October 19, 2006 13:17 ET

Cimatec to Refile Financial Statements

TORONTO, ONTARIO--(CCNMatthews - Oct. 19, 2006) - Cimatec Environmental Engineering Inc. (TSX VENTURE:CEG) today announced that it will restate and refile its consolidated financial statements for the year ended December 31, 2005, as well as its interim financial statements for the first and second fiscal quarters of 2006. The financial results will be restated primarily to correct the calculations relating to stock option expenses and for accounting for warrants issued by Cimatec in 2005. It is anticipated that there will be a material increase in the amount of stock option expenses, but the exact amount has yet to be determined. The restatements will not affect Cimatec's cash position. The restatement adjustments were identified primarily through discussions with the Ontario Securities Commission. Subject principally to the audit of these adjustments to Cimatec's consolidated financial statements by its auditors, Cimatec currently expects revisions to its previously reported 2005 financial results to negatively impact on net earnings/loss by approximately $300,000. The previously filed 2005 consolidated financial statements of Cimatec and the auditors' report thereon should not be relied upon, nor should the previously filed 2006 three and six month financial statements. Cimatec will also revise and refile its Management Discussion and Analyses relating to such periods.

This announcement is being made in accordance with Cimatec's disclosure policies, adopted pursuant to applicable Canadian regulatory rules and policies.

Caution Regarding Forward-looking Statements:

This press release includes forward-looking statements and assumptions concerning the future performance of our business, its operations and its financial performance and condition. Such forward-looking statements are based on current expectations, which we believe to be reasonable at the time. We caution that all forward-looking information is inherently uncertain and that actual results may differ materially from the assumptions, estimates or expectations reflected in the forward-looking information. Accordingly, we warn investors to exercise caution when considering any such forward-looking information herein and not to place undue reliance on such statements and assumptions. We are under no obligation to update or alter any forward-looking statements or assumptions except as required by law.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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