Napier Granted Extension.

VANCOUVER, British Columbia -- Napier Environmental Technologies Inc. (TSX:NIR)

Napier today announced that the Supreme Court of British Columbia has approved an extension of the period to file a proposal to the creditors until January 17, 2005. The extension received the full support of David Gray, CIRP, of Campbell Saunders Ltd., the Trustee under Napier's Notice of Intention to File a Proposal.

Napier announces the departure of Janice Comeau, CFO and Corporate Secretary who left Napier as of December 1, 2004. Napier continues to rationalize its business model and reduce costs to levels more in line with its historic sales volume. Since the commencement of the restructuring process, Napier has reduced annualized costs by approximately $750,000 through staff reductions and fine tuning various fixed overhead contracts. All major customers and many creditors and in particular Napier's landlord Enbridge have continued to support Napier through this difficult period.

In order to ensure complete independence for Napier's Board of Directors, Wayne J. Henderson, has resigned as a Director of the company. As previously announced, Mr. Henderson is engaged to lead the company on an interim basis, while Napier develops a plan of restructuring.

The Toronto Stock Exchange neither approves or disapproves the contents of this news release which has been prepared solely at the discretion of management.