SOURCE: MSE Enviro-Tech Corp.

January 28, 2008 09:30 ET

MSE Enviro-Tech Corp. Progress Report to Shareholders

BRENTWOOD, TN--(Marketwire - January 28, 2008) - MSE Enviro-Tech Corp. (PINKSHEETS: MEVT) (FRANKFURT: MEH) is pleased to provide shareholders with the following progress report, highlighting the achievements and milestones recorded in 2007, as well as management's outlook for 2008.

YEAR-END REVIEW AND PROGRESS REPORT

The March 26, 2007 announcement of a completed corporate reorganization and new business focus for MSE Enviro-Tech Corp (Company) launched a period of significant progress that continues today. The Company recorded numerous milestones in advancing its long term growth plan throughout 2007, beginning with the acquisition in March of the North American agency rights to the Hartindo product line, the world's most advanced fire inhibitor and fire suppression products. Subsequent achievements in independent product testing to North American standards, initial product introductions into specific market verticals and overall marketing and sales initiatives, have provided favorable groundwork for future opportunities.

In April 2007, the Company announced the launch of its new website, the opening of its United States office in Brentwood, Tennessee, and the appointment of Michael S. Robinson as National Business Development Manager. In June 2007, Mr. Robinson was promoted to the position of President and Chief Executive Officer.

Also in April 2007, the Company announced the introduction of Hartindo AF11E Fire Extinguishing Agent (April 19), Hartindo AF21 Fire Inhibitor (April 24) and the universal, multi-purpose Hartindo AF31 Fire Extinguisher (April 26).

In May 2007, introductions of the Titan 21 Fire Blanket (May 2) and DECTAN, a revolutionary water-based rust converter and heat shield for application on metal surfaces (May 30), continued the Company's long-term goals of acquiring high-value, low cost , products for the North American market were announced.

Independent Product Testing

In order to obtain the required product certifications for the Hartindo line in North America, a series of tests that complied with North American standards at independent testing laboratories commenced in the summer of 2007. Management is gratified to note that the results of all of the independent testing to date have been, and continue to be, very favorable.

In August 2007, MSE Enviro-Tech Corp announced that its Hartindo AF21 Fire Inhibitor was awarded a Class A rating following an ASTM E-84-07 Surface Burning Test. In September, the Company announced that AF21 had passed the requirements of the new U.S. National Flammability Standard for Mattresses through additional independent testing.

In November, the Company announced that the Hartindo AF31 multi-purpose, water-based, non-toxic and non-corrosive fire extinguishing and fire inhibiting agent had earned a Class A rating in successful independent testing. Also in November, the Hartindo Titan 21 Fire Blanket passed NFPA 701 testing at an independent laboratory.

Marketing & Sales Initiatives

While continuing to advance product testing towards North American certification, MSE Enviro-Tech Corp. made significant progress in building a sales and distribution network over the past year.

On September 5, 2007, MSE Enviro-Tech Corp. announced that it and Hartindo product supplier Megola Inc. had jointly signed a Letter Of Intent (LOI) with WoodSmart Solutions, Inc. to test the feasibility of incorporating the Hartindo AF21 Fire into WoodSmart's BluWood® treated wood products. Subsequent testing was encouraging and the parties to the LOI continue to work towards final testing of the BluWood ® Hartindo 21 product and a definitive agreement.

In November 2007, MSE Enviro-Tech Corp. and supplier Megola Inc. signed a joint Memorandum Of Understanding and Intent (MOUI) with Logistik Unicorp Inc. and CTT Group Inc., to establish distribution of Hartindo AF21 within the textile industry in North America.

Also in November, the Company and supplier Megola Inc. announced the signing of a definitive marketing and distribution agreement with Janus Products Corp. (Janus) for distribution and sales of the Titan 21 Fire Blanket for the residential markets within Canada and the United States. In December, the Company recorded a significant milestone when if announced receipt of its initial purchase order from Janus for deliveries of the Titan 21 Fire Blanket through the first quarter of 2008.

Other 2007 Highlights

Shares of MSE Enviro-Tech Corp. were called for trading on the Frankfurt Stock Exchange in September 2007, broadening the reach of the Company's stock into international markets. In Toronto on November 12, MSE and Megola successfully demonstrated the effectiveness of the Hartindo fire suppression products at the state-of-the-art Fire and Emergency Services Training Institute (FESTI), which is part of the Greater Toronto Airports Authority.

THE YEAR AHEAD

While management views the achievements of 2007 with gratification, there remains much to be done to fulfill the Company's vision of becoming a well established supplier of effective fire suppression and fire inhibiting products to the North American markets to enhance shareholder value and overall corporate standing in its industry.

Management is aggressively advancing its long-term strategy of having the Hartindo product line certified for use in vertical markets where our customers can obtain a competitive advantage in product efficacy, product pricing, or both. The Company believes that long-term growth and profitability will be accomplished both through potentially major agreements with distributors and end users such as WoodSmart Solutions, Inc., Logistik Unicorp Inc./CTT Group Inc. and Janus Products Corp., and through other distributors and agents across North America.

"The management team at MSE Enviro-Tech Corp., working closely with supplier Megola Inc. and prospective distributors across America will continue to work tirelessly towards achieving significant milestones in 2008, to continue to enhance shareholder value. We look forward to reporting on our progress in the weeks and months ahead. As we begin the New Year, I wish to thank our shareholders for their continued and valued support, and to take this opportunity to wish each of you a New Year of Good Health, Happiness and Prosperity"

... Michael S. Robinson, President & CEO

Cautionary Note About This Communication

This communication is provided to inform our shareholders, customers and potential customers and others on a regular and timely basis of rapidly occurring developments concerning our products and our business.

This communication contains disclosures concerning developments relating to our business and our products and services the actual results of which involve substantial risks and uncertainties. Although this communication contains information about what we and the reader may view as positive or significant developments concerning our products and services, such as test results and letters of intent, nothing in this communication is intended to infer or imply that development of commercially viable products or business relationships will occur or that we or our strategic partners will be able to generate revenues or profits from the sale of our products and services.

Shareholders and investors are strongly cautioned against placing undue reliance on information set forth in this communication in making any investment decisions concerning our securities.

In compliance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that statements contained in this announcement that are not historical facts may be forward-looking statements that are subject to a variety of risks and uncertainties. Accordingly, the Company wishes to caution readers of this announcement that its future actual results may differ materially from those that any forward-looking statements may imply. There is no assurance that the above-described events will be completed. There can be no assurance of the ability of the Company to achieve sales goals, obtain contracts or financing, consummate acquisitions or achieve profitability in the future. The Company undertakes no duty to update these forward-looking statements.

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