Eastern Utilities agrees to acquire shares in Separation Technologies

Business Wire, June 18, 1996

BOSTON--(BUSINESS WIRE)--June 18, 1996--Eastern Utilities Associates (NYSE: EUA) today agreed to acquire approximately 1 million common shares in Separation Technologies, Inc., for approximately $4 million through its EUA Energy Investment Corp. subsidiary

Separation Technologies, a Needham, Mass., company, develops and installs high volume materials separation installations using its own unique and patented technologies.

"Separation Technologies fits EUA's goal of searching out energy-related niche-type investments for our EUA Energy Investment Corp. subsidiary," said Donald G. Pardus, chairman and chief executive officer. "The company has patented a system to separate unburned carbon from coal ash, providing high quality fly ash for use in making concrete. This can provide coal-burning power plants with a useful by-product to be marketed at the same time the process reduces potential environmental consequences of disposal of high-carbon fly ash."

"The system has been proven in commercial use at New England power plants," Pardus continued. "Our investment will enable the company to market it nationwide."

Lawrence A. Murray, chairman and chief executive officer of Separation Technologies, said: "We view EUA as an industry leader in environmental management. They provide our shareholder base with a needed level of utility experience and expertise."

EUA is a Boston-based diversified energy services company whose shares are traded on the New York and Pacific Stock Exchanges. Subsidiaries are Blackstone Valley Electric Co.; Eastern Edison Co.; Newport Electric Corp.; EUA Cogenex Corp.; EUA Energy Investment Corp.; EUA Ocean State Corp.; EUA Service Corp.; EUA Energy Services, Inc.; and Montaup Electric Co. Together, the companies are known as the EUA System. Information about EUA is available on the World Wide Web at http://www.eua.com

CONTACT: Eastern Utilities Associates, Boston

Clifford J. Hebert, Jr., 617/357-9590