Consolidated Envirowaste Sets up Allowance.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 16, 1997-- Consolidated Envirow (VSE:CWD.) The Company wishes to announce that it will set up an allowance of approximately C$1,500,000 against its consolidated and subsidiary accounts receivable and gross revenue to reflect the uncertainty of collecting an account receivable from a Florida-based customer that is operating under United States Chapter 11 bankruptcy protection. The customer was originally granted Chapter 11 bankruptcy protection on May 14, 1997 in order to restructure its business. The Company's Florida subsidiary, Consolidated Resource Recovery ("CRR"), provided wood waste to this customer for use as fuel in the generation of electrical power. The contract between CRR and its customer predated the Company's acquisition of CRR.

Sales to this customer accounted for approximately 18% of CRR's revenue or approximately 13% of the Company's consolidated revenues. The effect of the allowance will be to reduce the Company's fiscal 1997 consolidated income by C$1,500,000 and the Company's net income after tax by $930,000. This will result in a reduction in the Company's earnings per share of $0.10. Although this event has negatively affected the Company's working capital and consolidated revenue, it does not affect the Company's ability to meet its obligations nor will it affect our ability to execute our acquisition growth strategy.

Chapter 11 bankruptcy protection is intended to provide the protected party with the benefit of a period of time wherein it can reorganize its business activities and negotiate a payment structure with its various classes of creditors that will allow it to discharge its negotiated obligations in the normal course of their post-Chapter 11 business.

In recent years the electrical utility industry in the United States has been deregulated. This has resulted in a reduction in the rate structure between the suppliers and producers of electrical power.

CRR's customer is in the business of generating electricity for sale to Florida Power & Light Company ("FPL") under a long term contractual arrangement. In the period following the granting of bankruptcy protection to its customer, CRR has continued to monitor the progress of the customer's Chapter 11 business activities and has provided wood waste services to the customer on the basis that the customer provide a weekly deposit to CRR in advance of the work that would be performed by CRR. As a result, the Company and CRR were of the opinion that the customer would successfully reorganize its business affairs and that CRR would receive its outstanding account receivable.

CRR's customer and FPL have been unable, to date, to renegotiate the terms of their long term supply contract and have recently become involved in litigation to resolve the issue. On September 11, 1997, CRR's customer sent notice to CRR that FPL had refused to make payments under its contract and that they were evaluating whether or not to suspend power plant operations. Notice of this action has materially changed the opinion of the Company's and CRR's management. At this time, the Company is unable to determine the timing or probability of recovering any or all of the funds owed to CRR. The Company has elected to use a conservative approach and establish the allowance which represents the full amount of the customer's account receivable.

CONSOLIDATED ENVIROWASTE INDUSTRIES INC.

Douglas R. Halward, President -0- 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

604/856-5644 (FAX)

1-800-667-1942