Business Development and Recent Events: ---------------------------------------

Whitewing Environmental Corp. ("Whitewing"), a Delaware Corporation, through its predecessor, Total Filter Recycling, Inc., a New Jersey Corporation, began operations in 1992 in the business of collecting and recycling used automotive oil filters.

As of January 1, 2003, the Company had a 50% investment in ARS, which was accounted for under the equity method. ARS manufactures and distributes industrial absorbents.

On February 26, 2003 the Company signed a Stock Purchase Agreement with two shareholders of ARS (Geoffrey Perry and Carol Dancer) to...