Service Systems grants exclusive license to manufacture UV systems for S. Korea

Service Systems International has granted a manufacturing license for its Ultra Guard® UV wastewater disinfection systems to Vitzrosys Co., Ltd.

VANCOUVER, BC, CANADA, November 1, 2001 — Service Systems International, Ltd. has granted an exclusive manufacturing license for its Ultra Guard® UV (ultraviolet) wastewater disinfection systems to Vitzrosys Co., Ltd, one of Korea's high technology suppliers to that country's utilities sector.

This agreement provides Vitzrosys with an exclusive license to manufacture Ultra Guard Single Lamp Reactor (SLR) systems for sale and installation in South Korea over a ten-year period. Service Systems will contribute a key component produced by its subsidiary, UV Systems Technology, Inc. in North America. Vitzrosys also has the exclusive right to market the systems within South Korea and the non-exclusive right to market the systems in surrounding territories not serviced by a sales agent of Service Systems.

Service Systems received a cash payment upon ratifying the agreement and earns a royalty paid on every unit produced by Vitzrosys for the life of the contract. The amount of the one-time payment and the royalty fee remain undisclosed as part of Service Systems' strategic marketing practice.

In aligning forces, Service Systems and Vitzrosys are positioned to capture significant market share in one of the fastest growing geographical markets for UV disinfection. The Korean government has announced its intention and committed funds to aggressively introduce disinfection technology into state-owned wastewater treatment facilities immediately. Vitzrosys estimates the government's expenditures for disinfection equipment will grow to USD $40 million per year by 2004 and estimates its annual share of that market to reach USD $10 million (2004). Vitzrosys already holds over 40 percent market share of all the Distributed Control Systems (DCS) & Supervisory Control & Data Acquisition (SCADA) Systems sold to the same client base.

Korean governmental guidelines make purchasing foreign manufactured systems prohibitive. Under this new arrangement, Service Systems is effectively in business in Korea immediately, without capital outlay or added duties (typically 15%) and with the benefits of low cost, quality manufacturing in Asia.

Kim, Vice-President of Vitzrosys, says he is enthusiastic about the milestone agreement.

"Vitzro is the Korean word for light. Our company chose this name because our product offering of technologies lights the way to a better life for our clients. We pride ourselves on providing electrical power equipment to a variety of sectors from utilities through municipalities to hospitals, airports and other public areas. It is important that our chosen products reflect our commitment to safety, reliability and efficiency. We feel that disinfection with UV light is safer for treatment plant operators and the environment," Kim says. He adds, "We studied our market's disinfection needs and competing technology alternatives for the past three years. We are confident that Ultra Guard®'s lower operating costs, ease of operation and maintenance, smaller footprint and effectiveness through a wide range of wastewater characteristics make it the obvious choice of maximum value for our clients."

The Vitzrosys Group of Companies manufactures and sells electrical equipment to top Korean corporations including Korea Water Resource Corporation, Korean National Railway, Korea Gas, and Korea Electric Power, amongst others. The company has earned a number of distinctions over its existence and was recently recognized as one of the top 50 companies in Korea for quality in manufacturing, after sales support and its mix of advanced technologies. Vitzrosys has both ISO 9001 and "Q" quality manufacturing certification.

Peter Colak, Service Systems VP of Sales and Marketing, explains "We are especially pleased when companies, founded on a rich base of experience that includes previous sales of competing UV equipment, choose the Ultra Guard® system. Vitzrosys's power equipment is distributed throughout large-scale municipal applications and most public buildings (hospitals, airports, etc.) in Korea. Service Systems' exclusive association with Vitzrosys Group, which was initiated by this technology supplier, is further evidence of our ability to compete on a global scale."

Expressions of interest and requests for additional information should be directed to Service Systems at www.servicesystems.com or www.ultraGuard®.com.

About Service Systems

Service Systems International, Ltd. is a UV water and wastewater treatment company. Its patented Ultra Guard® disinfection system is seen as a significant advancement in the industry and has met one of the world's strictest standards governing wastewater reuse (California, Title 22). Ultra Guard technology provides significant savings in installation, operation and maintenance costs over its competitors. Ultra Guard is actively marketed through an exclusive agent agreement with US Filter, one of the world's providers of wastewater treatment technology. Service Systems invites you to visit its web site at http://www.servicesystems.com.

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