Eco Logic Announces First Quarter 1996 Results and Completion of Successful Rights Offering

Business Wire, May 2, 1996

TORONTO--(BUSINESS WIRE)--May 2, 1996--ELI ECO LOGIC INC. (TSE: ELI CANADIAN DEALING NETWORK: ELII.WT.A)--ELI Eco Logic Inc. ("ECO LOGIC") announced its results for the three month period ended March 31, 1996.

Revenue for the quarter was $1,085,483 (1995 - $397,448) which represented a 273 percent increase over the comparable quarter for 1995. The net loss for the period was $1,341,743 (1995 - $417,656) or $0.20 per share. At March 31, 1996, ECO LOGIC had current assets of $4,230,727 (1995 - $3,832,657), total assets of $22,911,451 (1995 - $9,650,939), current liabilities of $5,226,380 (1995 - $857,517), and shareholders' equity of $17,430,275 (1995 - $8,334,742).

ECO LOGIC had 6,666,562 common shares issued and outstanding at March 31, 1996. On April 26, 1996 ECO LOGIC's fully subscribed rights offering resulted in 738,253 common shares being issued for gross proceeds of $6,275,150. Dr. Douglas Hallett, president of ECO LOGIC stated: "The proceeds of this offering together with the Company's existing and planned debt facilities will be used for general working capital purposes, including the funding of our 1996 capital expenditure program, payment of existing accounts payable and for recruitment, training, marketing and sales activities. These proceeds will also fund our program to demonstrate the ECO LOGIC Process in the U.S. chemical demilitarization and defense-related hazardous waste and nuclear-related radioactive mixed waste markets for the U.S. Department of Defense and U.S. Department of Energy."

ECO LOGIC has developed and currently operates the ECO LOGIC Process at sites in Australia and Canada. The ECO LOGIC Process is a patented, mobile technology which can destroy organic wastes through gas-phase chemical reduction. The Process can separate toxic chemicals from soils, metals and other minerals, changing them into useful products. A closed-loop process, it eliminates the potential for any uncontrolled emissions often found with incinerators. The Process' mobility, cost and environmental acceptance make it a preferred method for destruction of high strength organic waste.

CONTACT: ELI Eco Logic Inc.

Terrence G. Ferguson, CA, 519/856-9591

519/856-9235 (FAX)

Web Site: http://ic.net/~eli

or

ELI Eco Logic Inc.

Maggie Treanor, 519/856-9591

519/856-9235 (FAX)

Web Site: http://ic.net/~eli

NOTE TO EDITORS: In the Web Site address noted in this news release, there is a "tilde" symbol between http://ic.net/ AND eli. This symbol may not appear properly in some systems.