July 25, 2005

Zenon to help China improve infrastructure for 2008 Olympics

Zenon Environmental has received a purchase order worth approximately $5 million to provide its ZeeWeed membrane for tertiary treatment in China's Olympic Village. The project is part of a major program China is undertaking to improve its infrastructure in preparation for the 2008 Olympic Games in Beijing.

Among the program's initiatives is the treatment of municipal sewage with emphasis on re-use in an effort to relieve the growing water shortage in Beijing. Zenon's membranes will be treating secondary effluent from the Qinghe wastewater treatment plant near the Olympic Village. The treated effluent will be reused to improve and enhance the visual appeal of the village, providing water for lagoons and ponds as well as for landscape irrigation.

Work on the project is already under way with an expected construction time of 12 to 14 months. The facility should be operating by the middle of 2006. It is estimated that by 2008, nearly 90% of urban sewage will be collected and treated, with approximately 50% of that being recycled and re-used for various non-potable purposes.

After the Olympic Games are over, the government plans to continue operating the plant and selling the water for either irrigation or as toilet flush water.

In other activities, Zenon has appointed James (Jim) Hotchkies as senior vice-president for Europe, the Middle East and Africa (EMEA). He will be responsible for increasing the company's business across all market sectors in each of these regions, building on a model established by company chairman and CEO Andrew Benedek over the past 18 months.

An eight-year veteran of Zenon, Hotchkies created and developed the firm's Standard Systems Division (SSD) from what was its Land Development Systems. In his new post, Hotchkies plans to increase the company's industrial presence in some markets, improving municipal presence in others and expanding Zenon's commercial development systems in all markets. He said he also hopes to see a marked improvement in the sale of Z-MOD water and wastewater treatment systems, which incorporate Zenon's membrane technology in a line of affordable, pre-engineered and pre-assembled products.

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