FOR IMMEDIATE RELEASE . . . JANUARY 11, 2001

For More Information, Contact:

Mark J. Wright                               Dolores Chenoweth
Vice President & Chief Financial Officer     in.ves'com
Western Power & Equipment Corp.              (503) 469-0338
(360) 253-2346

               WESTERN POWER & EQUIPMENT ANNOUNCES THE TERMINATION
                    OF THE PROPOSED MERGER WITH E-MOBILE, INC
                    AND ITS SEARCH FOR A NEW MERGER CANDIDATE

      Vancouver, Washington -- Western Power & Equipment Corp. (NasdaqSC: WPEC)
announced today the termination of the proposed merger between WPEC and
e-Mobile, Inc. ("EMI"). The Board of Directors of WPEC has made a determination
to terminate the merger due to changes in the marketplace's valuation of
technology companies and its concern as to the potential delay in obtaining
NASDAQ approval of the transaction. EMI has agreed to issue to WPEC 1,400,000
shares of its common stock as consideration for WPEC agreeing to the
termination.

      EMI has retained Robert Rubin, a director of WPEC, to provide financial
and business consulting services including, but not limited to, assisting EMI in
arranging financing and has agreed to issue to Mr. Rubin 600,000 shares of its
common stock as compensation.

      WPEC also announced that it is seeking potential alternate merger
candidates in a continued effort to increase shareholder value.

      Information contained herein relating to future results and events
constitute forward-looking statements. Actual results in future periods may
differ materially from the forward-looking statements because of a number of
risks and uncertainties, including but not limited to fluctuation in the
construction, industrial, and agricultural sectors and general economic cycles;
the success of the Company's equipment rental business; rental industry
conditions and competitors; competitive pricing; the Company's relationship with
Case and other suppliers; relations with the Company's employees; the Company's
ability to manage its operating costs and to integrate acquired businesses in an
effective manner; the Company's ability to scale back expenses to meet lower
product demand; the continued availability of financing; governmental



regulations and environmental matters; consummation of any future merger and
asset purchase transactions; and risks associated with regional, national, and
world economies. Any forward-looking statements should be considered in light of
these factors.

      Western Power & Equipment Corp. sells, leases, rents, and services
construction, industrial, and agricultural equipment for Case Corporation and
over 30 other manufacturers. The company currently operates 21 facilities in
Washington, Oregon, northern Nevada, California, and Alaska.

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