Sharps Elimination Technologies Inc. Enters Into Letter of Intent With Sure-Way Systems, Inc.

Business Editors

DENVER, COLORADO--(BUSINESS WIRE)--May 16, 2003

Sharps Elimination Technologies Inc. (OTCBB:SEMT)(the "Company") announced today that it has entered into a letter of intent to acquire all of the issued and outstanding equity securities of Sure-Way Systems, Inc. ("SWS"). Under the terms of the letter of intent, the Company intends to acquire all of SWS's outstanding securities in exchange for 8,350,000 shares of common stock of the Company. Under the terms of the proposed transaction, it is anticipated that management of SWS will assume senior executive positions with the Company and join the board of directors of the Company.

The closing date will be forthwith upon completion of due diligence by both parties to the transaction. The closing of the proposed acquisition will be subject to certain conditions, including, but not limited to, negotiation and completion of a definitive agreement. There can be no assurance that the proposed transaction will be completed.

The medical waste sharps disposal market in North America is estimated to be over one billion dollars annually. The medical community is under constant pressure to cut costs, to be more environmentally friendly and to cut their medical waste stream. Further, due to recent changes in federal laws and regulations, such as H.R. 5178 and the OSHA blood borne pathogens standard, needle stick prevention has come to the forefront of the health care employers' concerns. The Centers for Disease Control and Prevention estimate that at least 800,000 injuries of health care workers from a needle stick (skin penetration by a used infected needle) occur each year.

SWS as developer, licensor, marketer and operator of its proprietary reusable sharps container service, is a North American market leader in terms of the safety and environmental benefits and hard dollar cost savings it offers to its customers. SWS is a corporation formed in the state of Montana with its corporate head office located in Deer Lodge, Montana. For over twelve years, the SWS has offered complete medical waste collection, transportation and disposal services including its revolutionary and patent pending sharps disposal system (the "Sharps Disposal Service").

SWS's Sharps Disposal Service is Federal Drug Administration (FDA) and Department of Transportation (DOT) accepted process and involves the collection, processing and disposal of sharps waste using an innovative, cost-effective system resulting in a 20% to 40% savings over current disposal methods. SWS has invested over $2.8 million and 7 years of work in the development of this patent pending proprietary sharps disposal system. In addition to its cost savings benefits, SWS's efficient disposal method reduces the physical handling of used needles by health care workers compared to previous disposal methods. This will significantly reduce the number of needle stick injuries received by health care workers, prevent the emotional trauma caused to individuals and lower the associated medical and legal costs to their employers.

SWS, in its efforts to meet all the waste and disposal needs of its customers, also offers confidential records shredding, silver recovery from healthcare and commercial x-ray films, x-ray machines and commercial photography labs. SWS enjoys an pre-eminent reputation for customer service, quality and professionalism and has never lost a customer once its services have been implemented.

SWS currently meets the needs of over 1,600 health care facilities, including selection by the state hospital associations in Montana, North Dakota, and Western Wyoming as the "preferred provider of medical waste services." SWS presently provides biomedical waste services to 100% of the health care facilities in Montana and over 60% of the hospitals in North Dakota and Western Wyoming. Corporate revenues are growing annually at an average rate of 40%+. As a result of the addition of the silver recovery and confidential documents disposal services to the existing Sharps Disposal Service division, SWS is predicting another 15% increase in annual revenues with the additional services which will be made available to its existing customer base.