, including the timing of customers' purchasing of services, the implementation of franchise agreements, market acceptance of Ecomat's process and competition. As a result of the foregoing and other factors, Ecomat may experience material fluctuations in its future operating results on a quarterly or annual basis which could materially and adversely affect its business, financial condition, operating results and stock price.

This press release contains certain forward-looking statements and information relating to Ecomat that are based on management's beliefs and assumptions made by and currently available to management. When used in this report, words such as "intend" and words and phrases of similar import, as they relate to Ecomat, are intended to identify forward-looking statements.

These statements reflect the current risks, uncertainties, and other assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, technological change, franchise opportunities, changes in industry practices, one-time events and other factors described in the Company's offering prospectus. Based upon changing conditions, should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary from those described herein. Unless otherwise stated above, Ecomat does not intend to update these forward-looking statements. -0-

                          ECOMAT, INC.

                            Summary
              Consolidated Statements of Operations
                           (Unaudited)


                             Three Months             Nine Months
                         Ended September 30,      Ended September 30,
                           1997       1996           1997       1996
 Revenues
 Cleaners and laundry
  services               $126,820    $117,374      $354,690   $ 326,607
 Franchise revenue                                  111,818
 Royalties                  1,679                     1,679     326,607
                          128,499     117,374       468,187     326,607


Costs and expenses        777,594     389,685     1,937,916   1,236,836


Operating loss           (649,095)   (272,311)   (1,469,729)   (910,229)


Other income expense       17,487      23,310        77,466      62,962


Net loss               $ (631,608) $ (295,621) $ (1,392,263) $ (973,191)


Net loss per share          $(.18)      $(.12)        $(.39)      $(.41)
-- Full Service Center
-- Wash and Fold Service
Laundromat

Weighted average number
 of shares outstanding  3,603,125   2,400,000     3,602,500   2,400,000
-0-

CONTACT: Investor Contact: Diane Weiser

914-777-3600

or

Media Contact: Laine Wilder

914-777-3600

--30--al/ny*