Industrial Ecosystems Featured On First Page of Navy Newsletter.

Business Editors and Defense/Environment Writers

BLOOMFIELD, N.M.--(BUSINESS WIRE)--Aug. 23, 2000

Industrial Ecosystems Inc. (OTCBB:IECS) announces that its bioremediation process and successful technology demonstration at the former Naval Fuel Depot, Pt. Molate, were featured on the front page of the Summer 2000 edition of the Navy's RPM News. This newsletter is distributed on a quarterly basis to major decision makers for base closure and cleanup; this includes all remedial project managers (RPMs), Base Commanders in the Navy and Marine Corps, and other staff in the Department of Defense.

Dennis How, PE of the Naval Facilities Engineering Service Center in Port Hueneme, Calif., wrote the article. He is on the board of directors of the Bay Area Defense Conversion Action Team (BADCAT), the sponsor of Industrial Ecosystem's technology demonstration at Pt. Molate.

"We are extremely excited about the potential impact of this article, as it reaches approximately 500 Navy and Marine Corps project managers and Base Commanders," states Tom Jarnagin, president of Industrial Ecosystems. "It gives us a good lead in to our military sales effort and also provides third party validation."

"The article is a critical part of our overall military base marketing strategy," stated Joe Knox, vice president of Industrial Ecosystems. "Now that our demonstration at the former NFD Pt. Molate has been completed and deemed highly successful, one of our primary challenges is to 'get the word out' to potential users within the military. The article in RPM News is a big step in that direction."

"We also are actively exploring and finalizing partner relationships with consulting engineering firms that have existing contracts with the Navy and other Department of Defense service branches," Knox said. "When specific site managers express strong interest in using our technology, the partnerships will help expedite the government procurement process by offering the use of existing contracts with preferred engineering firms that the military has already established."

In addition to the article in the RPM News and the partnership activity, Industrial Ecosystems reports that it continues to be a strong candidate for the preferred cleanup remedy at Site 3 of NFD Pt. Molate. On July 26, 2000, Knox made a presentation to Navy Remedial Project Managers (RPMs), including the RPM for NFD Pt. Molate, at the headquarters of the Navy's Southwestern Division of the Naval Facilities Engineering Command in San Diego. During that visit, Knox was informed that Industrial Ecosystems' bioremediation process would be included in the Navy's upcoming engineering evaluation/cost analysis (EE/CA) of cleanup alternatives at NFD Pt. Molate. Knox also has been asked to address the Pt. Molate Restoration Advisory Board on the final results of the technology demonstration at Pt. Molate on September 7, 2000.

Industrial Ecosystems Inc. provides cleanup, remediation and reclamation of hydrocarbon-contaminated soil using a proprietary microbial process. For additional information on IEI, visit the company Website: http://www.industrialecosystems.com.

Certain matters discussed in this news release are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. These factors include: the possible failure to sign revenue-producing contracts for remediation work in spite of the favorable publicity, the failure to sign any such contracts to date following the Company's demonstration at Pt. Molate, the possible cancellation or reduction of contracted work orders, potential customer rejection of the Company's product, competitive products and pricing, and the Company's ability to maintain its operations in spite of recent revenue shortfalls as detailed in IEI's most recent Security and Exchange Commission filings.