Sanitec Industries Sells Its Medical Waste Processing Businesses and Files Proposed Bankruptcy Reorganization Plan to Allow Extended Payment of Judgment to Micro-Waste^®

Micro-Waste^® holds a $665,050, plus interest and the taxable court costs, judgment against Sanitec Industries. Sanitec Industries claims that the Micro-Waste^® judgment and Micro-Waste's attempts to obtain judgment payment led to its Bankruptcy filing in July 2007.

On August 29, 2008, according to filings with the Bankruptcy Court, Sanitec Industries sold its entire medical waste processing businesses and transferred substantially all of the assets of its subsidiaries to Stericycle, Inc. The subsidiaries included Sanitec USA, Inc., Sanitec Safewaste, Inc., and North States Specialty Wastes, Inc. This left Sanitec Industries with essentially only its U.S. Patent, real estate in Indianapolis, Indiana (where Sanitec Industries claims to plan to build another medical waste facility), and some parts and equipment.

On September 26, 2008, Sanitec Industries filed its 1st Amended Chapter 11 Reorganization Plan and Disclosure Statement. This plan proposes to pay its creditors, including Micro-Waste^®, over a period of up to 7 years. This plan must be voted on by the Creditors prior to confirmation.