Empyrean Communications Inc. EPYR reports that due to unanticipated circumstances, management has decided not to proceed with the acquisition of Basalt Specialty Products, Inc (BSP). Management has also determined that this transaction would not be in the best interest of Empyrean shareholders in consideration of the company's current capital structure and revenue expectations.

Management is currently reviewing several additional opportunities which have recently developed. The possibility of changing the future business development direction of the firm is under strong consideration in conjunction with significant management changes.

An announcement of the corporate restructuring will be made soon as the company explores several merger and acquisition opportunities with other companies not related to the basalt fiber industry, and is able to quantify the resultant positive impacts upon its shareholders.

Note: "Safe Harbor" Statement Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development are forward looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results.

Contact Information: Empyrean Communications Inc., Houston Robert L. Lee, 713/260-7236