Sludge Watch ==> Another Biomass Energy Plant Planned for Southern Ontario

[Maureen Reilly]

PLASMA ENVIRONMENTAL TECHNOLOGIES INC.
1100 Burloak Drive, Suite 300
Burlington, Ontario L7L 6B2

NEWS RELEASE

FOR IMMEDIATE RELEASE 
TSX Venture Exchange
September 19th, 2006 
Symbol: PE
Toronto, Ontario 
Shares Outstanding: 36,270,014

SIEMENS AND ZWES ENTER STRATEGIC PARTNERSHIP
TORONTO, Canada - Siemens in Canada, through its Building Technologies group 
and Zero Waste Energy Systems Inc. (ZWES) have entered into a strategic 
partnership agreement to produce green energy from waste.  Alex Falconer, 
Chairman and CFO of Plasma Environmental Technologies Inc. (PE:TSXV), which 
recently announced its proposed acquisition of ZWES, says ZWES and Siemens 
will jointly develop small-scale distributed power plants in Southern 
Ontario to run on organic waste fuels.

Under this agreement, Siemens will; design, build, operate and maintain 
waste to energy infrastructure using ZWES engineered fuels; facilitate 
project financing and financial structuring; apply for and receive permits, 
licenses and other regulatory approvals as required on behalf of customer; 
provide performance-based systems operation and maintenance; provide 
technical support to ZWES in development, evaluation, selection of thermal 
conversion technologies and related emission control technologies; negotiate 
thermal sales agreements with end users; and negotiate electric 
interconnection agreements with local utilities or similar entities.

ZWES responsibilities under the agreement will be to develop standardized, 
engineered fuels from biomass feedstocks; provide testing of engineered fuel 
blends and by-product emissions to ensure consistency and repeatability; 
apply generally accepted standards for fuel engineering and production; 
ensure consistency of delivered engineered fuel products meets specified 
standards; secure sources of biomass feedstock to ensure availability of 
appropriate engineered fuels in sufficient quantities to meet contracted 
demand; develop, produce/provide emissions control technology suitable for 
use with engineered fuel blends; take responsibility for collection, 
storage, treatment, transportation, disposal and related costs (permits, 
licenses, fees, insurance and other as required) of waste products resulting 
from biomass waste to energy conversion processes; provide warranties for 
merchantability and fitness for purpose in respect of all thermal 
technologies supplied by ZWES; and use best efforts to use Siemens' 
technologies in the configuration and construction of applicable equipment 
and facilities.

The first plant will be constructed in southwestern Ontario. It is expected 
to supply electricity to the grid under Ontario's recently announced 
Standard Purchase Offer at 11 cents per kilowatt hour, and thermal power to 
local agricultural greenhouses at prices significantly below those of fossil 
fuels.

"This strategic partnership is a great opportunity for us to apply our 
engineering and technology expertise in the rapidly expanding area of 
renewable energy," says Doug Morton., Senior Vice President of Siemens.  "It 
is a natural extension of our successful portfolio of Energy & Environmental 
Solutions and demonstrates Siemens' corporate commitment to environmental 
sustainability."

Bruce Coxhead, President of ZWES, says "we are delighted to have formed this 
relationship with one of the world's largest industrial technology companies 
for the systematic development of facilities that will supply clean and 
inexpensive energy to Ontario industries."

ZWES is a GTA-based renewable energy company focused on the manufacture of 
both standardized engineered fuels from biomass waste and the equipment 
required to convert those fuels into electrical and thermal energy.

Plasma markets and develops plasma-based systems for the safe and 
cost-effective destruction of hazardous and non-hazardous wastes. The 
technology combined from the two companies enables ZWES to add plasma 
gasification of waste-to-energy and plasma destruction of hazardous 
materials to its extensive range of negative-cost energy producing 
feedstocks.

Siemens is one of the largest and most diversified companies in the world, 
providing innovations in areas such as health care, information & 
communications, energy & power, industry & automation, transportation and 
lighting. In Canada, Siemens is a multi-billion dollar company headquartered 
in Mississauga, Ontario, with more than 7,200 employees located in 76 
offices and 7 major manufacturing facilities.



For more information, please contact:
Alex Falconer
Plasma Environmental Technologies Inc.
Phone: (905) 332-9693
Fax: (905) 332-9792
Email: falconer at plasmaenvironmental.com
www.plasmaenvironmental.com
Ian Lipton
Zero Waste Energy Systems Inc.
Phone: (416) 460-4286
Fax: (416) 363-8434
Email: ianlipton at zwes.ca