Vapor Systems Technologies, Inc. and Gilbarco Veeder-Root Announce Exclusive License For ORVR Solution

Dayton, Ohio – USA – February 16, 2004 – Vapor Systems Technologies, Inc. (VST) announces an exclusive agreement to license its “Front End” Onboard Vapor Recovery (ORVR) solution to Gilbarco Veeder-Root. The technology is a simple low cost solution to problems associated with refueling ORVR equipped vehicles. Since 1998, new cars have built-in vapor recovery systems that are incompatible with existing Stage II vapor recovery systems. VST’s new ENVIRO-LOC™ system resolves this problem in a way that is invisible to normal station operation and customers.

The solution requires a Vapor Control Module (one per side of the dispenser) that operates in conjunction with VST’s ENVIRO-LOC hose and dripless nozzle system. Gilbarco Veeder-Root will supply the Vapor Control Module for both original equipment as well as field retrofits kits.

Dispenser retrofits will only require installation of the Vapor Control Device, with no changes to existing vapor pumps or dispenser piping. Once the complete system is installed customers will simply fuel both ORVR and non-ORVR equipped vehicles in the normal fashion.

VST intends to market this new technology in conjunction with its previously announced nozzle system that meets the three newest California Air Resource Board nozzle standards; spillage, liquid retention and dripless. ORVR compatibility and dripless nozzle technology offers multiple benefits as the most environmentally friendly nozzle with reduced evaporative emissions that actually pays for itself in fuel recovery.

ORVR compatibility is required now (2003) for new sites in California and Washington State, by April 2005 for existing sites in California and new sites in Texas, and by April 2007 for existing sites in Texas. All VST Enviro-Loc hanging hardware is expected to be certified in 2004 and will be available through VST’s distributor network.