Used Railroad Tie Project Complete

March 14, 2003

NOVUS Wood Group, LP (Houston, Texas) NOVUS Wood Group, LP, a pioneer in the wood recycling industry, has completed a large railroad tie recycling project in Central Texas. Used railroad ties are becoming a nuisance and an environmental challenge for the railroads as they are accumulated in large quantities along rights-of-way across the country. Landfill disposal is not desirable due to the significant cost associated with disposal and beneficial reuse markets (eg. landscaping, fencing) divert only a small fraction of the annual volume of used ties.

NOVUS is closing the loop for used railroad ties by grinding the ties into high btu boiler fuel for the purpose of creating renewable energy. Several large wood fired boiler customers are utilizing the railroad tie fuel to supplement existing solid fuel streams which offset the use of fossil fuels. Natural gas prices have spiked recently making less expensive biomass an attractive alternative fuel. Biomass fuel is "Co2 neutral" meaning is does not contribute to greenhouse gas emissions. Furthermore, when co-fired with high sulfur coal, studies have shown that biomass disproportionately reduces sulfur dioxide emissions. Our nation's dependence on foreign oil has created a significant national security issue and NOVUS' efforts help reduce the dependence by generating clean renewable energy from resources within our borders. This particular project will be completed by the end of April 2003 and is expected to produce approximately 157,000 MMBTUs of clean, renewable energy.

For more information, contact Steve Ghormley at 281-922-1000.

sghormley@novussystems.com

www.novuswoodgroup.com

NOVUS Wood Group, LP

5900 Haynesworth Lane Houston, Texas 77034