EnviromondialCease trading order against United Environmental Energy Corporation

Securities Decisions and Freeze and cease trade orders

Montréal – At the request of the Autorité des marchés financiers (AMF), the Bureau de décision et de révision en valeurs mobilières (BDRVM) issued a cease trading order, on May 16, 2006, against United Environmental Energy Corporation, Enviromondial inc., Enviromondial International Vanuatu Inc., Nathaly Demers, Raymond Bréard, Claude Charbonneau, Patricia Ann Chandler, Stevens Demers, Ronald Demers and any senior executive, director, employee, agent or representative thereof in respect of the securities of United Environmental Energy Corporation.

With this decision, the BDRVM is also prohibiting, in a broad sense, any activity in respect of a transaction in the securities of United Environmental Energy Corporation. This in particular means that Québec shareholders of United Environmental Energy Corporation may not sell their shares.

The decision is based primarily on the fact that United Environmental Energy Corporation (UEEC) made an illegal distribution in Québec, that is, without a prospectus for which a receipt was issued by the AMF.

As demonstrated by the AMF, the U.S. patent that was Enviromondial’s main asset was apparently transferred from Enviromondial to Enviromondial International Vanuatu Inc. (EIV) without approval of Enviromondial’s board of directors. At least two Québec investors received a letter carrying the letterhead of EIV and signed by company president Stevens Demers. The letter states that EIV has acquired a U.S. patent from Enviromondial and that EIV has granted a marketing licence in respect of the patent to the U.S. company UEEC. As well, the letter states that, further to the agreement, EIV has taken measures whereby the shareholders of Enviromondial will each receive a number of shares in UEEC equivalent to the number of shares they hold in Enviromondial.

Furthermore, a search was conducted on May 16, 2006 at the premises of Enviromondial, in connection with the distribution of UEEC securities and the activities carried out by Enviromondial and EIV.

Stevens Demers and Enviromondial have been the subject of a number of court decisions.

To read the decision issued by the BDRVM, see the appendix to the Press Release posted on the AMF website.

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.

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