BioSafe signs pact on 500 acre Pennsylvania landfill site; Potential revenues estimated over $300 million.

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jan. 10, 1996--BioSafe International Inc. (NASDAQ:BSFE) announced today that its 80 percent owned subsidiary BioSafe Pennsylvania Inc. has signed a purchase and sale agreement to buy a 100 percent interest in a landfill located on a 500 acre site in Rushville, Pa., approximately 30 miles southwest of Binghamton, N.Y.

BioSafe will own and operate the Pennsylvania site as a municipal solid waste landfill. In addition to the continuous operation of the permitted acres, BioSafe will use the company's patented landfill remodeling technology to reclaim new disposal capacity in one area of this sites. BioSafe's purchase of this landfill will be contingent upon the company's ability to obtain all the necessary approvals and permits required to operate the property as a landfill. Biosafe expects to begin operations at this landfill in the first half of 1997.

The location of the landfill will give BioSafe the ability to access waste streams from several large population centers including New York City, Long Island, upstate New York, New Jersey and Philadelphia. With a planned fill rate of 2,000 tons per day, the total project life is estimated at 15 years. Based on an expected initial tipping fee of $30 per ton plus expected annual CPI increases, potential revenues to BioSafe are estimated at approximately $20 million per year or more than $300 million over the life of the project.

In aggregate, the landfill agreements BioSafe now has under contract represent approximately $500 million in expected revenues over the life of the various projects.

In announcing the signing of the agreement, Dr. Richard Rosen, president and CEO of BioSafe International Inc., stated that, "This acquisition is a significant stepping stone to BioSafe becoming a consistently profitable company for many years. To have accumulated $500 million of expected future revenues since BioSafe came public last March is a true testament to our innovative approach to the solid waste problem that many municipalities face today."

BioSafe currently operates the 28-acre landfill in Fairhaven, Mass., the largest landfill remodeling project in the world. It also has agreements to remodel a 26-acre landfill in South Hadley, Mass. as well as a 10-acre landfill in Buckland, Mass. BioSafe also owns an 80 percent interest in a Vermont landfill located on a site which is approximately 200 acres. BioSafe expects to begin receiving revenues from these three projects in 1996.

Through landfill remodeling, BioSafe creates new space within the existing landfill footprint by reprocessing the landfill -- separating and storing the soil for reuse, shredding and compacting the remaining waste and then returning it to the landfill. BioSafe can often recover between 50 percent and 80 percent of the previously used space. The remodeling of this landfill by BioSafe will provide new waste disposal capacity through economically and environmentally sound methods to a region where landfill space is in short supply. BioSafe is currently reviewing and negotiating landfill remodeling projects with more than 30 municipalities throughout the mid-Atlantic and New England areas.

BioSafe International Inc. is a fast growing, innovative solid waste management company. The company is a world leader in "landfill remodeling" -- a patented process that BioSafe developed for recycling existing landfills. BioSafe is also evaluating additional opportunities to apply its patented materials and size reduction technologies, including tire and rubber waste recycling, medical waste treatment, dredged spoils remediation and industrial sludge disposal.

CONTACT: BioSafe International

Emily Peterson, 617/497-4500

or

Liviakis Financial Communications Inc.

Robert Prag, 916/448-6084