Total of $13 Million in California Membrane Contracts Goes to ZENON

July 3, 2003

The City of Redlands, California, has affirmed its commitment to water reclamation and environmental sustainability with the purchase of the ZeeWeed(R) MBR from ZENON, a leader in innovative membrane technologies.

California is one of the states that has been experiencing growing water shortages. The City of Redlands has taken the lead in optimizing the use of its limited drinking water supply by reusing wastewater for non- potable purposes. According to Douglas Headrick, chief of water resources for the city, the efficient use of recycled water will free up 2 billion gallons of limited water resources available for drinking water use.

The recycled water produced using ZENON's ZeeWeed(R) MBR will be sold to industrial, commercial, and agricultural customers. "With the implementation of membrane technology, we now view our treated wastewater as a valuable asset instead of a liability," continued Headrick.

"We are very excited about this project. We are essentially taking a 30-year-old wastewater treatment plant and turning it into a state-of-the-art facility, producing tertiary quality effluent. Once on line, in June of next year, this will be the largest installation of its kind on the West Coast." The largest water reclamation plant in North America is currently being built in Traverse City, Michigan, also using the ZeeWeed(R) MBR.

On the drinking water side, ZENON's existing installation already the largest operating membrane plant in North America is set to increase capacity. The Olivenhain Municipal Water District will be expanding to produce 34 million gallons of water per day.

"One of the many compelling reasons we selected the ZENON membrane system was the ease with which it can be expanded incrementally as we have the need for additional water treatment capacity," said Kimberly A. Thorner, Esq., assistant general manager of the Olivenhain Municipal Water District. "In June we awarded the contract to ZENON to expand our plant by another 9 million gallons per day to a total of 34 million gallons per day and we anticipate the plant being online by the end of this calendar year.

Source: ZENON Environmental Inc.

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