Aquagenix third quarter and nine months revenues climb 115.9% and 82.4%, respectively.

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--November 7, 1996--

Expect Continued Strong Growth and Strategic Acquisitions

Aquagenix, Inc. (NASDAQ:AQUX,AQUXW), announced today results for the third quarter and nine months ended Sept. 30, 1996. Revenues for the third quarter and nine months increased 115.9 percent and 82.4 percent, respectively, over the same periods in the prior year.

Revenues for the third quarter ended Sept. 30, 1996 increased to $3,073,286 from $1,423,540 reported in the third quarter of 1995. Net income for the third quarter of 1996 totaled $16,680, compared with a loss of $1,722,920 in the comparable 1995 quarter.

Revenues for the 1996 nine months rose 82.4% to $7,805,398, compared with $4,278,884 reported in the 1995 nine month period. Net income for the nine months ended Sept. 30, 1996 was $848,314 or $0.24 per share, compared with a net loss of $1,888,763, or ($0.56) per share for the nine months ended Sept. 30, 1995.

Andrew Chesler, chairman and president of Aquagenix said, "The robust revenue gains for the third quarter and nine months reflect an increase in the number of recurring surface water management, industrial vegetation management and wetland planting contracts. These contracts were brought about by intensive marketing and sales efforts and an increasing trend toward governmental and private outsourcing." Chesler added that the company's acquisition program also contributed revenues from industrial vegetation management contracts. He pointed out that the small profit in the third quarter was attributable to the company's aggressive growth strategy, emphasizing management building, infrastructure expansion, systems growth and a focus on increasing cash flow.

Aquagenix, Inc., is the leading, and only public company, providing aquatic and industrial vegetation management services to commercial, private, governmental and utility customers in the southeastern United States. Headquartered in Fort Lauderdale, it has service offices in Daytona Beach, Ft. Lauderdale, Ft. Myers, Jacksonville, Miami Lakes, Orlando, Palm Beach, Sarasota and Tampa, Fla.; Myrtle Beach and Hilton Head, S.C.; and is opening offices in Atlanta, Ga. and Montgomery, Ala. -0-

                Aquagenix Inc. and Subsidiaries
                       Financial Highlights
                         (Unaudited)

                             Three Months Ended     Nine Months Ended
                                 Sept. 30               Sept. 30
                             1996       1995        1996        1995

Revenues                  $3,073,286 $1,423,540  $7,805,398 $4,278,884

Income (loss) from
continuing operations         16,680  (188,526)     383,625   (11,720)

Discontinued operations:
  Loss from environmental
remediation business
segment, net of income taxes       0 (1,598,493)          0 (1,877,043)
  Change in allowance for
estimated phase-out losses
from environmental remediation
segment                            0          0     464,689          0

Net (loss) income           $ 16,680 ($1,722,920) $ 848,314 ($1,888,763)

Earnings (loss) per common
and common equivalent shares:
   Continuing operations-
     primary                  $0.00   ($0.04)         $0.11    ($0.00)
   Continuing operations-
     assuming full dilution    0.00    (0.04)          0.11     (0.00)
   Discontinued operations     0.00    (0.51)          0.13     (0.56)
   Net (loss) income per
     common share              0.00    (0.55)          0.24     (0.56)

Weighted average common and
common equivalent shares
outstanding:
   Primary                  4,009,739  3,126,887   3,551,489  3,342,194
   Assuming full dilution   4,015,436  3,126,887   3,555,277  3,342,194

Select Balance Sheet Items

                           Sept. 30, 1996           Dec. 31, 1995

Cash and Equivalents        $ 1,342,237              $   687,183

Total Assets                $12,126,550              $ 8,775,063

Total Liabilities           $ 6,921,227              $ 7,606,983

Total Stockholders' Equity  $ 5,205,323              $ 1,168,080

CONTACT: Aquagenix, Inc.

Andrew P. Chesler

[phone]

or

KCSA 

Paul Holm/Joseph A. Mansi

[phone], ext. 201/205