Environmental Elements Announces Alliance with J. May Equipment Group

Source: Environmental Elements Corporation
Environmental Elements Corporationimore, MD – 03/28/02) — <%=company%> (AMEX: EEC) today announced that it has entered into an exclusive alliance with the J. May Equipment Group of Dallas, TX to market Urea Solutions for the power generation and pulp & paper industries. EEC will market a family of Urea Solutions to the hundreds of plants throughout both industry segments currently using selective non-catalytic reactors (SNCRs) and selective catalytic reactors (SCRs) to comply with federally regulated emission standards. The company will also utilize J. May Equipment Group's proprietary mixing technology in conjunction with its patented Ammonia-on-Demand™ (AOD™) product, which provides safe delivery of ammonia to selective catalytic reactors (SCRs) operated by utility and pulp and paper mill companies.

"This alliance is an excellent opportunity for EEC to provide cost-effective urea solutions to a large number of prospective new customers as well as to our existing clients. We believe our penetration into the rapidly growing NOx control market, particularly in the substantial SNCR segment, is significantly enhanced by this new alliance," said John L. Sams, EEC's president and CEO. "Furthermore, this alliance represents a substantial growth opportunity for our Engineered Products Business Unit."

The J. May Equipment Group technology involves a highly efficient and rapid mixing system that converts dry materials into process solutions. The mixing technology has been widely used in the agricultural and chemical industries where large quantities of dry materials are mixed to form process solutions.

SNCRs use liquid urea in the combustion process to control NOx emissions from boilers in power generation and mill production. The urea solution is injected into the furnace and reacts with the NOx to form harmless nitrogen and water. This process effectively reduces the NOx emissions associated with global warming.

"The alliance is direct result of the outstanding success of our patented AOD™ technology and our leading position in the growing NOx control business. With nearly 27,000 megawatts under contract, our AOD product is recognized as the proven, cost-effective means for eliminating the risk and potential liabilities of storing ammonia," said John L. Sams, EEC's president and CEO. EEC's AOD™ technology enables immediate conversion of non-toxic urea, a solid chemical commonly found in fertilizer, into ammonia, a necessary component in the reduction of nitrogen oxide emissions. The patented AOD™ system eliminates significant safety issues concerning the storage and transportation requirements associated with other forms of toxic ammonia.

Environmental Elements Corporation, a leading provider of air pollution control services, technology and equipment in North America for over 50 years, provides services, technology and equipment which enable a broad range of customers in the power generation, pulp and paper, waste-to-energy, rock products, metals and petrochemical industries worldwide to operate their facilities in compliance with particulate and gaseous emissions standards.

Certain of the statements included in this news release are forward-looking statements. These statements involve risks and uncertainties that could cause the actual results to differ from those expressed in or implied by such statements. These factors include the loss of bookings, increased competition, changes in environmental regulations, and other factors. Information on factors that could affect the Company's financial results is set forth in the Company's filings with the Securities and Exchange Commission, including reports filed on Form 10-K.