Los Angeles, CA, December, 2009

Proteus Environmental Technologies has entered into an exciting new partnership with Pegasus Capital Advisors. Pegasus Capital Advisors, L.P. is a U.S.-based private equity fund manager that provides creative capital and business solutions to middle market companies across a variety of industries, with emphasis on businesses offering real-world sustainable business solutions. Proteus and Pegasus will work together to both find and improve these investment opportunities by combining the strengths of the Pegasus investment model with the new opportunities for sustainable profits made possible by the Proteus approach and technology strategy. Tony Michaels and Mark Bernstein will also join as Operating Advisors to Pegasus for their new Sustainable Century Fund.