Consolidated Envirowaste Industries - Financing Update.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 28, 1996-- CONS. ENVIROWASTE IND. (VSE: CWD ) The Company announces that it has agreed to sell by way of private placement up to 1,875,000 units at a price of $1.60 per unit for proceeds of up to $3,000,000. Each unit consists of one Common share and three-quarters of one Common share purchase warrant. For every four warrants held the holder shall be entitled to purchase three Common shares of the Company for a term of three years at a price of $1.60 per share in the first year, $1.76 in the second year and $1.94 in the third year. The subscription proceeds will be used to finance the building and operation of a composting plant in the Capital Regional District and for working capital. The private placement is subject to acceptance for filing by the Vancouver Stock Exchange.

The Company also announces that it is issuing a new convertible loan in the principal amount of $1,500,000, of which $1,400,000 will be applied to repay the outstanding principal of a convertible loan issued by the Company on February 21, 1995. The new convertible loan will bear interest at 8 percent per annum with interest payable quarterly and the outstanding principal and interest is to be paid in full five years after the closing of the transaction. The outstanding principal amount of the loan may be converted at any time prior to maturity at the option of the holder into Common shares of the Company on the basis of one share for each $1.54 of indebtedness in the first year and escalating $0.25 per share in each subsequent year up to a maximum of 974,025 shares. The new convertible loan will have detachable non-transferable Common share purchase warrants entitling the holders to purchase up to a maximum of 974,025 Common shares in the capital stock of the Company for a term of two years at a price of $1.54 per share in the first year and $1.69 per share in the second year.

The new convertible loan bears a lower rate of interest than the present loan and extends the maturity date for repayment. The additional funds will be used for working capital. The new convertible loan is subject to acceptance for filing by the Vancouver Stock Exchange.

The Company has engaged Komatsu Investments Ltd. of Hong Kong and Financial Telesis of Hawaii to provide investor relations services. Komatsu, which is owned by Pine Trust/Trust Corp. Ltd., owns shares representing approximately 1.22 percent of the outstanding shares of the Company. Financial Telesis is owned by Jeff and Natalie Dunster. The investor relations services to be provided, which will be directed toward developing international customer and shareholder bases for the Company, performing media introductions, shareholder communications and assisting the Company to consider and, if appropriate, pursue a listing on the OTC Bulletin Board and/or Nasdaq, are anticipated to cost the Company $700,000 over the next two years.

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CONTACT: Consolidated Envirowaste Industries Inc.

Douglas R. Halward, 604/856-6836