Ultra Guard Receives Glowing Review at California Conference.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 13, 1999--

In December 1998, Service Systems International Ltd. (OTC BB:SVSY) shipped an Ultra Guard(TM) UV System to the Los Angeles County Sanitation District to undergo testing of the system's ability to disinfect wastewater to California Title 22 Guidelines. Title 22 certification is an operational guideline that is recognized as the most stringent in the USA and is a prerequisite to most sales in California. Obtaining Title 22 accreditation of the Ultra Guard(TM) UV System will facilitate entry to the lucrative California wastewater treatment market. The size of the California water and wastewater market can be exemplified by an article in the July/August 1999 issue of WaterWorld. A survey of the California cities of Fresno, Los Angeles, Oakland, Sacramento (city & regional county), San Diego and San Francisco showed projected expenditures on water facilities in fiscal 1999 of approx $880 million with projected 5-year expenditures of over $4.2 billion. The same six cities also indicated planned fiscal 1999 expenditures on wastewater facilities of $805 million with projected 5-year expenditures of over $2.3 billion.

At the Energy Efficiency Forum held in San Diego on Aug. 30-31/99 (jointly sponsored by the US Department of Energy (DOE), Electrical Power Research Institute (EPRI), and Pennwell Publications) the Los Angeles County Sanitation District (LACSD) reported on the findings of the five-month testing program using Ultra Guard(TM)'s full scale Production Demonstration Unit (PDU).

The intent of the testing was, among other objectives:

1. to verify the Technology's ability to consistently meet the

reuse criteria/disinfection objectives of California's stringent

Title 22 governing municipal wastewater quality (2.2 total

coliform per 100 ml)

2. to compare its energy requirements to the system initially

used to set the Title 22 standard.

According to the presenter, Mr. Ziad El Jack (Project Engineer, LACSD), "Based on the Ultra Guard(TM) test results, the LACSD research team believes the Ultra Guard(TM)'s new, low-pressure high-intensity Technology is closer to being considered as an alternative for wastewater disinfection purposes at our plants." LACSD is responsible for the operation of eleven wastewater treatment plants (ten of which are classified as water reclamation plants).

The LACSD study's findings were:

-- UV irradiation is effective in inactivating total coliform in

the Pomona tertiary effluent. Using Ultra Guard(TM)'s Equipment,

a UV dose of approximately 50 mWs/cm2 would achieve the level of

2.2 MPN/100 mL or less, as required by Title 22. This compares to

a dose of 100 mWs/cm2 required by the low-pressure low-intensity

technology previously tested.

-- For the Pomona tertiary filter effluent, UV doses of

approximately 60mWs/cm2 would ensure a four log inactivation of

MS2 coliphage compared to a dose of 120 mWs/cm2 required by the

low-pressure low-intensity technology previously tested.

-- Substantial savings in the number of lamps and energy usage

can be achieved by using an Ultra Guard(TM) low-pressure high-

intensity system instead of low-pressure low-intensity system.

The report concludes: "The energy usage estimates associated with each system tested were calculated based on the design criteria set in the UV Disinfection guidelines for Wastewater Reclamation in California [NWRI, 1993]. A substantial saving in energy usage of 12.7% is achieved by using low-pressure high-intensity lamps, when the same safety factors are applied to both lamps."

Given the unique features of the Ultra Guard(TM) System LACSD suggested that modification of the present guidelines would be justified. They cited the impact of modifying just one of the design criteria to reflect Ultra Guard(TM)'s automated cleaning feature. When the Title 22 guidelines were established they were based on the performance of low-pressure low-intensity systems without automated cleaning. The automated cleaning feature is recognized to enhance transmittance through the quartz sleeve. By changing the guideline prescribed 'transmittance through the quartz sleeve' factor from 0.7 to 0.8 the energy savings almost double to 23.3%.

Other features of the system also impact on reducing energy consumption and significantly lowering the number of lamps required. LACSD will submit their final project report to the California Department of Health Services for their consideration to adopt this new low-pressure high-intensity UV technology in the state of California for wastewater disinfection. An excerpt from the LACSD presentation addresses some of Ultra Guard(TM)'s features: "The new System's unique reactor design was found to have a great impact on delivering a more uniform and effective dose. The System also has the added versatility of an adjustable set point for the UV output whereby the lamp can be programmed to deliver a higher dose during peak flow conditions; hence, increasing the efficiency of energy usage."

Peter Colak, V.P. Sales & Marketing -- UV Systems Technology Inc. reports, "LACSD's findings are significant in as much as they add another reputable entity to the list of independent studies confirming our claims of superior performance and energy savings. Contingent on the extent of credit that the California Department of Health Services (DHS) accords in the Title 22 review for Ultra Guard(TM)'s automated cleaning, higher germicidal intensity and other unique design elements of Ultra Guard(TM)'s Technology, California users would benefit by 25-50% energy saving over the present benchmark for energy efficiency.

Additional savings accrue from the significant reduction of lamps required and associated operating/maintenance costs. Depending on the DHS imposed safety factors the number of lamps would be 15-30 times less than at present. This means that a Municipality with a 10 MGD plant could conceivably meet their disinfection needs with a 100-lamp Ultra Guard(TM) system instead of a 3000 low-pressure low-intensity lamp system.

Given its water shortages the state plans to increase water reclamation ten fold in the coming years. We are excited about the potential of the California marketplace and the tailored fit of Ultra Guard(TM) in helping the state achieve its water conservation objective through economical recycling of wastewater. The recycling trend generates an acute need for efficient disinfection technology. Furthermore, at EPRI's annual conference (June 29/99), Mr. Keith Carns, EPRI Director, stated that presently 10% of the wastewater plants in the U.S. use ultraviolet disinfection and that this number will rise to 35% by the year 2010. Wastewater disinfection is an exciting market sector for which Ultra Guard(TM) is uniquely positioned to grow and capture significant market share.

Another market with even larger potential is the potable water sector. There is an extensive peer review being conducted across the U.S. to validate the findings that UV is effective in the inactivation of cryptosporidium at very low doses. Ultra Guard(TM) has accepted an invitation to participate in a 6-month study that will evaluate the effects of UV energy on giardia inactivation among other potable water parameters. This study is being conducted at the Orange County wastewater treatment plant. We are confident that the excellent test results in LACSD will be repeated in the upcoming tests in Orange County and ultimately open a vast new market to us. Testing begins in December 1999." Mr. Colak sits on the Water Environment Federation's Disinfection Committee and has been invited to comment on different aspects of the EPA's Environmental Technology Verification program.

Certain of the foregoing information are forward-looking statements regarding future events or the future financial performance of the company, and are subject to a number of risks and other factors which could cause the actual results to differ materially from those contained in the forward-looking statements. Among such factors are: general business and economic conditions, customer acceptance of and demand for the Company's products, the Company's overall ability to design, test, and introduce new and improved products on a timely basis, regulatory constraints, and the risk factors listed from time to time in documents filed by the Company with the SEC.