BOVAR Reports Second Quarter 1997 Results.

CALGARY, Alberta--(BUSINESS WIRE)--Aug. 6, 1997-- BOVAR (TSE:BVR) BOVAR Inc. reported that revenues increased 5.7 per cent to $25.0 million for the second quarter ending June 30, 1997 from $23.7 million in 1996. Net income for the second quarter was $1.7 million ($0.02 per share) compared to $1.7 million ($0.02 per share) for the same period in 1996. For the first six months of 1997 revenues increased 7.3 per cent to $47.4 million from $44.2 million. Net income for the first six months increased 11.9 per cent to $3.3 million ($0.04 per share) compared to $3.0 million ($0.04 per share) for the same period in 1996.

Cash flow from operations for the second quarter declined from the same period in 1996 reflecting income arising from the amortization of deferred revenues which does not result in cash flow. -0-

                         Three Months Ended   Six Months Ended
                               June 30            June 30
(millions of dollars
except per share data)    1997        1996     1997      1996
                         ------------------   ----------------
Revenues                 $ 25.0     $ 23.7     $47.4     $44.2

Net Income                  1.7        1.7       3.3       3.0

Per Share in Dollars       0.02       0.02      0.04      0.04

Cash Flow from Operations   0.0        5.1       0.2       9.8

Revenues of the Waste Management segment increased 31.4 per cent to $15.9 million in the second quarter of 1997 from $12.1 million in the second quarter of 1996. Revenues for the first six months of 1997 increased 13.5 per cent to $28.5 million from $25.1 million in 1996. The increase reflects improved revenues associated with the Swan Hills Treatment Centre ("Treatment Centre"). During the first half of 1996, BOVAR owned 60 per cent of the Treatment Centre and since July 12, 1996, BOVAR has owned 100 per cent. Waste volumes processed in the second quarter exceeded levels processed in 1996. Pricing for the treatment of waste has declined significantly from the prior year as a result of pricing practices of United States treatment facilities. The treatment of larger volumes of waste at lower prices has reduced the cash flow of the Treatment Centre to minimal levels. It is expected that the recently announced ruling in the United States to close the border for the importation of PCB waste from Canada will strengthen the market.

Revenues of the Engineered Products segment declined 9.5 per cent to $5.3 million in the second quarter of 1997 from $5.9 million in the second quarter of 1996. Revenues for the first six months of 1997 increased 29.4 per cent to $11.7 million from $9.0 million in 1996. Year to date revenue levels were higher in 1997 than 1996 for all of BOVAR's geographic regions other than Canada. Earnings improvement was consistent with the increase in revenues.

Revenues of the Environmental Services segment declined 32.9 per cent to $3.8 million in the second quarter of 1997 from $5.7 million in the comparable quarter of 1996. Revenues for the first six months of 1997 declined 27.6 per cent to $7.3 million from $10.1 million for 1996. Site remediation activity has declined substantially from 1996, as two significant projects obtained in 1996 were not repeated in 1997. This loss of revenues has significantly reduced profitability.

BOVAR has entered into a letter agreement to sell the consulting portion of its Environmental Services business. The sale price of $5 million is subject to adjustment based on the profitability of the consulting business prior to closing anticipated to be on September 30, 1997. The entire transaction is subject to due diligence. BOVAR will retain its interest in the Malaysian joint venture and the sale and rental of air quality monitoring trailers.

As previously announced on July 21, 1997, there was an explosion at the Treatment Centre that caused damage to the kiln's air management system and building. The kiln is not operating until repairs that are subject to regulatory approval are completed in approximately six months. Other treatment facilities continue to operate although only minimal revenues can be anticipated from these operations. BOVAR carries property and business interruption insurance which is responding to this incident. BOVAR intends, subject to regulatory approval, to bring on line a smaller kiln which has not operated since late 1996. This kiln has approximately 25 percent of the capacity of the main kiln and will enable the Treatment Centre to resume incineration activities at a reduced level.

BOVAR Inc., listed on The Toronto Stock Exchange under the symbol BVR, is one of Canada's leading international providers of environmental and waste management products and services. BOVAR operates and is the owner of Canada's only fully integrated hazardous waste treatment facility which is located near Swan Hills, Alberta. BOVAR's services are provided through BOVAR Waste Management, BOVAR Western Research and BOVAR Environmental.

CONTACT: BOVAR Inc.

Monty L. Davis, 403/235-8302

Fax: [phone]

or

Daryl W. Ferko, 403/235-8329

Fax: [phone]