American Eco Enters Negotiations to Acquire Davie Industries.HOUSTON--(BUSINESS WIRE)--Sept. 10, 1998--American Eco Corporation (American Eco) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ECGOF) announced today that it is negotiating to acquire Davie Industries (Davie) from Davie's parent company, Dominion Bridge Corporation (Dominion Bridge) (NASDAQ:DBCQE; VSE See DOS/VSE. VSE - Virtual Storage Extended :DMO DMO Debt Management Office (Bank of England) DMO Destination Marketing Organization DMO Defence Materiel Organisation (Australia) DMO Dental Maintenance Organization DMO Distributed Mission Operations .U). American Eco indicated that any transaction would be conditional on proper project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. being put in place for its Amethyst amethyst (ăm`əthĭst) [Gr.,=non-drunkenness], variety of quartz, violet to purple in color, used as a gem. It is the most highly valued of the semiprecious quartzes. II and III joint venture projects, requisite board approval of both companies and Dominion Bridge trustee authorization. "We see excellent value in Davie's facilities, production capabilities, and over $400 million in fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and maintenance backlog," said American Eco's president, Frank Fradella. These negotiations are being conducted taking into account the tight deadline imposed by the work schedule on the Amethyst II and III projects, among other factors. "It is important that negotiations for the acquisition and for project financing be completed expeditiously ex·pe·di·tious adj. Acting or done with speed and efficiency. See Synonyms at fast1. ex to allow for the resumption of the work necessary to complete the companies' existing backlog. The acquisition of Davie, given appropriate terms, would be in the interest of American Eco shareholders as well as Dominion Bridge shareholders, and would equally benefit Davie's workers, and the entire Quebec economy," Mr. Fradella concluded. Except for the historical information in this press release, the press release includes forward looking statements that involve risks and uncertainties including, but not limited to quarterly fluctuations in results, the management of growth, competition and other risks detailed in the Company's Securities and Exchange Commission filings. Actual results may differ materially from such information set forth herein.
CONTACT: Bruce Tobecksen
Senior Vice-President & CFO
Houston, Texas
888/774-3246
www.americaneco.com
or
Cindy Jackson
Director of Investor Relations
Houston, Texas
888/774-3246
cindy@americaneco.com
or
Sylvia Dresner
Senior Vice-President, VMW Inc.
New York, New York
212/605-3140
VMWeiner@aol.com
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