Environmental Management Solutions Inc. announced today that it has been advised by the Ontario Securities Commission that the OSC is conducting an investigation of the trading in the company’s shares.

The OSC stated that the review was prompted by an announcement from EMS on Dec. 19, 2005 that the company had signed a letter of agreement for a
$20 million recapitalization and entered into settlement agreements with former chairman and CEO Frank D’Addario and related parties.

The OSC has asked for a detailed chronology of events leading up to that announcement, including a list of all persons who were aware of the recapitalization and the D’Addario settlement agreement.

In a release, EMS said it “is cooperating fully and promptly to provide the information requested by the OSC.”