Napier Environmental Technologies Inc.
TSX : NIR

Napier Environmental Technologies Inc.

May 26, 2005 17:33 ET

CORRECTION FROM SOURCE: Napier's Unsecured Creditors Approve Holding Proposal

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 26, 2005) - A correction from source is being issued with respect to the release issued on May 20, 2005 at 5:02 PM EDT. The corrections are as follows; the reference to Creditors in the previous release should read Unsecured Creditors and a sentence has been added to the end of the first paragraph.

Napier Environmental Technologies Inc. (TSX:NIR) today announced that Unsecured Creditors have voted in favour of the Holding Proposal filed by the company May 2, 2005 under the Bankruptcy and Insolvency Act. The Proposal provides Napier with a further 120 days in which to complete the restructuring and refinancing process currently underway and file a definitive proposal with creditors. Napier's secured creditors are not a party to the holding proposal or the definitive proposal.

A copy of the Proposal is available at the company's website http://www.napiere.com under the heading "Investor Info - News".

Napier is currently operating under the protection of the Bankruptcy and Insolvency Act. The company cautions shareholders to read this press release in conjunction with the implications of its current status, the final outcome of which will depend on the acceptance or rejection of the proposal the company ultimately makes to creditors.

Napier develops and manufactures highly effective, safe and environmentally advantaged surface preparation products for stripping paints and coatings, as well as a complete line of wood restoration products. Napier's products are protected by a portfolio of patents and trademarks, including 'Bio-wash and RemovALL'.

This press release contains statements that are forward-looking in nature. Such statements involve known and unknown risks and uncertainties that may cause the actual results of Napier to be materially different from those expressed or implied by those forward-looking statements. Such risks and uncertainties include, among others: the Company's status under the Bankruptcy and Insolvency Act, (general economic and business conditions, product selling prices, raw material and operating costs, changes in foreign-currency exchange rates) and other factors referenced herein and in the Company's Financial Statement for the period ending September 30, 2004, within the Management Discussion and Analysis, under the heading "Risk Factors and Financial Management".

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

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