Innovative Sewage Systems Inc. forms joint venture with Innovative Environment Services Inc.

Red Oak Trail Corp. has announced that Innovative Sewage Systems Inc. (ISSI) has signed a Joint Venture Agreement with Innovative Environment Services, Inc. (IES) of Colorado, USA.

STONEY CREEK, ONTARIO, Jan. 24, 2001--Red Oak Trail Corp. (CDNX: RTC) is pleased to announce that Innovative Sewage Systems Inc. (ISSI), a company that will be a wholly owned subsidiary upon the approval of the corporation's Qualifying Transaction, has signed a Joint Venture Agreement with Innovative Environment Services, Inc. (IES) of Colorado, USA.

The Joint Venture Agreement will allow IES to obtain the exclusive license to market, design, finance, build and operate the Small Bore Sewer(TM) sewage collection technology system (the ``SBSTM Technology'') throughout the United States. IES was founded by Stephen Lyon who has extensive experience in the private and public sectors, particularly in operation, maintenance and financing of community infrastructure systems.

The primary goals of IES are to market, design, build and finance innovative infrastructure technology, particularly in wastewater management and water treatment; and secondly, to privatize wastewater and water treatment systems for both the public and private sectors.

The Joint Venture Agreement has a term of 30 months during which IES will exclusively market the SBS(TM) Technology throughout the United States. ISSI will provide design services, technical assistance, system costing and construction management under the Joint Venture Agreement. Under the terms of the Joint Venture Agreement, IES will have the right to acquire the exclusive license for the SBS(TM) Technology for each state or defined territory in the United States.

The Joint Venture Agreement requires a payment to ISSI of $500,000 US per exclusive license. ISSI and IES estimate that up to 40 exclusive licenses for the SBS(TM) Technology will be granted under the Joint Venture Agreement. The Joint Venture Agreement also requires that ISSI receives a royalty payment of $200 per individual connection.

ISSI is a total wastewater management company that has developed a unique gravity-based Small Bore Sewer(TM) sewage collection technology system that is being marketed to small and medium sized communities across North America. ISSI is headquartered in Carp, Ontario and has been carrying on business since 1999.

The product, patented in the United States and patent pending in Canada, is installed as part of ISSI Total Community Wastewater Treatment Program. These programs include using SBS(TM) Technology and horizontal boring as part of the total wastewater collection challenge affecting smaller communities, rural and remote areas and other difficult site conditions, where environmental protection and low-cost treatment and collection are the prime considerations.

SBS(TM) Technology also results in a lowering of the sewer systems volume and the frequency of overall wastewater and sludge handling, as compared to conventional sewage collection and treatment systems. This allows for smaller treatment facilities and pumping stations, therefore reducing the overall cost of wastewater treatment to a community.

In addition, a sewage collection and treatment system based on SBS(TM) Technology can be installed with minimal community disruption and can be maintained by local personnel.

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