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Attention Business Editors:
National Challenge Completes Bruce Eco-Industrial Park Anaerobic Digester Feasibility Study

TSX Symbol: NLC

WOODBRIDGE, ON, May 9 /CNW/ – In October 2005, the Company announced it had entered into a Letter of Intent with Canadian Agra Inc. to conduct a feasibility study. The study examined the establishment of a transfer station to manage organic residuals, and a centralized anaerobic digester that would co-process those residuals along with livestock manures to produce steam energy for the Bruce ECO-Industrial Park (BEIP) which is located near Kincardine Ontario.

The results of that Study lead the Company to conclude that as ADs become viable in Ontario, it is likely that numerous farm ADs will emerge creating a demand for the Company’s organic material. The Company also believes that the Government is committed to removing regulatory barriers to allow these farm-based ADs to process off-farm organic feedstock such as that collected by the Company, to produce renewable energy. Further, and primarily as a result of their geographic positioning, farm-based ADs would provide better long-term opportunities for the Company than the single large site proposed by BEIP.

NCS intends to maintain open and continuous communication with Canadian Agra as the AD industry develops in Ontario.

About National Challenge Systems Inc.

National Challenge is Canada’s largest provider of vacuum truck services
for the collection, treatment and recycling of organic and other non-hazardous liquid waste. NCS services in excess of 8,000 commercial, industrial, institutional and residential customers in Ontario, Quebec, and British Columbia. Further information about NCS may be obtained at the Company’s web site at

Note: Certain information contained in this press release may be forward-
looking and therefore subject to unknown risks or uncertainties. The actual
results, performance or achievements of National Challenge Systems Inc. may differ materially from the results, performance or achievements of the Company expressed or implied by such forward-looking statements.

For further information: Corporate Inquiries, Charles H. Buehler,
Chief Executive Officer,