Advanced Environmental Solutions Inc. and Seprotech Systems Inc. plan synergistic merger.

OTTAWA, Canada--(BUSINESS WIRE)--July 18, 1997--Advanced Environmental Solutions Inc. ("AES"), an Ottawa-based, NASDAQ OTC BB traded company, trading under the symbol AESA, and Seprotech Systems Inc. ("Seprotech"), an Ottawa-based, Alberta Stock Exchange traded company, trading as SET, announced today that a proposal made by AES to the board of directors of Seprotech to merge Seprotech into AES has been approved in principle by the board of directors of Seprotech.

The proposed transaction, which is subject to due diligence by both AES and Seprotech, regulatory approval and the entering into of definitive legal agreements for approval by the board of directors and presentation to the Seprotech shareholders for their approval, will result in a merger of Seprotech into the AES group of companies.

Under the proposed merger, each share of Seprotech will be exchangeable into one and a quarter shares of AES (or shares exchangeable with AES). On completion of the transaction, Seprotech will continue to exist as a subsidiary of AES with approximately 23% of AES shares (or shares exchangeable into AES shares) being owned by existing Seprotech shareholders.

Ken Bowker, chairman, president and chief executive officer of Seprotech, will assume the role of president and chief operating officer for AES. Dr. Mariusz Rybak will continue to act as chairman of the board and chief executive officer for AES.

AES is the owner of Adamas Environmental Inc. and Areco Canada Inc. Adamas is an environmental engineering firm offering management of environmental risks and liabilities while Areco is a certified state of the art environmental laboratory and an advanced environmental research center. Areco owns 66.67% of TRACC Technology Inc., the owner of a patented technology to trap heavy metals including radionucleids in industrial effluents and groundwater.

Seprotech designs, builds, and services systems which are used for water production, wastewater treatment and purification process applications, primarily for industrial clients. The company provides turnkey solutions to its customers, and offers pilot testing and technology selection services. Seprotech also operates a CAEAL certified environmental analytical laboratory.

Seprotech's international customer list includes: Coca-Cola bottlers, Dupont, Henkel Corporation, General Motors and Ault Foods. The combination of AES and Seprotech will result in the largest environmental analytical laboratory in Eastern Ontario. In addition, the TRACC technology will be introduced to the line of products available to customers of Seprotech.

The companies are jointly preparing materials to be sent to Seprotech shareholders in connection with a meeting to be convened to consider the merger proposal. The materials are expected to be mailed to shareholders by mid-August in connection with a shareholders meeting to be held in mid-September with closing expected immediately thereafter.

CONTACT: In the case of Seprotech

Ken Bowker, 613/523-1641

Fax: [phone]

or

In the case of AES, Mediacomm Marketing International Inc.

Don Montague, 303/987-8333

Fax: [phone]