Napier Environmental Technologies: Update Report From the Annual General Meeting

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For Immediate Release

Napier Environmental Technologies: Update Report From the Annual General Meeting

CANADA, Jun. 19 -/E-Wire/-- Napier Environmental Technologies Inc (TSE:NIR.) is pleased to report on the proceedings and discussions from its annual general meeting held June 14, 2001.

Shareholders supported the re-election of directors Bradley T. Aelicks, Clifford T. Davis, Mike Muzylowski, Lionel G. Dodd and Peter D. Jefferey. All proposed items for the transaction of business were approved and ratified.

Management fielded a number of questions from shareholders concerning the recent decline in share price and whether it was related to the financial health of the corporation.

In response to these concerns the following summary should help clarify current status of operations.

The company is financially healthy with working capital of approximately $4.5 million. The month of May posted a new all time record high in sales volumes but has not met management's expectations. The trend in sales month over month has been positive for all months going back to December 2000 and has been steadily increasing each month.

While part of this trend is expected due to the historic seasonality of the business, management is encouraged that the trend of the sales has improved over the pattern of last year. Napier's sales team has reported that there are no losses of key points of distribution for our product line. The company also obtained a new national retail account in Canada that has boosted Canadian retail sales to new record levels, even though the general wood refurbishment market has been slower than normal due to a late spring with cooler and wetter weather.

Numerous regional paint stores have also been added to the retail distribution network in the United States. Although opening orders to these locations did not exceed the sizeable orders registered last year to partners such as Fred Myers, the pull through of products into this growing distribution web in the United States posted a new record high for US retail sales in May.

Again these sales levels have not met managements expectations but the trends are improving.

Industrial sales have been steady and are exceeding last year's levels to the end of May. Under the oversight of Napier's recently appointed VP of Industrial and International Operations there are several distribution arrangements under negotiation or implementation. As these participants are put in place and trained, contribution from the industrial product line is expected to continue to increase and should play a significant role in the last two quarters of fiscal 2001.

Even though sales trends are positive, management is evaluating cost containment issues as the infrastructure of the company has been increased in anticipation of higher growth than is currently expected.

Returning to the issue of declining share price, management believes that the recent selling volumes into a declining price is substantially the result of the liquidation of share positions from 1 or 2 shareholders for reasons other than the financial health of Napier or progress by the company in marketing initiatives.

In keeping with the practice commonly followed by public companies, management has adopted the following cautionary note regarding its news releases and will be following this practice in the future.

Forward Looking Statements:

This release contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause actual results to differ materially include: rapid technological and/or market changes in the industry; the ability to maintain and grow successful third party and customer relationships, to improve current products and develop new products, to adequately protect the company's proprietary rights and other factors described in the company's regulatory filings. Although we believe the expectations reflected in our forward looking statements are reasonable, individual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.

ON BEHALF OF THE BOARD OF DIRECTORS Clifford T. Davis, CEO and Chairman

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

Napier Environmental Technologies

http://www.napierenvironmental.com

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