EnviroTechnologies International Inc. (ETII)

[Housh]

Possible HNSS Share Structure

At the end of the year 2010, the company reported a 'weighted average' OS of 170,833,333.

Assuming that the company was not lying, and because of the reductions that had occured during the year, it is very likely that the actual OS at this time was around 130MM shares.

On July 11, 2011 when HNSS filed its Q1 2011 results, the 'weighted average' OS was stated to be 263,833,333. Again, with the same assumptions, and accounting for the 'weighted average' language, the actual number is likely closer to 280MM shares.

BEST CASE, during 1Q the company diluted by 263,833,333 - 170,833,333 = 90,000,000 shares.

MIDDLE CASE, during 1Q the company diluted 120MM shares

WORST CASE, during 1Q the company diluted by 280MM - 130MM = 150MM shares.

Now, the total traded volume during the 1Q was 103,817,700 shares. This is far below both the middle and worst cases, so those scenarios can be thrown out. But even our BEST CASE scenario, leaves only 13,817,700 shares traded that did not come from company dilution. That is only 13.3% of the traded shares. So, according to the BEST CASE (it is not possible for less shares than this to have been diluted, without the company lying), 86.7% of the traded shares was the company diluting.

During 2Q, 437,114,100 shares were traded. If the same statistics from 1Q apply to 2Q as well, then 378,977,925 shares could have been added to the OS in 2Q.

So, the current OS is somewhere between 263,833,333 and 642,811,258.