Zenon Environmental Takes Strong Action to
Support Shareholder Interests

Burlington, Ontario, July 6, 1999 –– ZENON Environmental Inc. today announced that its Board of Directors has approved a purchase of up to 978,253 common shares and 195,000 non-voting class A shares, representing 5% of the outstanding shares in each class.

The bid will commence, subject to approval by The Toronto Stock Exchange (TSE), on July 9, 1999 and will continue until ZENON has acquired the maximum number of common and class A shares permissible by July 8, 2000.

"ZENON's directors and management believe that our shares currently are trading at prices that do not reflect the value of the Company based on what we have accomplished and our world leadership in the area of advanced technology products and services for water purification, process separation, and wastewater treatment and recycling," said Dr. Andrew Benedek, Chairman and Chief Executive Officer.

"Our financial strength enables us to proceed with this bid and we believe that this is a good use of our funds, given the current undervalued price of ZENON's shares. The recent winning of new contracts totalling more than $10 million for our water and sewage treatment filtration technology is further evidence of the positive growth momentum that ZENON is continuing to achieve," he said.

ZENON will purchase the shares only through open-market transactions using the facilities of the TSE. The Company will buy and pay for the shares in accordance with the by-laws and rules of the TSE, at the market price at the time of purchase. The Company will cancel the purchased shares.

ZENON has 19,565,063 common shares issued and outstanding of which 11,238,722 are owned by directors and officers, and persons holding 10% or

more of the shares, leaving a public float of 8,326,341 common shares. The Company also has 3,900,000 non-voting class A shares issued and outstanding of which 1,026,800 are owned by directors and officers and persons holding 10% or more of the shares, leaving a public float of 2,873,200 non-voting class A shares.

 New Contracts Add to ZENON's Order Backlog

The Company continues to grow and business is progressing as usual. For example, $10 million of new bookings have been acquired by ZENON’s Municipal division during the last month. These contracts are for both drinking water and sewage treatment plants in North America. "If we add to these those contracts announced earlier, we see that ZENON is clearly in a leading position in this area of technology. Furthermore, it must be noted that our backlog is the highest it has ever been for this period," said Dr. Benedek.

ZENON is a world leader in providing advanced technology products and services in water purification, process separation, and wastewater treatment and recycle. ZENON's revenues for the year ended December 31, 1998 amounted to $77 million. The ZENON group of companies operates from six locations in North America, five 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:

Nazeli Seferian

(905) 639-6320 ext. 203