Mr. Lynn Mueller reports

IWS ANNOUNCES FRANKFURT LISTING AND ISSUANCE OF STOCK OPTIONS

International Wastewater Systems Inc.'s shares have begun trading on the Frankfurt Stock Exchange under the symbol IWI.

The company's shares are also approved for trading on the Xetra trading platform. Xetra is one of the leading trading platforms for securities in Europe, and handles more than 90 per cent of the entire share trading at German exchanges. The world's largest exchange network connects 4,000 traders from 16 European countries plus Hong Kong and the United Arab Emirates.

The Frankfurt listing will provide European institutional and retail investors with easy and efficient access to IWS shares, with the added benefit of increased market liquidity and exposure for IWS in European capital markets.

The company further announces that it has approved the issuance of 5.7 million incentive stock options in accordance with the company's stock option plan to certain directors, officers, employees and consultants of the company. Each option, vesting 20 per cent each six months of service, entitles the holder to purchase one common share of the company at a price of 50 cents per share, exercisable for five years from the date of issuance. The options and any common shares issued upon exercise will be subject to a four-month resale restriction from the date of grant.

We seek Safe Harbor.