COMMITMENTS AND CONTINGENCIES

3 Months Ended

May 31, 2012

Notes to Financial Statements

COMMITMENTS AND CONTINGENCIES

NOTE 8:  COMMITMENTS AND CONTINGENCIES

In the case titled Letty Garcia v. Carl Palmer; Seychelle Environmental Technologies, Inc., et, al., brought in the Superior Court for the State of California, San Diego County District, the court found against the Company in May, 2012 for approximately $157,000.  This amount was reflected in our February 29, 2012 consolidated financial statements. The Company has evaluated the ruling and has appealed the verdict.

There is an additional unrelated lawsuit, Patricia Edwards v Seychelle Environmental Technologies, Inc., brought in the Superior Court for the State of California, Orange County District, from a former employee of the Company regarding a claim of $280,000 for wrongful termination based on discrimination.  The Company is vigorously contesting the claim.  In the opinion of management, based in part upon consultation with outside counsel, it is too early to make an opinion as to whether we will prevail.