Equity Technologies & Resources, Inc. Announces Board Approval of Preferred Stock Dividend.

Business Editors

LEXINGTON, Ky.--(BUSINESS WIRE)--July 2, 2001

Equity Technologies & Resources, Inc. (OTCBB:ETCR) announced today that its Board of Directors approved a preferred stock dividend for the benefit of its common stock shareholders at its recent meeting on June 28, 2001. Frank Dickey, President, said, "Management is pleased that the Board of Directors is rewarding those shareholders who demonstrate their confidence in the future of the Company and its wholly owned subsidiary, Verified Prescription Safeguards, Inc."

In describing the dividend plan, Dickey said, "One share of Class A, non-voting, convertible preferred stock, with a face value of $500.00 will be issued for every 500 shares of common stock to shareholders of record on July 16, 2001. To be eligible to receive the preferred stock dividend, each holder of the required shares of common stock must be the official owner of those shares, on the record date of the dividend, according to the records for all common stock certificates issued or according to the records of any brokers holding such shares in the name of the owners of those shares. At the end of one year from the record date, each share of preferred stock will be convertible into common stock with a value of $500.00, provided the holder of each preferred share owns 500 shares of the Company's common stock at the time notice of conversion is given by the preferred shareholder to the Company. Holders of fewer than 500 shares, or fraction thereof, are neither eligible for the preferred stock dividend or conversion. The preferred stock may be converted to common stock during the thirty-day period immediately following the one-year anniversary of the record date, July 16, 2002." Dickey further explained, "Each share of preferred stock will be convertible into common stock with a total value of $500.00. The conversion rate will be 90% of the average of the closing bid and closing asked price for the common stock of Equity Technologies & Resources, Inc. during the 20 trading days immediately preceding the specific date the preferred shareholder gives notice to convert."

By way of further explanation Dickey said, "The preferred stock dividend will be paid as soon as possible after the record date, subject to verification by the transfer agent of each common stockholder eligible to receive the preferred stock dividend. Following verification, each eligible shareholder will receive a preferred stock certificate and instructions as to the holding period and method of conversion. Any investor's questions concerning issues of stock ownership should be directed to the Company's transfer agent, Signature Stock Transfer, Inc., 14675 Midway Road, Suite 221, Addison, Texas 75001, 972/788-4193, which will serve as the conversion agent," he said. Dickey also said, "Neither the directors nor the officers of the Company are participants in this dividend."

This press release contains forward-looking statements that reflect the Company's current expectations regarding future events. While these statements reflect the Company's best current judgment, they are subject to risks and uncertainties. Actual results may differ significantly from projected results due to a number of factors, including, but not limited to assumptions beliefs and opinions relating to the business and growth strategy of Equity Technologies & Resources, Inc., and implementation thereof, based upon the Company's interpretation and analysis of financial and market conditions, the decisions of businesses with whom the Company is either engaged in business with or negotiating, healthcare industry trends and management's ability to successfully develop, market, sell and implement its e-commerce and internet solutions, clinical and financial e-transaction services and software applications to physicians, pharmacies, governmental agencies, laboratories, insurance companies, HMO's, and payers. These factors and other risk factors are more fully discussed in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any intent or obligation to update any forward-looking statements.