Enviro-Energy Corporation Achieves First Time Profitability and Significantly Improves Balance Sheet

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FOR IMMEDIATE RELEASE

Enviro-Energy Corporation Achieves First Time Profitability and Significantly Improves Balance Sheet

WASHINGTON, SPOKANE, May. 20 -/E-Wire/-- Enviro-Energy Corporation (OTCBB:ENGY - Germany:676401-EVM.BER) is pleased to announce its financial results for the first quarter ending March 31, 2002.

Revenue increased 464.09% in the first quarter 2002 compared to the first quarter of 2001. Revenue was US $2,289,676 in the first quarter of 2002 compared to US $405,905 in the first quarter of 2001. The increase in revenue was primarily the result of our acquisition of Colvico, Inc. The Company reported a net profit of $85,931 in the first quarter of 2002 as compared to a net loss of $165,798 in the first quarter of 2001.

The Company made major progress in improving its balance sheet to create the opportunity to aggressively expand and grow our business. The Company completed a number of achievements in this area including:

* Acquisition of Colvico, Inc. for four million shares (4,000,000) of preferred stock with 4 to 1 conversion for a total of sixteen million (16,000,000) shares of common stock translating to $0.25 per common share valuation. Colvico increases assets to $7,044,243. * Discontinuance of Environmental Reclamation Inc. (ERI), thus eliminating a seriously negative cash drain and producing a potential stock dividend from the acquiring company.

With the above acquisition and discontinuance transactions, the Company achieved profitability and positive cash flow.

In February 2001 management announced that they were seeking to expand the business of the Company into other environmental businesses, launching a consolidation strategy in a highly fragmented industry. In just one year it has emerged from this strategy with a sharply defined and well-focused business providing bio-wastetreatment and energy conversion. The acquisition of Colvico, Inc. on February 1st, 2002 provided Enviro-Energy with an established profitable operating base and access to facilities and resources from which to launch innovative technology designed to transform farm animal manure into energy and amended organic soils (fertilizers). The Company develops and manufacturers its proprietary Enviro-Energy(TM) Bio-Waste Systems through its wholly owned subsidiary Energy Flow Management, Inc. (EFMI).

Management believes that operations will continue to improve throughout the year. Plans to strengthen the Company's management team are expected to accelerate as the Company is now clearly defined and on greatly improved financial footings.

"Having a solid operating company (Colvico, Inc.) from which to build our bio-waste business is a definite advantage," stated Michael Funk, President of Energy Flow Management, Inc. (EFMI). "We have the facilities, engineering and manpower needed to launch our technology. Our first system continues on schedule. Equipment and processing tanks are on site in Tillamook, with final assembly and testing under way. We are posting pictures of the system on our website.

"Understandably, virtually all of our efforts of late have been focused on this important first installation. With it up and running successfully we will be able to release management resources to follow up additional order interest. Company forecasts for the year are expected to be updated this quarter after the Company has had the opportunity to evaluate the impact of the Tillamook launch to order activity."

Enviro-Energy Corporation is a consolidator and operator of bio-waste treatment and energy conversion systems and technologies.

Energy Flow Management, Inc. is a wholly owned subsidiary of Enviro-Energy Corporation, responsible for developing, manufacturing and operating proprietary Enviro-Energy(TM) Bio-Waste Systems.

Colvico, Inc. is a wholly owned subsidiary of Energy Flow Management, Inc.

The above news release contains forward-looking statements. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of Enviro-Energy Corporation, Energy Flow Management, Inc. and Colvico, Inc. and their respective managements. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and are subject to a wide range of business risks, external factors and uncertainties, including without limitation, continued acceptance of the company's products, increased levels of competition for the company, new products and technological changes, the company's dependence on third party suppliers, intellectual property rights and the other risks detailed from time to time in the company's publicly available documents filed with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. Enviro-Energy Corporation, Energy Flow Management, Inc. and Colvico, Inc. assume no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise.

Enviro-Energy Corporation

Enviro-Energy Corporation,

Galen Loven, 509/921-9150,

[REDACTED-EMAIL],

Energy Flow Management, Inc.,

Mike Funk, 509/252-5827,

[REDACTED-EMAIL]

http://www.enviro-energycorp.com

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