ZENON secures $10 million contract to treat municipal sewage

Italy to build world's largest membrane sewage treatment plant with ZENON technology

OAKVILLE, Ontario, May 14, 2001 — A community in Italy has chosen ZENON's technology to treat municipal wastewater for a thriving metropolitan region.

The project, valued at approximately $10 million to ZENON, is expected to be complete in August 2002.

"This will be the largest membrane wastewater treatment plant in the world," said Andrew Benedek, Chairman and Chief Executive Officer of ZENON Environmental Inc., "and will be an important reference site for us in Europe.

The order comes after the successful operation of a smaller leachate plant ZENON has had for the same customer for the last two years," added Mr. Benedek.

In an effort to control environmental pollution, the European Union is currently working on new directives for improved treatment of municipal sewage in its member countries.

In view of these future regulations, this Italian community has taken direct action by selecting the ZenoGem(r) system, which uses ZENON's unique ZeeWeed(r) membranes to filter water.

Once built, the ZenoGem(r) bioreactor will treat nearly 10 million gallons of wastewater per day and allow the community to safely discharge the treated water back into the environment. This patented technology draws clean water to the inside of the hollow membrane fibre, leaving impurities behind and producing superior water quality.

ZENON provides advanced membrane products and services for water purification, wastewater treatment and water reuse.

ZENON's products and services are marketed for a variety of municipal and industrial applications through ZENON's offices and representatives located throughout the world.

Additional information is available at the Company's web site www.zenonenv.com.