Hipox, developed by Pleasant Hill-based Applied Process Technology, Inc.

PLEASANT HILL, Calif., June 9, 2004 -- Applied, has been selected by the South Tahoe Public Utility District to treat drinking water contaminated by the gasoline additive methyl tertiary butyl ether (MTBE) and its breakdown product tertiary butyl alcohol (TBA).

This is the second time the District has selected HiPOx to treat MTBE in its drinking water. In 2002, the HiPOx technology enabled the restoration of the District¹s Arrowhead #3 well, the first drinking water supply well brought back into operation after the District shut down 13 MTBE-impacted wells in 1998. Now HiPOx will be implemented at the District¹s Bakersfield well, the second of the 13 wells to be restored.

Dennis Cocking, the District's Information Officer stated, "From the moment we discovered MTBE in our drinking water supply, the District has adopted a zero-tolerance stance. We refuse to deliver water to our community unless it is absolutely MTBE-free. And since HiPOx completely destroys MTBE, it is the best choice for us."

Rick Hydrick, the District¹s Manager of Water Operations stated, "Given the success at the Arrowhead #3 well, we are confident the HiPOx technology will be similarly successful with the Bakersfield well. The restoration of this well will be of tremendous value to the District."

"Applied Process Technology is very pleased to be able to help the South Tahoe Public Utility District restore its drinking water supply," says Terry Applebury, Applied's President and Chief Executive Officer. "I believe this second order confirms the District's satisfaction with the HiPOx technology and reinforces the fact that HiPOx can meet our nation¹s most demanding drinking water treatment criteria."

The HiPOx advanced oxidation technology combines hydrogen peroxide and ozone to form hydroxyl radicals, an aggressive oxidant that reacts chemically with volatile organic compounds (VOCs) including MTBE, TBA and many other organic compounds, converting them into benign carbon dioxide and water. The carbon dioxide is vented off while the cleansed water is returned to the subsurface, discharged to a surface water body, or as in the District¹s case, put to productive use serving as a source of drinking water. Unlike air stripping and carbon systems, HiPOx actually destroys contaminants on-site rather than transferring them to another medium for further treatment and disposal.

Cocking also explained, "The Bakersfield well is located in a residential neighborhood. We were looking for a treatment system that would not only destroy MTBE and TBA but would also be acceptable to the people in the surrounding community. HiPOx is not noisy, does not require waste removal or other truck traffic through the neighborhood, does not emit MTBE or TBA to the air, and has a low profile. So we believe the community will be very happy with this system."

The HiPOx system will make up to 1,500 gallons-per-minute (gpm) of groundwater available for public consumption and is scheduled to be commissioned in June of 2004.

Applied Process Technology, Inc. (www.aptwater.com) provides technically superior pump-and-treat and in-situ water treatment solutions and services to the drinking water, environmental remediation and industrial process water markets. Applied specializes in treatment technologies that do not generate by-products or waste streams. I

ts first two product lines, HiPOx and PulseOx, are based on advanced oxidation and chemical oxidation processes that destroy a wide variety of contaminants including MTBE, TBA, and 1,4-dioxane. In addition, Applied and its alliance partners offer other technologies that treat a variety of contaminants including perchlorate. New advanced products are under development.