Hydro Environmental Resources Inc. has concluded negotiations with Pure Power Technologies of Las Vegas for the design and construction of a hydrogen system suitable for internal combustion electrical generators. Pure Power Technologies has paid for the first system in full and requested the design and construction of a larger system suitable for industrial use. They estimate that they will not have any trouble placing 100 systems initially from existing inquiries once the commercial viability of the combined units is established. It is considered that this unit which will be for small business and household use will have a much larger market once the public accepts the technology. The commercial testing of the first unit will commence early in January 2002.