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ZENON Environmental Inc. Press release, OAKVILLE, Ontario, July 16, 2001

ZENON SIGNS ONDEO DEGRÉMONT AS LICENSEE




ZENON Environmental Inc. (TSE: ZEN, ZEN.A) is pleased to announce that it has concluded a licensing agreement with ONDEO Degrémont. The agreement will allow ONDEO Degrémont to assemble water and wastewater treatment systems using ZENON's proprietary ZeeWeed® immersed membrane technology.

ONDEO Degrémont is the water treatment specialist company within the ONDEO (Suez) Group. Headquartered in France, ONDEO Degrémont is present in more than 70 countries in the world, has over 3000 partners, in 2000, had revenues over 854 Million Euros.

This relationship is strategically important to ZENON to ensure better penetration of the French market and to take advantage of global opportunities where the wide range of capabilities of the ONDEO Degrémont Group are needed to complement ZENON's technologies for success.

For nearly 20 years, ONDEO Degrémont has been applying non-immersed membranes in water treatment plants. With ZeeWeed® as a complementary technology, the ONDEO Degrémont Group will be able to offer a complete range of membrane solutions.

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

Chosen as one of Canada's Top 100 Employers, the ZENON group of companies operates from nine locations in North America, six 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 municipal and industrial 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:


Andrew Benedek
Chairman & CEO
(905) 465-3030

or

Nazeli Seferian
Corporate Communications & Investor Relations
(905) 465-3030 ext. 3055
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