ZENON TO SUPPLY NEW MEMBRANE SYSTEM FOR WAIKATO RIVER PROJECT

Burlington, Ontario, October 26, 1999 - ZENON Environmental Inc. announced today that it will be supplying its leading edge ZeeWeed membrane filtration technology to a new drinking water plant to be built along the Waikato River in New Zealand.

Watercare Services Ltd, the water authority responsible for the project, awarded the contract to a consortium composed of McConnell Smith & Beca Consultants, Thiess Contractors, and CH2MHill. This consortium chose ZENON to be the supplier of its industry leading ZeeWeed membrane filtration system. ZENON’s portion of the contract is valued at approximately $7 million.

The plant, scheduled to be operational by 2002, will service the Auckland community and has planned expansions to over three times its initial size over the next 15 years – making this one of the largest ultrafiltration plants in the Pacific Rim.

"The success in this project has great strategic value to ZENON as it will be the first major reference plant in the Pacific Rim region. This area has great opportunities for ZENON’s technology and our recently opened Singapore office has the opportunity to exploit this," stated Dr. Andrew Benedek, Chairman and Chief Executive Officer. "ZENON is proud to have the opportunity to serve Watercare Services Ltd., a highly prestigious water company, providing water to the largest population base in New Zealand," continued Dr. Benedek.

ZENON is a world leader in providing advanced membrane products and services for water purification, wastewater treatment and water recycle. The ZENON group of companies operates from six locations in North America, six in Europe, and one in each of Asia, Latin America, and the Middle East.

ZENON's products and services are marketed for a variety of industrial, institutional, and government applications through ZENON's offices and representatives located throughout the world. Additional information is available at the company’s web site www.zenonenv.com.

For more information: David V.M. Hull

Senior Vice President, Finance & Administration

(905) 639-6320

Nazeli Seferian

Corporate Communications & Investor Relations

(905) 639-6320