2004-01-22 06:15:45

Hydro Environmental Resources announces first sale of chemical by-product and conclusion of field test

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p> VANCOUVER, Wash., Jan. 22, 2004 (PRIMEZONE) -- Hydro Environmental Resources, Inc. (OTCBB:HYVR) Interim-CEO Mark Shmulevsky said: "We are pleased to announce our first sale of the by-product produced during the production of pure commercial-grade Hydrogen at low-pressure in our reactor. Over the past 12 months, we have completed all necessary testing and third-party lab analysis of the byproduct for content and purity. We have begun the process of identifying strategic partners interested in the purchase of these chemical by-products. Our by-product has a number of uses in both commercial and industrial applications. The by-product can be easily removed from our vessel after the initial materials have been chemically consumed during the production of hydrogen. We believe the added revenue opportunity from the sale of these by-products, coupled with the production of hydrogen gas and recoverable heat energy produced, continue to make our technology extremely viable and cost-effective in the growing alternative energy industry." Each reactor, based on application size put in production, will yield a known amount of recoverable, sellable by-product. The company also concluded field testing of its reactor installed in the home of former CEO David Rosenberg. During its testing, Mr. Rosenberg hosted Oregon U.S Senator Ron Wyden. During the visit, the senator was shown the unit being utilized in the application of supplying hydrogen and heat energy. The unit was installed to supplement the existing hydronic heating system. This was the company's first field testing of the unit's development of both the unit's heat exchange process and by-product recovery. The field test has confirmed the overall cost of producing hydrogen to be significantly reduced through the capture and use of both the heat energy and by-product recovery. About Hydro Environmental Resources Hydro Environmental Resources, Inc. holds the rights to the Electrical Chemical Hydrogen Fuel Reactor (ECHFR), which is one of the first hydrogen reactors that eliminates the need for an outside energy source to produce a pure commercial-grade of hydrogen at low pressure. This proprietary process delivers a highly mobile, more cost-effective and physically safe production of hydrogen than alternative methods which require outside energy sources such as electricity, solar power and fossil fuels. The Company (HERI) was founded in 1998 with the primary goal of exploring avenues to improve the global environment through the development of safe and efficient methods of alternate energy production. The HERI team is focused on the production of alternate energy in the form of hydrogen gas, heat recovery, and waste treatment, clean and potable water, through its breakthrough technologies. Today the ECHFR can provide environmentally safe and cost-effective hydrogen and heat energy to meet the needs of the enormous alternative energy industry. Safe Harbor: This press release may include statements which are considered "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by their use of terms and phrases such as "believe", "expect", "plan", "anticipate" and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from Hydro Environmental Resources. These factors include, but are not limited to, the following: the cost and timing of development and market acceptance of Hydro Environmental Resources hydrogen generation systems competitive factors, such as price competition and new product introductions, other factors detailed from time to time in Hydro Environmental Resources, Inc. filings with the Securities & Exchange Commission. CONTACT: Hydro Environmental Resources, Inc. Mark Shmulevsky 360-883-5943