MR3 Systems, Inc., to License its MR3 Technology to Modular Environmental Technologies, Inc. `MET', of Houston, Texas.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--July 25, 2000

MR3 Systems, Inc., (NQB:MRMR) announced today that it has entered into an exclusive, site-specific License Agreement with Modular Environmental Technologies, Inc. ("MET"), of Houston, Texas, to utilize its MR3 technology in the processing of electro-galvanizing line ("EGL") effluent generated from one of the major U.S. steel producers. The MR3 plant will separate iron and zinc metals from the EGL, resulting in a raw zinc source used for the production of zinc compounds, both for return back to the EGL and for potential outside markets, a process which can only be achieved efficiently by the MR3 technology.

This License Agreement is the first commercial licensing and strategic partner agreement for the Company, and thus represents an important milestone in the growth of MR3 Systems, Inc. The Company expects to enter into additional licensing agreements with MET, including a multi-million dollar, multi-site agreement for the processing of electric arc furnace dust generated from carbon steel mill manufacturing activities. Licensing and joint venture agreements with other strategic partners for different metals separations are also being negotiated. With MR3's plant in Butte, Montana ramping-up to full production, the Company's revenue and earning streams will be favorably impacted by both the existing and new businesses.

MET provides the industrial and municipal markets with proven, state-of-the-art wastewater and byproduct treatment technologies in an expedient and cost effective manner. MET currently owns a number of plants for byproduct production throughout the U.S. and soon Europe. MET offers its wastewater treatment and byproduct recovery services in ways that compliment the corporate financial and business philosophy of its clients and covers the steel, refining, chemical, metals finishing and related industries. MET represents an excellent strategic partner for MR3 Systems, Inc., because of its financial strength and experience in the engineering, installation and maintenance of industrial plants in many of the same industries targeted by MR3.

MR3 is a high-tech, state-of-the-art metals extraction and separation technology capable of converting hazardous liabilities into non-hazardous, profitable assets through the large-scale processing of industrial wastes and other complex metals sources into pure metals and specialty chemical products. The Company believes this to be the only technology available that can selectively and individually remove and purify all targeted metals from aqueous solutions economically on a commercial scale. The multi-billion dollar combined global markets for the MR3 process include the processing and treatment of electric arc furnace dust, semiconductor manufacturing effluent, mercury and hydroxide sludges, precious metals mining tailings and various industrial waste water streams.

Certain statements contained in this press release are forward-looking statements within the meaning of federal securities laws. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties, many of which are beyond the Company's control.