ENVIRONMENTAL CLEAN TECHNOLOGIES LIMITED. — Capital/Financing Update 2008

Nov 4, 2008

Environmental Clean Technologies Limited

ABN 28 009 120 405

Commercial Terms agreed for Pacific Capital Convertible Notes

Wednesday, 5 November 2008 : Environmental Clean Technologies (ASX:ESI) is pleased to advise that as part of its equity financing arrangements, it has reached commercial agreement with Pacific Capital Value Fund and Pacific Capital Management Limited (Pacific Capital) on the terms of the documents required to implement the $10m convertible notes, first announced to the ASX on 8 August.

In accordance with a commitment by the Chairman, Mr Dave Woodall at the 10 September General Meeting where the Convertible Note was approved, the documents pertaining to the convertible notes have been the subject of independent legal review which has now been completed and the Board can now formally sign off on this unique funding facility that will give ECT the working capital necessary to meet its global sales objectives.

“Whilst the negotiations have been drawn out because of the unique commercial terms of the agreements, their finalisation allows the strategic direction of the Company to be initiated without future funding concerns,” Chief Executive Mr Kos Galtos said.

Achievement of agreed commercial terms over the past seven weeks has been a united and collaborative effort between ECT and Deacons along with Phillip Capital’s Glenn Fozard and financier, Pacific Capital to ensure this zero coupon convertible note opportunity presented to the shareholders was finalised.

“I would like to thank Deacons, Mr Fozard and Pacific Capital for their concerted efforts in negotiating the terms of this convertible note,” Mr Galtos said.

“With this important piece of work nearing completion, we are very confident of pressing forward with our aggressive local and international sales plans.”

If you have any queries, please contact the Company Secretary, Jan Macpherson on +61 (0)3 9684 0800 in the absence overseas of Chief Executive, Kos Galtos.

Level 13 � 222 Kingsway � South Melbourne � Victoria 3205 � Australia � +61(0)3 9684 0888

� www. ectltd.com.au