ENVIROSTAR ENERGY LIMITED 2002-07-05 ASX-SIGNAL-G HOMEX - Sydney...

ENVIROSTAR ENERGY LIMITED 2002-07-05 ASX-SIGNAL-G

HOMEX - Sydney

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The Directors wish to inform the market of the reasons behind the
transfer and sale of shares by its major shareholder, a company
associated with CEO Mr James Kwok as detailed in the Appendices 3Y
which was lodged with the Australian Stock Exchange today.

Mr Kwok's company has sold some of its shares in the company by way
of off-market transfer so that he may personally continue to support.

Energy Equipment Australia financially during the final stages of the
construction and commissioning of the Stapylton Green Power Plant. Mr
Kwok has informed the board that he is a reluctant seller as he
believes in the successful future of the Envirostar Energy. However,
he wishes to honour his commitment through Energy Equipment Australia
to continue to fund the completion of the Stapylton 5 MW Project.

Mr Kwok is the owner and Managing Director of the private company,
Energy Equipment Australia (EEA) which acquired the rights to the
Fluidised Bed technology used in the power generation process. In
addition, EEA is the EPC contractor at Stapylton. In view of the
financial losses incurred by EnviroStar through the collapse of
Financial Options Group, EEA, the support of Mr Kwok, has
trade-financed the construction and commissioning at Stapylton.
Furthermore, Mr Kwok has willingly and personally taken on the
financial responsibility of meeting certain payments relating to the
project which would otherwise have been met by EnviroStar
demonstrating, his total commitment to the project and the timely
completion of the 5MW plant.

Mr Kwok and EEA have been working with this technology for many
years, EnviroStar has a number of projects under various stages of
development, all of which have been initially funded by EEA.

The approval and planning process for each of these power generation
plants takes several years and Mr Kwok has consistently demonstrated
his persistence, determination and commitment to the technology and
the development of these projects, both technically and financially.

Following the commissioning of the Stapylton 5MW plant, the second
stage (20MW) is ready to proceed, subject to financing. Site works
have commenced for the 20MW Morwell plant. This has been achieved
with the direct support of EEA and Mr Kwok.

The Directors of EnviroStar wish to express their appreciation to Mr
Kwok for his continued support and commitment to its activities.

For further information, see our website
(http://www.envirostar.com.au) or contact Chris Coudounaris, via the
communication points shown below.

Telephone Number: (02) 9232 0788

Facsimile Number: (02) 9232 0799

Email address: [email protected]



C S Coudounaris
CHAIRMAN
EnviroStar Energy Limited.