Wavefront Energy & Environmental Services Inc. - Applied Seismic Research ("ASR") agrees to a judgment of non-infringement of U.S. patents 5,586,602,

18 October 2006

Wavefront Energy and Environmental Services Inc., a provider and licensor of proprietary technology for improved oil recovery and groundwater remediation is pleased to announce that it has reached a favorable resolution of its lawsuit against ASR.

In its lawsuit, Wavefront alleged that ASR tortiously interfered with the Company's existing and prospective business relationships with Oxy. Wavefront alleged that ASR made bad faith infringement statements to Oxy concerning Wavefront's technology and ASR's patents, one of which had expired, and that ASR's tortious interference caused Oxy to cancel the pilot study, resulting in monetary harm to Wavefront. Wavefront sought a declaration that it did not infringe US Patent 5,586,602, 6,015,010 and 6,899,175. Furthermore, Wavefront alleged that ASR engaged in unfair competition in violation of the Lanham Act and Texas common law.

In the Court's Memorandum of Opinion and Order filed on May 1, 2006, the case arose as a result of an email sent by William Stern of ASR to Occidental of Elk Hills Inc. ("Oxy") in which Mr. Stern informed Oxy that he believed Wavefront was infringing ASR's patents. The Wavefront tool charged with infringement that was to be installed at Oxy is known as the "Dragonfly" tool, which is a downhole tool that acts as a fast opening valve to release fluid that has been pumped and pressurized from a surface pump. Seven days after receipt of the email from Mr. Stern, Oxy terminated its relationship with Wavefront, and canceled a pilot study of the "Dragonfly" tool at one of Oxy's project sites. Wavefront's lawsuit followed shortly thereafter.

In a news release dated May 24, 2006 Wavefront reported that ASR filed a counterclaim against Wavefront claiming infringement of ASR's United States Patent No. 6,899,175. ASR sought unspecified damages as a result of the alleged infringement.

In an order signed by United States District Judge for the Eastern District of Texas Leonard Davis, it was ordered, adjudged, and decreed that:

1. Wavefront's "Dragonfly" tool, either alone or in combination with any

other component or process or manner of use, does not infringe any

claim of the ASR patents under any theory of infringement, including

but not limited to direct or indirect infringement, and induced or

contributory infringement; and,

2. Each of the counterclaims asserted by ASR was dismissed with

prejudice.

Wavefront President and CEO Brett Davidson commented, "We are pleased to have reached a favorable resolution of this matter. Management has always maintained that it did not infringe any ASR patents. The court ordered judgment supports Wavefront's position. We look forward to moving ahead with our business plan without the specter of patent infringement and given the judgment, we reserve the right to seek monetary damages from ASR for its actions at a later date."

About Wavefront Energy and Environmental Services Inc.

Wavefront offers a patented fluid flow technology that improves oil production, oil well stimulation, and optimizes groundwater remediation. Within the energy sector, the Wavefront's strategy is to license the technology to service providers, provide site licenses to oil producers and to acquire or earn working interests in mature oilfields. In the environmental sector Wavefront's patented process is licensed to service providers who implement the technology to reduce long-term liabilities associated with contaminated sites.

ON BEHALF OF THE BOARD OF DIRECTORS

WAVEFRONT ENERGY AND ENVIRONMENTAL SERVICES INC.

"Brad Paterson" (signed)

Brad Paterson, CFO and Director

Cautionary Disclaimer - Forward Looking Statements

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Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United Sates Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plan, objectives, assumptions or expectations or future performance, are "forward-looking statements". We caution that such "forward-looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. The Company expressly disclaims any obligation to up-date any "forward-looking statements".

THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES THE CONTENTS OF

THIS RELEASE WHICH WAS PREPARED SOLELY AT THE DISCRETION OF MANAGEMENT

For further information: D. Brad Paterson, CFO, (780) 486-2222 x224 Tel, investor.info@onthewavefront.com

Source: newswire

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