U.S. District Court Issues Temporary Restraining Order Against Sanitec Industries to Prevent Disposal of Assets

Micro-Waste^® holds a judgment of $665,050 against Sanitec Industries, Inc., based upon previous litigation in which Micro-Waste Corporation^® was awarded damages. On June 29, 2007, the U.S. District Court, Southern District of Texas, issued a Temporary Restraining Order (TRO) enjoining Sanitec Industries, Inc.,from disposing or transferring assets related to its world-wide patents and its microwave disinfection units (MDUs) located in California and North Carolina. This included the following:

1. MDUs used/stored at Sanitec USA in Sun Valley, CA.
2. MDUs at Sanitec Industries, Inc., wholly-owned subsidiary, North States Specialty Waste, Inc., in Red Bluff, CA.
3. MDUs at Sanitec Industries, Inc., wholly-owned subsidiary, Sanitec SafeWaste, LLC, in Mount Holly, NC.

The TRO also enjoined Sanitec Industries, Inc., from transferring or disposing of its accounts receivable related to its contracts with the following:

1. Good Samaritan Hospital of Los Angeles
2. Novant Health, 2085 Frontis Plaza Blvd Winston-Salem, North Carolina 27103 which includes the following facilities:
   1. Presbyterian Healthcare, 200 Hawthorne Lane, Charlotte, North Carolina 28204
   2. Forsyth Medical Center, 3333 Silas Creek Parkway, Winston-Salem, North Carolina 27103
   3. Thomasville Medical Center, 207 Old Lexington Road, Thomasville, North Carolina 27360
   4. Brunswick Community Hospital, 1 Medical Center Drive, Supply, North Carolina 28462
3. US Dept. of Veterans Affairs Palo Alto Health Care System (VAPAHCS) consisting of:
   1. three inpatient facilities located at Palo Alto, Menlo Park, and Livermore
   2. six outpatient clinics in San Jose, Capitola, Monterey, Stockton, Modesto, and Sonora

The TRO additionally enjoined Sanitec Industries, Inc., from transferring or disposing of its accounts receivable related to the following wholly-owned subsidiaries:

1. North State Specialty Waste
2. Sanitec SafeWaste, LLC

Sanitec Industries, Inc., was required to segregate all collections of its accounts receivable.

Finally, the TRO enjoined Sanitec Industries, Inc., from transferring or disposing of its corporate stock representing shares of Sanitec Industries, Inc., North State Specialty Waste, and Sanitec SafeWaste, LLC.