DESALINIZATION LICENSE AGREEMENT

This  Agreement  is  made  and  is  effective  this  30th  day  of  May,  2003.


BETWEEN : ETSURO SAKAGAMI, whose address is 6-11-14 Mirami Naruse, Machida City,
          Tokyo,  Japan
     (  hereinafter  called  "  Licensor  "  ),        of  the  First  Part,

AND:      AMANASU  ENVIRONMENT  CORPORATION,  whose  address  is 701 5th Avenue,
          36th Floor,  Seattle,  Washington  98109,  U.S.A.
     (  hereinafter  called  "Licensee"  ),         of  the  Second  Part,

WHEREAS "Licensor" owns the patented Ring-tube Seawater Desalinization Equipment
     hereinafter  referred  to as "The Product" (see Definition 1.00), and would
     like  to  license  the  worldwide  production  and marketing rights of such
     technology  to  the  Licensee.

WHEREAS  "Licensee",  a publicly listed Company in the United States, desires to
     establish  an  exclusive  licensing  agreement  with  the  Licensor for the
     production  and  marketing  of  the  Product  throughout  the  world.


AND  WHEREAS  the Licensor and Licensee have subject to the terms and conditions
set  forth  in  this  Agreement,  agreed  to  the  licensing  of the Product and
Technology  for  the production and marketing of the Product from the Technology
on  an  exclusive  basis  throughout  the  world.

NOW  THEREFORE  this  Agreement  witnesses that in consideration of the premises
hereto  and  covenants  and agreements hereinafter contained, the parties hereto
covenant  and  agree  to  each  other  as  follows:

SECTION    1  -  DEFINITIONS

1.00 Product,  Product(s) and Technology relates to the Ring-tube Desalinization
     Equipment  which  is  described,  including  the  Patents  detailed  out in
     Schedule  A  and  B,  which  is  an  integral  part  of  this  agreement.

     The  Technology  described  above  and " Patent / Patent Rights " means the
     patent  rights to any subject matter claimed in or covered in Japan, United
     States  and  Canadian  patent  applications  that have been assigned to the
     Licensor  or,  any  containing applications thereof, any patents issuing on
     said  applications  or  continuing  applications  including  re-issue,
     improvement  and  any  corresponding foreign patents or patent applications
     and other related technology know how, intellectual property, trade secrets
     whether  patentable  or not now or in the future developed by the Licensor.

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1.01 "Licensed  Products " means any manner of chemical or other derivative that
     is  covered  by  the  Technology  and/or Patent/Patent Rights, or whose use
     constitute  but  for  this  license  granted  to  Licensee pursuant to this
     Agreement,  an infringement of any claim within the Patent/Patent Rights or
     unauthorized  use  of  the  Technology,  trade  secrets  or know how of the
     Licensor.

1.02 "  Licensed  Method  "  means  any method that is covered by the Technology
     and/or  Patent/Patent  Rights,  Patent application or whose use or practice
     would  constitute but for this license granted to Licensee pursuant to this
     Agreement,  an infringement of the Patent/Patent Rights or unauthorized use
     of  the Technology, intellectual property, trade secrets or know how of the
     Licensor.

1.03 "  Sub-license  "  means the right of the Licensee to enter into agreements
     with  third  parties  and  to  assign all or part of this Agreement without
     further  permission  from  the  Licensor.

1.04 "  Gross  Receipts  "  means  the  total  of  the  gross  invoice prices of
     Licensee's  Products  without  any deductions and allowances for discounts,
     tariff,  duties, excise taxes, transportation charges, credits to customers
     for rejected Products, etc. In relation to Licensed Method means any amount
     received  or  receivable  by  Licensee  for  the sale and or use from Third
     Parties  of  the  right  to  practice  "  Licensed  Method  ".

1.05 " Third Parties " means any person, corporation or entity recognized by law
     that  is  dealing  at  arms  length.

SECTION    2  -  GRANT  OF  LICENSE

2.00 Subject  to  the  conditions  of  this  Agreement,  the  Licensor grants to
     Licensee  the exclusive right to use the Technology to make, have made, use
     and  sell  the  Licensed  Product(s)  and  practice  Licensed  Method on an
     exclusive  basis  world  wide.

2.01 It  is  understood that Licensee shall have the right to issue sub-licenses
     to Third Parties on such terms and conditions as Licensee in its discretion
     may  bona-fide  determine  without  further  permission  from the Licensor.

2.02 To the extent applicable, such sub-licenses shall include all the rights of
     and  obligations  due to the Licensor that are contained in this Agreement.

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SECTION   3  -  ROYALTY

3.00 Licensee  is  to  pay  the Licensor a royalty equal to two ( 2 ) percent of
     Licensee's Gross Receipts from Licensed Products or Licensed method payable
     to the Licensor, within sixty (90) days upon receipt of royalty by Licensee
     or  from  Sub-licensees.

3.01 All  monies  due to the Licensor shall be payable in U.S. funds. The earned
     royalties  will  be  determined  in  the foreign currency of the country in
     which  such are made and converted into equivalent U.S. funds, and remitted
     likewise.

3.02 If  at  any time legal restrictions prevent the prompt remittance of any or
     all  of  the  royalties  by  Licensee  with respect to any country of sale,
     Licensee shall have the right and option to make such payment by depositing
     the amount thereof in local currency at the Licensor's account in a bank or
     other  depository  in  such  country.


SECTION    4  -  REPRESENTATIONS,  WARRANTIES  AND  COVENANTS  OF
                            LICENSOR

4.00 The  Licensor hereby represent and warrant to, and covenants with Licensee,
     now  and  during  the  term  of  this  Agreement  that  ;

     (a)  The  Licensor  have  the sole and exclusive right to grant the rights,
          licenses and authorities granted to Licensee herein and it is the sole
          and  exclusive  owner  of  all  Patent/Patent  Rights.
     (b)  The  licenses  herein  granted are unencumbered by any lien, mortgage,
          prior assignment, charge, other encumbrance, commitment or interest of
          any  other  person.
     (c)  The  Licensor will not directly or indirectly enter into, negotiate or
          solicit any agreement or arrangement for the creation or imposition of
          any encumbrance or restriction of any nature which may be inconsistent
          with  the rights, licenses and authorities granted to Licensee herein.
     (d)  To  the  best  of  Licensor's knowledge, the claims for the Technology
          and/or Patent/Patent Rights, do not infringe any Japanese, Canadian or
          U.S.  patents  or  patent  applications  of  any  other  party.
     (e)  The  Licensor have the power and capacity to enter into this Agreement
          and  carry  out  its  terms  to  the  full  extent.
     (f)  The  Licensor  will  not  disclose  to any person other than the legal
          advisors of the parties hereto, any information pertaining to Licensee
          or this Agreement that has not been generally disclosed to the public.

4.01 The  Licensor will to their best ability assist the Licensee in all matters
     pertaining  to the Technologies and in all technical matters concerning the
     production  and  repair  of the final Product from the Technology mentioned
     above.  Such technical assistance will be given by the Licensor at no extra
     cost  other  than what is stated in this Agreement, for a minimum period of
     ten  (20)  years  from  date  of  Agreement.

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4.02 In  the  event that the Licensor makes improvements and/or new enhancements
     to  the  above  described Technology, the Licensor will license the same to
     Licensee at no extra cost, and such additional license will expire the same
     period  as  this  Agreement.

4.03 During  the  term of this license agreement, any new inventions of any kind
     emanating  from  the  licensor will be licensed exclusively to the licensee
     under  the  same  terms  and conditions of this agreement. All patent costs
     pertaining  to  such  new  inventions  will  be  the  responsibility of the
     licensee.

SECTION    5  -  LICENSEE'S   OBLIGATIONS

5.00 Licensee  shall  keep  books  and records showing all Licensed Products and
     License  Method  used  and/or  sold under the terms of this Agreement. Such
     records  shall  be  open for inspection by representatives or agents of the
     Licensor  at  reasonable  times.

5.01 Licensee  shall  at  all  times diligently proceed with the manufacture and
     sale  of  Licensed  Products  and  Licensed  Method and shall earnestly and
     diligently market same and in quantities sufficient to meet market demands.
     Licensee  shall  be  entitled  to  exercise prudent and reasonable business
     judgment  in  meeting  its  due  diligent  obligations.

5.02 Licensee  covenants  and  agrees  that during the life of this Agreement it
     shall  :

     (a)  In  the  manufacturing  of  the Licensed Products, contract/ employ or
          cause  to  be  employed,  those  persons  or  contractors who have the
          necessary  skills,  care  and  experience  to manufacture the Licensed
          Products,  to  a reliability and safety standards that are established
          by  the  Licensor.

     (b)  Conduct  product testing both prior to and after commercial production
          to  ensure  the  reliability  and  safety  of the Licensed Product and
          Licensed  Method,  and shall furnish the Licensor with results of such
          testing.

     (c)  In  the  manufacturing of the Licensed Product it shall use only those
          parts  and  materials that will meet the minimum specifications of the
          Licensor.

     (d)  At  all reasonable times and on reasonable notice, permit the Licensor
          and/or  authorized  representatives  of  the  Licensor  to inspect any
          facilities  in  which  any  parts  or  materials  are  manufactured.

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     (e)  Properly  report  to  the Licensor any occurrence involving the use of
          the  Licensed  Product  or  Licensed  Method  that  in  the reasonable
          judgment of Licensee may give rise to a claim against the License, the
          Licensor  or  any  user of the Licensed Product or Licensed Method. It
          shall  continue to keep the Licensor abreast of any subsequent report,
          investigation,  inquest  or  legal  proceeding  arising  therefrom.

     (f)  Comply  with the patent, and all applicable laws, regulations, decrees
          or  requirements  of  those countries in which the Licensed Product is
          sold  or  Licensed  method  is  practiced.

5.03 (a)  Licensee  to  allot  immediately and issue by June 30, 2003, 1,000,000
     fully  paid  and  non  assessable  common  shares  of Licensee to Licensor.

     (b)  Licensee  to  allot  immediately  and  issued by June 30, 2003, 50,000
          fully  paid  common  shares of Licensee to F.C. Giken Kabushikigaisha,
          whose  address  is  SCC  Building,  5-4-10  Kibu Koto-ku, Tokyo, Japan


SECTION   6   -  LIFE  OF  AGREEMENT

6.00 Unless  otherwise  terminated  by  operation of law or acts of the parts in
     accordance  with  the  terms  of this Agreement, this Agreement shall be in
     force  from  the  effective  date  recited on page one, and shall remain in
     effect  for  thirty  (  30  )  years.

SECTION    7  -  TERMINATION  BY  LICENSOR

7.00 If  Licensee should violate or fail to perform any term or covenant of this
     Agreement,  then  the  Licensor  may  give written notice of such default (
     Notice  of  Default  )  to  Licensee. If Licensee shall fail to repair such
     default  within  ninety  days  of  the  effective  date of such notice, the
     Licensor  shall  have the right to terminate this Agreement and the License
     herein,  by  a second written Notice ( Notice of Termination ) to Licensee.
     If  Notice  of  Termination  is  sent  to  Licensee,  this  Agreement shall
     automatically  terminate  on  the  effective  date  of  such  Notice.  Such
     termination  should  not  relieve  Licensee  of  its  obligation to pay any
     royalty  at  the  time of such termination and shall not impair any accrued
     right  of  the  Licensor.


SECTION   8  -  TERMINATION  BY  LICENSEE

8.00 Licensee  shall have the right to terminate this Agreement by giving notice
     in  writing  to  the Licensor. Such notice of termination of this Agreement
     shall  be  effective  ninety  (  90  ) days from the effective date of such
     notice.

8.01 Any termination pursuant to the above paragraph, shall not relieve Licensee
     of  any obligation or liability accrued hereunder prior to such termination
     or  rescind  anything done by Licensee or any payments made to the Licensor
     hereunder  prior  to  the  time such termination became effective, and such
     termination  shall  effect in any manner any rights of the Licensor arising
     under  this  Agreement  prior  to  such  termination.  Furthermore,  upon
     termination  of  Licensee,  all  rights  of  Licensee  hereunder  shall  be
     surrendered  effective  upon  such date that termination becomes effective.

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SECTION   9  -  PATENT  PROSECUTION  AND  MAINTENANCE

9.00 The  following sub-sections will only be applicable, if and when, Patent(s)
     are  applied  for,  at  the  sole  discretion  of  the  Licensor.

9.01 The  Licensor shall diligently prosecute and maintain the United States and
     Canadian  Patents  comprising the Licensor's Patent Rights using counsel of
     its choice. The Licensor shall provide Licensee with copies of all relevant
     documentation  so  that  Licensee  may  be  informed  and  apprised  of the
     continuing  prosecution.  Licensee  agrees  to  keep  this  documentation
     confidential  and  shall  at  the  request  of  Licensee,  apply for patent
     protection  in  any country that Licensee markets the Licensed Products and
     Licensed  Method.

9.02 The  Licensor  shall  use  all  reasonable  efforts  to  amend  any  Patent
     application  to  include claims reasonably requested by licensee to protect
     the  products  contemplated  to  be  sold  under  this  Agreement.

9.03 The Licensor shall co-operate with Licensee in applying for an extension of
     the term of any Patent included with Licensor's Patent Rights. The Licensor
     agrees  to  execute  such  documents  and  take  such  additional action as
     Licensee  may  reasonably  request  in  connection  therewith.

9.04 The  cost  of  preparing,  filing,  prosecuting  and maintaining all Patent
     applications  contemplated  by  this  agreement,  shall  be  borne  by  the
     Licensee.


SECTION    10  -  PATENT  /  PATENT  RIGHTS  INFRINGEMENT

10.00  In the event that Licensee shall learn of substantial infringement of any
     Patent  /Patent Rights licensed under this Agreement, Licensee shall notify
     the  Licensor  in  writing  and  shall provide the Licensor with reasonable
     evidence of such infringement. Both parties shall use their best efforts in
     co-operation  with  each  other  to  terminate  such  infringement  without
     litigation.

10.01  Licensee  may  request  that  the  Licensor take legal action against the
     infringement  of the Licensor's Patent/Patent Rights. Such request shall be
     made  in writing and shall include reasonable evidence of such infringement
     and  damages  to  Licensee.  If the infringing activity has not been abated
     within  thirty  (30) days following the effective date of such request, the
     Licensor  shall  have  the  right  to  :

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<PAGE>

-    commence  legal  suit  on  their  own  account;  or
-    refuse  to  participate in such suit, and the Licensor shall give notice of
     its  election in writing to Licensee by the end of the ninetieth (90th) day
     after  receiving  notice  of  such  request  from  Licensee.  Licensee  may
     thereafter  bring  suit for patent infringement if and only if the Licensor
     elects  not  to commence legal suit ( other than as nominal party plaintiff
     ),  and  if  the  infringement  occurred during the period. However, in the
     event  Licensee  elects  to  bring  legal  suit  in  accordance  with  this
     paragraph,  the  Licensor  may  thereafter  join such legal suit at its own
     expense.

10.02  Such legal action is decided upon shall be at the expense of the party on
     account  of  whom  suit  is  brought, and all recoveries recovered thereby,
     shall  belong  to  such party, provided, however, that legal action brought
     jointly  by  Licensee  and  fully  participated in by both, shall be at the
     joint expense of the parties, and all recoveries shall be shared jointly by
     them  in  proportion  to  the  share  of  expense  paid  by  each  party.

10.03  Each  party agrees to co-operate with the other in litigation proceedings
     instituted  hereunder  but  at  the expense of the party on account of whom
     suit  is brought. Such litigation shall be controlled by the party bringing
     the  suit,  except that the Licensor may be represented by counsel of their
     choice  pursuant  to  the  Licensor's  determination in any suit brought by
     Licensee.


SECTION    11  -  COMMON  COVENANTS  OF  LICENSOR  AND  LICENSEE

11.00     Governing  Law  &  Submission  to  Jurisdiction

This Agreement shall be interpreted and construed in accordance with the laws of
Nevada  of  the United States, and the parties hereto submit to the jurisdiction
of  the Courts of Nevada, but the scope of any patent or patent applicable shall
be  governed  by  the  applicable  laws  of the country of such patent or patent
application.

11.01     Conformity  with  Local  Laws

Any  provision  or  provisions of this Agreement which in any way contravene the
law  of any State or Country in which this Agreement is effective, shall in such
State  or  Country,  to  the  extent  of  such  contravention  of law, be deemed
severable  and  shall  not affect any provision or provisions of this Agreement.
The  parties shall each at its own expense in its own countries, take such steps
as  may  be  required  to  satisfy  the  laws and requirements of the respective
countries  with  respect  to  declaring,  recording, or otherwise rendering this
Agreement  valid.

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11.02     Arbitration

Both  parties  shall act in good faith and utilize their best efforts to resolve
any  dispute,  controversy  or  difference  arising  in  connection  with  this
Agreement,  to  their  mutual  satisfaction.
All  disputes,  controversies or differences arising in connection which are not
resolved  mutually,  shall  be finally settled by arbitration under the Rules of
Conciliation  and  Arbitration  of  the  International Chamber of Commerce, by a
panel  of three arbitrators each of whom shall speak fluent English and shall be
appointed  in  accordance with the said Rules. Any award made by the arbitrators
shall  be  made  as  promptly  as possible and shall state the reasons for their
decisions  taking  into  account  all  aspects  of  the  dispute, controversy or
difference.
Any  such  arbitration  shall  be  held in Nevada. The laws to be applied by the
arbitrators  shall  be  the  laws  of  the  United  States.  The decision of the
arbitrators  shall be final and binding on both parties. Judgment upon any award
rendered  by  the arbitrators may be entered in any court having jurisdiction or
application  may  be  made to such court for a judicial acceptance of the award,
and  an  order of enforcement as the case may be. Such an arbitration shall be a
condition  precedent to the institution of any such suit, claim, action or other
legal  proceeding  arising  in  connection  with  this  Agreement.

11.03     Notice

Any  notice,  consent,  request,  demand  or  other  communication  required  or
permitted to be given or delivered under this Agreement, shall be in writing and
delivered  by  registered mail, facsimile or telegram, addressed to the party at
its  address  first  set  out  above.  Each  notice shall be deemed to have been
received  upon  delivery  to  the  addressee, provided that such notice shall be
deemed  to  have  been  received  upon  expiration  of  12 days from the date of
mailing,  or  within  24  hours  if  sent  by  facsimile  or  telegram.

11.04     Assignment  and  Succession

Licensee  can  assign  or  transfer  this  Agreement or any of its rights or the
performance  of  its obligations under this Agreement, without the prior written
consent  of  the  Licensor.  All  rights and obligations of the parties shall be
binding  upon and shall endure to the benefit of their respective successors and
permitted  assigns.

11.05     Entire  Agreement

This  Agreement  constitute  the  entire  agreement  between  the parties hereto
relating  to  the  subject  matter  hereof  and  supersedes  all  prior  and
contemporaneous agreements, understandings, negotiations and discussion, whether
oral  or  written,  of  the  parties,  and  there  are  no  general  or specific
warranties,  representations  or  other  agreements  by  or among the parties in
connection  with  the  entering  of  this Agreement or the subject matter hereof
except  as  specifically  set  forth  herein.

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11.06     Unenforceable  terms

If  any term, covenant or condition of this Agreement or the application thereof
to  any  party  or circumstance shall be invalid or unenforceable to any extent,
the  remainder  of  this  Agreement  or  application  of  such term, covenant or
condition  to  a  party  or  circumstance  other  than those to which it is held
invalid or unenforceable, shall not be affected thereby and each remaining term,
covenant or condition of this Agreement, shall be valid and shall be enforceable
to  the  fullest  extent  permitted  by  law.

11.07     Counterparts

This  Agreement  may  be executed in several counterparts, each of which when so
executed,  shall  be  deemed  to  be  an  original  and  such counterparts shall
constitute  one  and  the  same  instrument  and  notwithstanding  their date of
execution,  shall  be  deemed  to  bear  date  as of the date of this Agreement.

11.08     Force  Majeure

The  parties  to  this  Agreement shall be excused from any performance required
hereunder  if  such  performance is rendered impossible or unfeasible due to any
catastrophes  or  other major events beyond their reasonable control, including,
without  limitation,  war,  riot, and insurrection, laws, proclamations, edicts,
ordinances  or regulations; strikes, lock-outs or other serious labour disputes;
and
floods,  fires,  explosions,  or  other natural disasters. When such events have
abated,  the  parties'  respective  obligations  hereunder  shall  resume.


11.09     Waiver

No  provision  of  this  Agreement shall be waived and no breach excused, unless
such  waiver  or  consent  excusing the breach shall be in writing signed by the
party to be charged with such waiver or consent. A waiver of a provision of this
Agreement  shall  not  be  construed  to  be  a  waiver  of  a  further  breach.
All  rights,  remedies,  and  benefits  contained  in  this  Agreement  shall be
cumulative  and  none  of  them  shall be a limitation or exclusion of any other
remedy,  right,  or  benefit  provided  by  this  Agreement  or  by  law.

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IN  WITNESS  WHEREOF  the  parties hereby executed this Agreement as of the day,
month  and  year  first  above  written.


Signed,  Sealed  and  Delivered             )
by  Lessor  in  the  presence  of  :        )

Witness                                     )
                                                   /s/ETSURO  SAKAGAMI
                                                   ---------------------
/s/SHRO  SAKAGAMI                           )        ETSURO  SAKAGAMI
Address:
1-28-1  Tamagaradai,  Seengaya-ku           )
Tokyo,  Japan                               )


Signed,  Sealed  and  Delivered
by  Lessee  in  the presence of                  AMANASU ENVIRONMENT CORPORATION
/s/Youzo  Kitahara
Address:
4-23-5  Kitasakae, Urayasu City                        /s/ATSUSHI MAKI
                                                      ----------------
UBA,  Japan
                                                         ATSUSHI  MAKI
                                                   President  and  CEO

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                                                                      SCHEDULE A

                           APPLIED PATENT SUMMARY LIST
1.     PATENT  APPLICATION  NO.  2002-207837; SEAWATER DESALINIZATION METHOD AND
       SEAWATER  DESALINIZATION  SYSTEM

          This seawater desalinization method is different from the conventional
          multi-stage  flush method and reverse osmosis method. The running cost
          of  this  equipment  is  low.  The patent was applied to establish the
          treatment  system  of  the  ring-tube  metal  surface.

2.   PATENT  APPLICATION  NO.  2002-228609;  DESULPHURIZATION  METHOD  AND
     DESULPHURIZATION  SYSTEM

          An  extremely  large-scale  facility  is  presently  required  to
          desulphurize  low-quality  heavy  oil  containing  sulfa and insoluble
          pyrrhotite,  such  as crude oil and fuel oil C. In the ring-tube metal
          surface  treatment  method,  the  viscosity of heavy oil is lowered to
          2,000cps  to  10cps  by  a  heating  pre-treatment  process  at  the
          temperature  of  approximately  150'C.  When high-frequency current is
          charged  to  the  pre-treated  heavy  oil,  sulfide  and  iron sulfide
          (pyrrhotite)  in  the  oil precipitate. When the oil flows through the
          ring tube, precipitated substance is completely removed. The series of
          the  process  procedures  is  built  into  the  system.

3.   PATENT  APPLICATION  NO. 2002-239789; FILTRATION EQUIPMENT AND I FILTRATION
     METHOD

          The  ring-tube  method is used to filter solid substance in liquid and
          quickly  separate  the  solid  and liquid. This equipment can not only
          separate  solid  and  liquid,  but  also  has  an  extremely effective
          dewatering  capability  with  lower  cost than conventional equipment,
          such  as  a  conventional  screw  decanter,  centrifugal separator and
          filter  press  equipment. The high-pressure pump can control the water
          content.

4.   PATENT  APPLICATION  NO.  2002-311460:  ZEOLITE MANUFACTURING METHOD ' WITH
     CINDERS  AND  THE  EQUIPMENT

          Effective  use  of  cinders  from  urban  garbage incineration is very
          limited only for manufacturing cement. Most of cinders are disposed of
          by  burying

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          at  controlled  disposal sites. However, securing of disposal sites is
          becoming  more  difficult  each  year.  This is a big problem for most
          municipalities  in  Japan. There is no other effective use of cinders.
          The  main  reason  for  this is that cinders from garbage incinerators
          contain a large amount of heavy metals, although only selected garbage
          is  incinerated. Removal of heavy metals at low cost is impossible. To
          solve  the  problem,  this  equipment  was  developed  to  make
          garbage-incinerated cinders harmless by the superconductive non-liquid
          type  magnetic  method and the artificial zeolite method. Coal fly ash
          is  one  type of cinder. The patent was applied as to be applicable to
          any  kind  of  cinders.

5.   PATENT  APPLICATION  NO.  2000-396165:  ARTIFICIAL  ZEOLITE  COMPOUND
     CONTINUOUS-MANUFACTURING  METHOD  AND  EQUIPMENT  BY  HEAT  REACTION  TUBE
     CONTACTING

          This  equipment,  not  like  the  conventional autoclave method, is to
          manufacture  white  color  artificial zeolite by making the mixture of
          waste  material  containing  aluminum  and  waste  material containing
          silica  in  a certain ratio react in the reaction pipe. This equipment
          was  developed to produce zeolite from waste fluid, such as fluid from
          aluminum  sash  frame  cleaning,  Alumite  manufacturing,  and  other
          aluminum  dross  by  the  alkali  liquid reaction. The batch method by
          autoclave  is used for manufacturing zeolite from coal ash or garbage-
          incinerated  cinders.  But,  this  equipment  can continuously produce
          artificial zeolite from waste liquid if the mixing ratio is controlled
          at  a  certain  ratio.

6.   PATENT  APPLICATION  NO.  2000-376462:  MANUFACTURING  METHOD OF ARTIFICIAL
     ZEOLITE  FROM  THE  RAW  MATERIAL  OF  ALUMINUM  DROSS

          This  method  is  to  produce white color artificial zeolite by mixing
          aluminum  dross  and  a  medium of alkali solution then adding silicic
          additive,  such  as  silicon,  and  applying cavitation effects of the
          ultrasonic  generator.  No  one  ever  thought  to  produce artificial
          zeolite  from  aluminum  dross.

7.   PATENT  APPLICATION  NO.:  2001  -79135:  FLOCCULATING  AGENT OF ARTIFICIAL
     ZEOLITE  COMPOSITION  AND  ITS  APPLICATION  FOR  SEWAGE  TREATMENT

          The  manufacturing  method  of  the  flocculating  agent  mixed  with

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          biologically  friendly  artificial zeolite, without using aluminum, is
          the  first technology of its kind in the world. This agent is regarded
          as  an innovative instantaneous flocculating agent from various fields
          that  fully  utilizes  the adsorption and ion-exchanging capability of
          artificial  zeolite  without  using  pH  adjustment.

8.   PATENT  APPLICATION  NO.  2003-72657:  PORTABLE-TYPE  WATER  PURIFICATION
     EQUIPMENT

          This  equipment  does not require a power supply source. The equipment
          is  operated  with a small size generator. This is small-size portable
          seawater  desalinization  equipment  having a small high-pressure pump
          and  can  produce  drinking water not only from seawater but also from
          muddy  water.  The equipment is designed so that this can be installed
          on  a  ship.  This  equipment  can be used to quickly produce drinking
          water  from  muddy  water for emergency use during a natural calamity,
          such  as  an  earthquake.

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                                                                      SCHEDULE B

WHAT  IS  THE  RING-TUBE  METHOD  SEAWATER  DESALINIZATION  EQUIPMENT?

1.   This  seawater  desalinization  system  is  an  application  of a comb-type
     filter.  There are two methods to remove sodium (Na) in seawater 1) To make
     the size of crystal of sodium (Na) molecules large by charging high voltage
     electricity  and  2)  to  remove  chorine  (Cl)  in seawater by a minus ion
     exchanger.  This  method seems to be rough, but it is applicable to various
     types  of  liquids  such  as  high  temperature  liquids,  acid  and alkali
     containing  liquids,  etc.,  without  regarding  their  harsh  qualities.

2.   By  changing  the length or width of the equipment or using pipe bends, the
     equipment  can  be  installed  in  a  small  limited  space. It can also be
     installed  in  a  standing  position  or  a  laid  down  position.

3.   The  pressure of seawater to be treated varies depending upon the precision
     of the plate rings, thickness of rings and the clearance between the rings.
     It  can  be  very  easily  adjusted  by  simple  means.

4.   The  openings  of  the  plate  rings  can  be  changed by the expansion and
     contraction  mechanism of the comb portions. This structure is suitable for
     back  washing  the  rings.  It is also possible to install a glass fiber or
     heat  resistance  filter between the plate ring unit and the outside casing
     as  an  option.

5.   Semi  automatic  or  full  automatic  type  of  equipment  can  be selected
     depending upon the preference of the customer. The full automatic equipment
     can  control  the water content of a dewatered cake at a desired percentage
     by  its  computer.

6.   The  equipment  can  be  easily  transported  by  mounting  on  a  vehicle.

7.   The  equipment  requires  almost  no  maintenance.

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        APPLICATION OF RING-TUBE METHOD SEAWATER DESALINIZATION EQUIPMENT


1.     USE  AS  A  FILTER:

          The  equipment is provided either with a metal filter or resin filter.
          The  filter utilizes the characteristics of the finishing precision of
          the  ring  surface  filter  precision  that changes in accordance with
          pressure difference between the inside and outside of the filter unit,
          and  filter  capacity.  The  level  of  liquid treatment can be easily
          changed  by  changing  the  filter  precision  and pressure difference
          depending  upon the type of liquid to be treated. The filter rings are
          made  of material that can withstand high temperatures in the range of
          160  to  190  C,  and  acid  and  basic  chemicals.

2.     USE  AS  DEWATERING  EQUIPMENT:

          The  equipment  can  be  used for dewatering of liquid and sludge. The
          equipment  structure  is  simple. Clogging of the filter can be easily
          prevented  by back washing. Dewatered cake can be automatically pushed
          out  through  the metal rings by the rotor thereby making back washing
          intervals  longer.

3.     SPECIAL  CASE  FOR  HIGH-LEVEL  TREATMENT:

          When  a  special  mono  pump  is  used,  the  shaft  should be made of
          stainless  steel  and  the  casing  of isobutylene-isoprene rubber. In
          addition,  heat-resisting  gaskets  should  be  used.  By  setting the
          maximum  pressure at 10Mpa (lOOkg/cm2), it is possible to increase the
          level  of  liquid  and  solid  separation  treatment.

4.     USE  OF  STERILIZING  FUNCTION:

          The  equipment can prevent the intrusion of bacteria by the fine rings
          as  well  as  collect  bacteria.  The  collected  bacteria  are either
          destroyed  or  made inactive by high pressure and high temperature. By
          adding  ozone,  the equipment can be used as a sterilizing filter that
          completely  destroys  bacteria.

5.     USE-AS  AN  OIL  AND  ODOR  REMOVER:

          When  oily and odorous particles in the air are washed with water, the
          cleaning  water  becomes  emulsion  form  liquid  containing  oily and
          odorous  waste.  The  oily  and  odorous  waste  coagulates  when
          instantaneous  artificial flocculating agent CINDERELITE is added. The
          coagulated  substances  containing  oily and odorous, particles can be
          removed  as  sludge  by  the  ring-tube method seawater desalinization
          equipment.

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          The equipment can be used for treating wastewater in kitchens and food
          processing  factories.

6.     USE  AS  DUST  REMOVING  EQUIPMENT  IN  CLEAN  ROOMS

          The  equipment  can  separate, dust, C02, NOx, O2, and H2O in the air.
          The  conventional  method  for  dehumidifying  a  refrigeration system
          requires high balance-adjustment costs. It is possible to collect dust
          by  misting  the  air  and  wash  out  the  misted  dust by water. The
          ring-tubes  of the equipment system clarify the wastewater and produce
          clean  air  then  return  the  clean  air  into the clean rooms. It is
          possible  to  set  up  a  system to provide clean rooms with clean air
          produced  by  the  ring-tube method seawater desalinization equipment.

7.     USE  FOR  TREATING  DRINKING  WATER,  SEWAGE  AND  WASTEWATER:

          By  using  this  equipment  as  supplemental  equipment  for  ordinary
          wastewater  and  drinking water treatment facilities it is possible to
          improve  the  treatment  efficiency of the existing facilities thereby
          contributing  to  reduce  the  running  costs  as  well as the initial
          investment  costs  of  the  facilities.

8.        CLARIFICATION OF RESERVOIR, RIVER AND LAKE WATERS AND TREATMENT OF
          POLLUTED WATER  PRODUCED  AT  CONSTRUCTION  SITES:

          By  the  combined  use  of  the  instantaneous  flocculating  agent of
          artificial  zeolite  Cinderelite  and  the  equipment,  the  size of a
          polluted  water  treatment  facility  can be reduced and, as a result,
          reduction  of  energy  consumption  and  initial facility construction
          costs  may  be  achieved.

9.     COMPARISON  WITH  ORDINARY  EQUIPMENT  AND  ENVIRONMENTAL  PROBLEMS:

          Most  of  ordinary  equipment is made of materials that are not strong
          enough  to  withstand  high  temperatures,  acid  and basic chemicals.
          Further,  these materials are physically not strong. Equipment filters
          are  easily  clogged  and  are difficult to replace. In addition, used
          filters  cannot  be  recycled and thus become industrial waste thereby
          causing  environmental  problems.  The  filter  unit of this equipment
          consists  either  of  stainless steel rings or titanium rings that can
          withstand high temperatures, acid and basic chemicals. Different types
          of filters can be selected to suit the type of liquid to be treated by
          this  equipment.

10.     APPLICATION  FOR  EXHAUST  GAS  TREATMENT:

          Smoke  and  soot  produced  when-burning  fuel  or incinerating waste-
          materials  are  normally  treated  by  a scrubbing mist separator. The
          wastewater  from  the

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          separator can be treated by adding instantaneous flocculating agent of
          artificial  zeolite Cinderelite then solid particles in the wastewater
          can  be  removed  by  the  ring-tubes of the equipment. This system is
          applicable  to  treat  cleaning  water  of  various coating booths. By
          making  the  system  a  smaller size it may be possible to utilize the
          equipment  to  treat  exhaust  gas  from  trucks.  The  application to
          automobiles  is  being  tested.

11.     DEWATERING  AND  VOLUME  REDUCTION  OF  SLUDGE  MATERIALS:

          Approximately 40% of major waste materials presently produced in Japan
          are sludge. Sludge can be classified into organic sludge and inorganic
          sludge.  The  disposal  methods  of  sludge  are  as  follows:

          1) Landfill 2) Make compost 3) Use as fertilizer 4) Use as animal feed
          5)  Burning  and  solidification  6) Conversion into chemical products
          through  chemical  treatment

          As  sludge  contains  a  large amount of water, most of the combustion
          heat  is consumed for evaporating water. In the case of sewage sludge,
          approximately  50% of costs for disposing the sludge that contains 80%
          of  water are consumed for dewatering. For the case of slurry produced
          by  mining  and  construction  industries,  it's  volume reduction may
          result in transportation cost reduction. In view of the above reasons,
          economical dewatering and volume reduction methods of sludge and waste
          materials  have  been  urgently  sought.  The  combined  use  of  the
          artificial  zeolite  instantaneous  flocculating agent CINDERELITE and
          this  equipment  will  be  extremely  effective  for  these  purposes.

12.  THE  EQUIPMENT  CAN EFFECTIVELY SEPARATE AND REMOVE SULFUR AND IRON SULFIDE
     (INSOLUBLE  PYRRHOTITE)  IN  HEAVY  OIL.

          By  charging  high-voltage electricity to C fuel oil by an ion charger
          then  processing  with a certain heat treatment method, the C fuel oil
          can  be  converted into a high quality fuel oil having a quality level
          equivalent  to  A  fuel  oil  by  the  ring  tubes  of this equipment.

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