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ZENON Environmental Inc. Press release, OAKVILLE, Ontario, September 6, 2001

COMMUNITIES CONCERNED WITH WATER CONSERVATION CHOOSE ZENON




High recovery of precious resource during treatment along with parasite protection among drivers for US communities to use membranes for water treatment

When every drop counts, municipalities look to the technology that wastes the least amount of water during the treatment process for producing safe, clean drinking water. ZENON Environmental Inc. (TSE: ZEN, ZEN.A) has been chosen by three such communities in the United States to provide its proprietary technology for contracts totalling approximately C$12 million.

"In areas where clean water sources are becoming scarce," said Andrew Benedek, Chairman and Chief Executive Officer of ZENON, "the use of a high recovery system that creates less waste during water treatment is increasing as a method of conservation."

Eastern Municipal Water District (EMWD) provides water services to a 555-square mile area with a population of 440,000 in western Riverside County in California. According to Bruce Mitzel of EMWD, engineering consultants CH2M Hill and Carollo provided them with the ultimate solution to achieving both a high level of water recovery along with a premium and consistent water quality.

"The best technology for our application was the ZENON membrane," said Mr. Mitzel. "Instead of purchasing potable water from the Metropolitan Water District and expanding the existing pipeline, we felt that building a new, more efficient plant was the viable economical alternative for our customers."

Evergreen, Colorado and Marysville, Washington will be the sites of two new drinking water plants for ZENON's technology. The Evergreen Metropolitan District's new plant will use ZeeWeedŽ membranes in a two step process to optimize water recovery.

Initially, ZeeWeed® membranes will purify surface water taken directly from nearby Evergreen Lake. The remaining untreated water will then be retreated in a second step, again using ZeeWeed® membranes, to provide additional premium quality drinking water.

In addition to decreasing the amount of wasted water during treatment, concerns over current and anticipated future regulatory requirements influenced the City of Marysville in its decision to choose the right technology for the new drinking water plant.

Currently, water from the Stillaguamish River is only disinfected with chlorine. The new plant will use ZENON's ZeeWeed® membranes to provide a safe and reliable drinking water supply to the community.

Both Evergreen and Marysville plants are scheduled for completion by mid 2002.

"These three new contracts show that ZENON is continuing to gain wider and wider market acceptance on the basis of the superior reliability and water recovery of the ZeeWeed® 500 series membranes," concluded Mr. Benedek.

ZENON, a TSE 300 company, 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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