ESW Canada Inc., a wholly owned subsidiary of Environmental Solutions Worldwide, Inc., has entered into an agreement to sell its products into Mexico. The distribution agreement, with Nissho Iwai Canada Ltd. pertains to the sales and distribution of ESW’s Enviro-Cat gas catalytic converters, Clean Cat diesel catalytic converters as well as the RC-2 converter cleaning consoles. Nissho Iwai Canada Ltd. is in the process of obtaining Mexican government emissions certifications for both the ESW Enviro-Cat and Clean Cat automotive converter product lines. The company intends to initiate diesel and gas catalytic converter sales throughout Mexico within their existing distribution infrastructure. Subject to Nissho Iwai Canada Ltd. obtaining Mexican government emissions certification, Nissho Iwai also intends to develop additional lines of distribution channels to enhance the sale of the product lines. The agreement provides Nissho Iwai Canada Ltd. with the exclusive right to distribute the ESW retrofit and aftermarket automotive gas and diesel catalytic converter lines and cleaning consoles in the country of Mexico for the next three years, pending certain sales quotas are met. The agreement also carries with it an option for an additional two years. Commencing October 31, 2001, the exclusive rights are subject to Nissho Iwai Canada Ltd. generating a minimum sales quota totaling 100,000 units the first year, 200,000 units in the second year and 300,000 units in the third year. Provided Nissho Iwai meets the minimum quota of 600,000 units over the three-year period, ESW will realize approximately $39 million USD in product sales.