Columbia Western files Chapter 11 bankruptcy and will file plan of reorganization; plan endorsed by three largest creditors.

PORTLAND, Ore.--(BUSINESS WIRE)--May 17, 1995--Columbia Western Inc. (OTC Pink Sheets: RDNV), formerly known as Riedel Environmental Technologies Inc., announced today that it has filed for Chapter 11 protection under the federal bankruptcy laws. The company intends to file within one week a plan of reorganization to facilitate the distribution of its assets to its constituencies.

The company's principal liability consists of approximately $26 million of convertible debentures, including accrued interest. The plan of reorganization to be filed by the company has the support of holders of approximately half of the convertible debentures, and the company expects to solicit the support of all debenture holders within the next two months.

Stanford Springel, president and CEO of Columbia Western, said, "The board of directors of Columbia Western supports this creditor-endorsed plan of reorganization and we look forward to a consensual and expeditious Chapter 11."

"I am pleased with the proposed plan of reorganization," commented Marco Elser, principal of Elser & Co., the company's second-largest creditor. "I believe the plan provides recovery value for creditors superior to the recovery that could have been achieved through the liquidation of the company. We are excited about the opportunity to be significant investors in a company that will invest in new opportunities and work with World Security."

The plan of reorganization will provide unsecured creditors with the opportunity to elect to accept stock in Pine Brook Capital Inc., a to-be-formed Delaware corporation, with creditor-endorsed management, that will acquire from Columbia Western the stock of World Security Services Corp. and certain cash.

As an alternative, an unsecured creditor may elect for its claim to be satisfied through a payment of cash and, under certain circumstances, a small amount of notes issued by Pine Brook Capital. Finally, creditors may also elect to receive a combination of (i) Pine Brook stock and (ii) cash (and, perhaps, notes). The company expects that the stock of Pine Brook will be publicly traded.

Pursuant to the plan of reorganization, Columbia Western's unsecured creditors and existing equity holders will own 92.5 percent and 7.5 percent, respectively, of the primary stock of Pine Brook Capital in full satisfaction of their respective claims and interests.

World Security Services Corp., the sole remaining Columbia Western subsidiary still operating, will be transferred to Pine Brook Capital under the plan of reorganization. World Security is an alarm security monitoring company based in Portland, Ore. World Security has not filed for Chapter 11 and does not plan to do so.

"We intend that World Security will not be affected by the Chapter 11 reorganization of its holding company," commented Springel. "Over the long run, I believe that, compared to an immediate forced sale, World Security will be a more valuable entity and will benefit from the financial strength and stability of PIne Brook Capital, which will become its owner under the Columbia Western Plan of Reorganization."

Columbia Western filed its Chapter 11 petition in the District of Massachusetts for the convenience of its major creditors, who are located along the east coast of the United States and in Europe.

CONTACT: Columbia Western Inc.

Stanford Springel, 503/285-9111