ELI Eco Logic Inc. Announces its Results for the Six-Month Period Ended June 30, 1997

Business Wire, August 28, 1997

ROCKWOOD, Ontario--(BUSINESS WIRE)--Aug. 28, 1997--

Financial Results Released for Six Months Ended June 30, 1997

ELI Eco Logic Inc. ("ECO LOGIC") (TSE-ELI) announced today its results for the six month period ended June 30, 1997.

Revenue for the three months from April 1, 1997 to June 30, 1997 was $1,638,931 (1996 - $819,769) a 100% increase from the same period last year. Revenue for the six month period ended June 30, 1997 was $2,812,381 (1996 - $1,905,252),a 48% increase from the same period last year. The net loss for the six month period was $5,878,227 (1996 - $5,107,506) or $0.76 per share (1996 - $0.74 per share). The net loss for the three months from April 1,1997 to June 30, 1997 was $2,903,584 (1996 - $3,765,763), a 23% decrease compared to the same period last year.

At June 30, 1997, the Company had current assets of $2,729,518 (1996 - $3,278,559), total assets of $19,964,345 (1996 - $22,050,675), current liabilities of $10,574,485 (1996 - $2,219,544), long term debt of $243,139 (1996 - $252,165), and shareholders equity of $9,146,721 (1996 -$19,578,966). On June 30, 1997 there were 7,737,935 common shares issued and outstanding.

As announced on July 15, 1997, ECO LOGIC has raised $19.3 million in gross proceeds through a Rights Offering. On July 18, 1997, the Company announced that debentures held by funds managed by Goodman and Company Ltd. and the Business, Engineering, Science and Technology Discoveries Fund aggregating $6,322,934 were repaid. The total outstanding amount was settled by issuing 1,428,700 Units, each comprised of a Common Share and a Warrant, and cash totalling $1,322,484. Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $4.54 per share at any time on or before July 15, 2000. This Offering has substantially improved the condition of the Company.

Dr. Douglas J. Hallett, President and Chief Executive Officer added, "ECO LOGIC is clearly now in the strongest financial position in the history of the Company".

ECO LOGIC's business is to solve toxic chemical problems in a safe, permanent, cost effective manner. The ECO LOGIC Process is an innovative technology that converts on-site, organic hazardous wastes into reusable or disposable products. This non-incineration process has gained high public and regulatory acceptance. ECO LOGIC's worldwide hazardous waste cleanup market includes PCBs, electrical equipment, contaminated soils, chemical warfare agents, petrochemical wastes, certain low level radioactive wastes, and municipal sludge.

CONTACT: ECO LOGIC

Shari Box, Rockwood (519) 856-9591

Fax (519) 856-9235

Web site: http://www.eco-logic-intl.com

Email:hallett@eco-logic-intl.com