Seprotech Systems Inc. announced that the United States Patent and Trademark Office has awarded the Company a patent entitled Reciprocating Biological Contactor and Method of Use for the removal of Nitrogen from wastewater. The research, development and commercialization of this technology were conducted by Seprotech at its facilities in Ottawa, Ontario. This water treatment technology is designed to virtually eliminate nitrogen from municipal wastewater in a highly cost effective manner. Nitrogen in various chemical states is toxic to fish and other aquatic life forms and is responsible for fish kills in lakes and rivers. In addition, the presence of various forms of nitrogen in drinking water such as wells is associated with elevated risks of heart disease and blue baby syndrome in humans. Given the human health risks and severe environmental impact, the wastewater treatment standards for Nitrogen are coming under increased scrutiny resulting in higher discharge controls for Nitrates and Ammonia Nitrogen into lakes, rivers and groundwater.

Seprotech Systems Inc. announced that the Canadian Department of National Defence (DND) has increased the value of the repair and overhaul services contract for water purification systems by $1.5 million in the current fiscal year. The company began work on the DND contract in June of 2009 and the increase in the Standing Offer Agreement underscores both the urgent need for these services and the confidence DND places in the quality of Seprotech's work in executing this contract to meet tight military deadlines. The contract amendment is in addition to the Standing Offer announced on the 15th of January 2009 valued at up to $6 million over a five-year period. The standing offer process provides the canadian forces with immediate response and support to their equipment requirements. Seprotech has been awarded similar Standing Offers from DND in the past including the equipment in this Standing Offer.

Seprotech Systems Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended May 31, 2009. For the quarter, the company reported net loss of CAD 555,355 or CAD 0.01 per basic and diluted share on sales of CAD 1,213,824 compared to net loss of CAD 544,098 or CAD 0.00 per basic and diluted share on sales of CAD 1,301,467 for the same period last year. Operating loss was CAD 553,205 compared to CAD 542,435 for the same period of last year. Purchase of property, plant and equipment was CAD 147,065 compared to CAD 45,633 for the same period of last year. Net cash outflow was CAD 144,888 compared to CAD 158,036 for the same period of last year. For the nine months, the company reported net loss of CAD 637,252 or CAD 0.01 per basic and diluted share on sales of CAD 6,508,538 compared to net loss of CAD 857,299 or CAD 0.00 per basic and diluted share on sales of CAD 5,304,913 for the same period last year. Operating loss was CAD 693,514 compared to CAD 860,371 for the same period of last year. Purchase of property, plant and equipment was CAD 139,069 compared to CAD 65,534 for the same period of last year. Net cash outflow was CAD 246,286 compared to CAD 696,775 for the same period of last year.