Conversion Technologies International announces joint venture to manufacture construction materials components.

HAZLET, N.J.--(BUSINESS WIRE)--July 25, 1996--Conversion Technologies International, Inc. (Nasdaq:CTIX, CTIXW, CTIXZ), an early-stage advanced materials company, announced today that it will enter into a joint venture with Vangkoe Industries, Inc. to manufacture coated particles for use as components in a variety of construction materials, including swimming pool plasters, commercial flooring and roofing.

The parties anticipate that the coating facility will be operational in approximately three months. Already under construction, it is located adjacent to Vangkoe Industries' existing product development research laboratory in St. Augustine, Florida.

Harvey Goldman, president and chief executive officer of Conversion Technologies, said, "This transaction represents an exceptional opportunity for Conversion Technologies to further demonstrate the versatility and broad market potential of our advanced materials. We are delighted to have access to Vangkoe Industries' proprietary coating technology as well as to the significant technical and marketing expertise of its principals in the related construction materials markets."

Vangkoe Industries is a newly-organized company formed by the principals of Cytech Laboratories, Inc., a privately-held industrial products research and development corporation with contracts with several large construction materials companies.

The joint venture will be conducted through a new manufacturing company to be jointly owned by Conversion Technologies and Vangkoe Industries. Vangkoe Industries will license its proprietary coating technology to the joint venture on a royalty-free basis. The joint venture will manufacture the coated particles, which Vangkoe Industries will use as ingredients in its proprietary products and also sell to other manufacturers and construction contractors. Conversion Technologies may also market the venture's coated aggregates.

Conversion Technologies and Vangkoe Industries will share equally in the profits generated on the sale of the particles through Vangkoe Industries.

Under the terms of the related agreements, Conversion Technologies will sell to Vangkoe Industries a minimum of 4,200 tons of material over a 12-month period, to include approximately 2,800 tons of the company's patented ALUMAGLASS(TM) brand particles and 1,400 tons of other particle products, representing combined sales for Conversion Technologies in excess of $1.25 million. In turn, this material will be coated by the joint venture. Inasmuch as Vangkoe Industries has limited assets, it is anticipating customer purchases to satisfy its raw material purchase commitments to Conversion Technologies. Therefore, there can be no assurance that Vangkoe Industries will be able to satisfy its minimum purchase requirements.

Jeff Koebrick, vice president of Vangkoe Industries, said, "Customers have already been sampling the joint venture's products. Our testing has shown that the combination of our unique particle coating technology and the advanced materials from Conversion Technologies yields products with exceptional cost and performance benefits. We believe these products will become the coated particles of choice in several large construction materials markets."

Conversion Technologies will provide start-up capital for the purchase of the particle coating equipment, which it will lease to the joint venture for nominal consideration. Vangkoe Industries will reimburse 50% of this amount to Conversion Technologies pursuant to a promissory note, and ownership of the equipment will be transferred to the joint venture. In addition to licensing its proprietary coating technology to the joint venture on a royalty-free basis, Vangkoe Industries has also agreed to license the technology to Conversion Technologies, for nominal consideration, for use at any future facility the company may establish.

Conversion Technologies is an early-stage advanced materials company manufacturing particles for use as industrial abrasives or as ingredients in construction materials. Its flagship product is an alumino-silicate material marketed as ALUMAGLASS(TM). In addition to its advanced materials manufacturing operations, Conversion Technologies also has an industrial recycling operation, through which it processes cathode ray tube glass for the electronics industry.

CONTACT: Harvey Goldman

President

CONVERSION TECHNOLOGIES INTERNATIONAL, INC.

908/888-3828

or

Stephen D. Axelrod

Jennifer Hendrickson

Susan T. Bolen (Media)

WOLFE AXELROD ASSOCIATES

[phone], [phone] fax

e-mail: [e-mail]