American Company to Help Solve China's Growing Waste Problem; Bach-Hauser Signs 1st Letter of Intent to Build Solid Waste Processing Plant in Xian, China.

NIAGARA FALLS, N.Y.--(BUSINESS WIRE)--Sept. 22, 1999--

China's explosive economic growth is creating a whole new problem: hundreds of millions of tons of waste. With a rapidly rising level of disposable income, China's population of over 1.3 billion people are finding that they have access to more and more consumer products. This more consumption-oriented Western lifestyle means growing mountains of trash. However, China now has a solution for its ever-expanding stream of solid waste. New York-based Bach-Hauser Inc. (OTC BB:BHAS) announced today that it has signed a letter of intent to build the first Total Recycling System(R) plant in mainland China.

The letter of intent was signed with the city of Xian, China. Bach-Hauser will design and build a recycling plant in Xian that utilizes the Total Recycling System that will reduce the amount of waste going into Xian's landfills by as much as 80%. The waste processing plant can handle 360,000 tons of municipal solid waste per year. The plant will be based on the proprietary technology of TCR Environmental Corp. of Ontario, Canada, for which Bach-Hauser owns worldwide rights.

"The Chinese representatives are very excited about our system. They know that they could potentially solve the country's gargantuan waste disposal problem just by implementing the Total Recycling System(R). Another exciting benefit is that our system will create new jobs and other regional economic stimulants that will benefit the local economy while improving the environment. This is very significant, because the increase in Chinese GDP has thus far mostly been concentrated in major metropolitan areas, leaving most smaller cities and rural China behind," explains Gord Carless, International Project Manager for Bach-Hauser.

Typically, each Bach-Hauser facility can process up to 40,000 tons per year. Because the city of Xian, China generates approximately 1,000 tons of garbage per day, the plant there will need to be much larger than normal, able to handle nine times more capacity than a typical Bach-Hauser plant. That means that the plant can process 360,000 tons of garbage a year and keep as much as 288,000 tons of that out of local landfills -- handling all of Xian's garbage.

"This is a major breakthrough, not only for Bach-Hauser, but for the American waste management industry in general. Selling turnkey operations or securitizing environmental processing plants in China represents a major source of potential profits for Bach-Hauser. We estimate that there is a need for at least 5,000 plants in China in the long run. And the fact that our system has received the Solid Waste Association of North America's award for the highest waste diversion rate in the industry should help us to secure our position as China's number one choice," believes Carless.

The Xian plant is scheduled to be completed next year. For Bach-Hauser, this project represents upwards of $27 million in additional net profits.

There is a growing need for environmentally responsible solutions to waste disposal. In the U.S., government mandates to handle waste in a more responsible and efficient manner have created a $70 billion North America environmental industry. Waste Management Inc. (NYSE:WMI) alone has over a $13 billion market capitalization. Internationally, the market potential is probably even greater.

Other major players in the waste management services industry include Allied Waste Industries (NYSE:AW), Republic Services (NYSE:RSG), Safety-Kleen Corp. (NYSE:SK) and Tetra Tech (Nasdaq:WATR).

The statements made by Bach-Hauser Inc. (Bach-Hauser) may be forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. Bach-Hauser believes that its primary risk factors include, but are not limited to: the need for substantial financial requirements; the need to develop effective internal processes and systems; changes in the overall economy; changes in technology; the number and size of competitors in its markets; continued and future strategic alliances; changes in the law and regulatory policy; and the mix of product and services offered in Bach-Hauser's target markets. Merger Communications (Merger) is a media relations firm employed by Bach-Hauser. The statements and opinions presented here represent the views of Bach-Hauser, not Merger, as the release is based on information provided by Bach-Hauser. Merger's compensation for its media relations services, including preparation of press releases, consists of a monthly retainer and stock. Merger and its employees may have a long position in the securities of the companies in which it distributes information to the media, and Merger may be buying or selling securities in the course of its regular business.