Underground Solutions Announces North American Distribution Rollout of its Fusible PVC Product Line.

Business Editors

PITTSBURGH--(BUSINESS WIRE)--May 12, 2004

Underground Solutions, Inc. (Pink Sheets:UGSI) announced today that it is implementing a scalable, multi-tiered rollout of its Fusible PVC(TM) product line throughout North America.

The Company's proprietary Fusible C900(TM), Fusible C905(TM), and Fusible PVC(TM) products will be marketed, distributed and installed via a unique system of national and regional waterworks pipe distributors, licensed "UGSI Fusion Service Distributors", and "UGSI Licensed Contractors". Specification activity, technical service and market development will be driven by a network of marketing reps and UGSI Regional Managers.

Mark Smith, the Company's CEO stated that, "The initial introduction of our Fusible PVC product line began recently in the Florida region and we are very pleased with the results to date. We have installed several Horizontal Directional Drilling projects and we have successfully completed initial technical reviews in many of the major Florida markets. We have numerous Fusible C900 projects that we will be completing over the next several weeks and we are delighted with the rapid acceptance by the municipal water industry. Now that we have proven the market acceptance of our Fusible product line in the Florida market, we have the confidence necessary to duplicate these results throughout the North American infrastructure market."

About Underground Solutions:

Underground Solutions has developed and continues to develop unique and practical technologies focused exclusively on the underground infrastructure industry. Total spending on this industry over the next 20 years is projected by the EPA and various agencies to exceed one trillion dollars. UGSI's products developed and successfully introduced into the market to date include Duraliner(TM), Fusible C900(TM) and Fusible C905(TM). To date, the Company holds or has pending 13 various patents impacting the infrastructure industry.

Underground Solutions recently developed and introduced its two new patent-pending products Fusible C900(TM) and Fusible C905(TM) PVC and were awarded the Innovative Technology Award for 2004 by NASTT. Both products are NSF-61 certified and cover a full range of piping diameters from 4 inch to 48 inch to provide the only available method of installing a continuous, monolithic, gasket-free PVC pipe or conduit capable of being used in numerous trenchless (no-dig) or conventional "open-cut" applications. Applications for this revolutionary technology cover every aspect of piping installations including both pressure and non-pressure situations in the water, sewer, electrical, industrial and telecommunications industries. According to a recent report by The Uni-Bell PVC Pipe Association, a leading authority on the piping industry, in excess of 420 million feet of PVC pipe is installed by the municipal infrastructure industry each year.

Duraliner(TM) is a unique patented process which allows the Company to replace deteriorated water lines and other pressure pipes with minimal excavation. It is the only pipeline renewal system resulting in a "stand alone" structural lining capable of handling internal minimum operating pressures of 150 psi with a 3.2 safety factor. Duraliner(TM) conforms to NSF 61 Standards for Drinking Water Components/Health Effects. In addition, Duraliner(TM) provides an equivalent design-life of new PVC pipelines (75 to 100 years) thus qualifying the rehabilitated pipe lines to be capitalized as new assets under the rules of GASB Statement 34.

Certain statements in this news release contain forward-looking information within the meaning of the Private Securities Litigation Act of 1995. Such forward-looking statements involve certain risks, assumptions and uncertainties, including the inability to generate and secure the necessary product sale, or the lack of acceptance of the company's products by its customers. In each case actual results may differ materially from such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or modified) will not be realized.