SET Bluemetric Environmental, Inc.

OTTAWA, March 14 /CNW/ -- OTTAWA, March 14 /CNW/ - Seprotech Systems Incorporated (TSX-V: SET) ("Seprotech" or the "Company") is pleased to report that it has now reached a final settlement with respect to a previously announced over-billing issue with its client, the Department of National Defence ("DND"). The final amount as agreed between the parties is $315,584 and as previously announced, DND has agreed that the matter can be rectified by way of credits against actual work currently in process. In this regard, $150,000 has already been paid to DND, with the balance expected to be repaid in full by April 30, 2011. As has previously been reported, the above-mentioned overbilling resulted in an overstatement of previously reported revenues in the Company's unaudited consolidated financial statements for the quarters ended November 30, 2009, February 28, 2010 and May 31, 2010. It has also resulted in a delay in filing the Company's Audited Annual Financial Statements for the fiscal year ended August 31, 2010, as well as the related MD&A and CEO and CFO certifications. The Company has also reported that for these reasons it would not be able to file its interim financial statements for the quarter ended November 30, 2010, and the related MD&A and CEO and CFO certifications, by January 31, 2011 as required under securities laws. The Company will now be able to complete the restatement of unaudited quarterly financial statements and related filings for fiscal 2010, to complete the Annual Audited Financial Statements and related filings for the fiscal year ended August 31, 2010 and to complete the interim financial statements for the quarter ended November 30, 2010. The Company is taking steps to bring all filings up to date by April 30, 2011. Jordan B. Grant, the new CEO of Seprotech stated, "The overbilling was discovered in an internal management review and we have demonstrated to DND that we take our responsibilities very seriously. We expect that this event will not affect our ability to compete for contracts with DND". Mr Grant continued, "this whole episode has obviously been very distracting for the company. We are pleased to now have it behind us so we can concentrate on our current priorities, which are converting our substantial sales pipeline into firm orders and addressing our working capital issues." Seprotech is a provider of pre-engineered water and wastewater treatment plants to the land development, resource sector and military market place, including CrystalBlue™ membrane-based water recycling systems and the ROTORDISK® wastewater treatment systems. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. Some of the statements in this press release, including those relating to the Company's strategies and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions, are forward-looking statements within the meaning of securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of the Company. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. The Company does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as required by law. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/March2011/14/c2615.html pMr. Matthew Anderson, Investor Relationsbr/ Tel: (613) 523-1641br/ Fax: (613) 731-0851/p

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