OAKVILLE, Ontario, March 2, 2001 – ZENON Environmental Inc. (TSE: ZEN, ZEN.A) announced that it will be supplying Holland America Lines Westours (HALW) passenger cruise ships with a commercial shipboard application of its patented ZenoGem technology.

The contract, valued at approximately $5 million, encompasses the installation of ZENON's systems on two more ships.

"A year ago we purchased a ZENON system for the ms Statendam to treat gray and black water for discharge into the environment," said Stein Kruse, Senior Vice President of Fleet Operations. "With the successful results from that ship, we are excited to apply ZENON's system to two additional ships this year."

The ZenoGem membrane bioreactor will process both black and gray water for safe discharge into the environment. Gray water includes water from showers, sinks, galleys and laundry; black water comes from toilet collection systems onboard ships.

Until recently, gray water discharge has been largely unregulated. Today, the cruise line industry is faced with stringent wastewater discharge regulations on both gray and black water related to sensitive marine environments worldwide.

"In its commitment to maintaining a clean environment of the places it visits, Holland America has demonstrated its corporate responsibility and industry leading stewardship to meet and exceed current regulations," concluded Kruse.

"ZENON's technology will allow any marine vessel to comply with and beneficially exceed existing discharge regulations," said Andrew Benedek, ZENON's Chairman and Chief Executive Officer. "This contract represents a significant step in the wider adoption of ZENON's technology for the growing cruise ship market globally."

Also significant to ZENON's future success in this market is the recent partnering of ZENON with Evac, a world leader in vacuum sewage systems, with a reference list of more than 6500 ships over the last 30 years.

ZENON is a world leader in providing advanced membrane products and services for water purification, wastewater treatment and water reuse.

Additional information is available at the Company’s web site

For more information: Andrew Benedek, Chairman & CEO

(905) 465-3030

or Nazeli Seferian, Corporate Communications & Investor Relations (905) 465-3030