Newalta announces acquisition of wastewater recycling facility and related proprietary technology

CALGARY, ALBERTA, June 5, 2001 — Newalta Corporation announced it has signed a Letter of Intent to purchase the Aqua-Pure Ventures Inc. Calgary facility, the first industrial water recovery facility of its kind in Alberta.

Additionally, Newalta will acquire exclusive waste management use, in all of Canada, for Aqua-Pure's proprietary Compact Rising Film Evaporator and Electrofloc technologies.

The purchase price for the facility of $3,500,000 will consist of 857,143 common shares of Newalta and $500,000 cash. Subject to regulatory approval, closing will occur upon completion of a definitive agreement and other conditions customary in a transaction of this nature.

Newalta and Aqua-Pure have also agreed to form a strategic alliance which will capitalize on the strengths of the two companies. Newalta is committed to expanding services and improving processes through the introduction and application of new technology in its recovery and recycling operations. Aqua-Pure has successfully developed and acquired proprietary wastewater treatment and recycling technologies. The companies will work together to develop wastewater treatment technology at Newalta's operating facilities.

"Newalta will leverage wastewater technology to gain market penetration and add value to existing operations. The alliance with Aqua-Pure represents another step in executing our strategy to broaden Newalta's waste capabilities and enhance our ability to enter new markets", said Newalta's Alan P. Cadotte, President & CEO.

Newalta Corporation maximizes the inherent value in oil, gas and industrial wastes through the recovery of saleable products and recycling, rather than disposal.

Through 27 integrated facilities in western Canada, Newalta delivers world-class solutions to a broad customer base of national and international corporations, including producers of crude oil and natural gas, and automotive and industrial businesses.

With a strong track record of profitable growth and environmental stewardship, Newalta is focused on leveraging its proven competencies in new service sectors and geographic markets from coast to coast.