E/ONE's Q3 Revenues and Earnings Set New Records; '97 Earnings Expectations Upped.

NISKAYUNA, N.Y.--(BUSINESS WIRE)--Oct. 14, 1997--Environment One Corp. (NASDAQ:EONE) is posting third quarter revenue and operational earnings increases of 16 percent and 63 percent respectively from 1996's third quarter as a result of record unit shipments for Environment One Corp.'s GP 2000 Sewer System pump and strong Generator Condition Monitor sales.

Revenue totaled nearly $7 million in Q3, up from $6 million in the same period last year. Net operational income was $735,809 in the third quarter, up from $451,714 during the same period, an increase of 63 percent, with earnings per share of $0.16, rising from $0.11. Total income increased 100 percent in the period (from $367,581) due to a Q3 1996 note receivable write-off.

"We are further encouraged with other indicators of strong fundamental growth, including the gross margin moving above 40 percent and with earnings return on sales of 10.5 percent," according to Stephen V. Ardia, chairman and CEO.

"E/ONE productivity set many all-time records during the third quarter due to the efforts of our associates, who pulled together as a high performance team during the most intensive growth period in our history," said Ardia.

Demand for the company's products was fueled by a number of factors including growing needs for community sewers, reflected by the release of more record grinder pump orders and by a continued strengthening of the E/ONE Sewer System Distribution Network. Increased order activity for Generator Condition Monitors drove the Detection Systems business growth.

"Our outlook for the fourth quarter appears good and moving above trend," according to Ardia. "Continued growth in sales volume and increases in productivity allow us to raise our 1997 earnings expectations into the upper 40 percent growth range over 1996 profits."

RECENT CONTRACTS

Mauriceville, Texas

A record order in the $3 million range from Mauriceville, Texas represents the largest phase-one pressure sewer system contract yet for E/ONE's Grinder Pumps, which power the E/ONE Sewer System. The Texas job commenced shipping in September and will continue into 1998, with another $5-6 million of units planned over the multi-year buildout period.

It is designed by Schaumberg & Polk in Beaumont with sales and service support from Environmental Improvements Inc. (EI(2)) of Houston (an integral unit in E/ONE's new distribution network). The E/ONE system will sewer land previously considered prohibitive to central sewer and provide a platform for further economic growth of the community.

"E/ONE's partnership with Mauriceville represents a new era for pressure sewers in Texas, and an increased market presence for E/ONE. New levels of reliable service delivered by the E/ONE Sewer will demonstrate this preferred solution to many other communities plagued with failing septic systems in hard-to-sewer topographies," according to Ardia.

E/ONE is a leading manufacturer and provider of products and services for the disposal of residential sanitary waste with over a quarter million people now relying on E/ONE Sewers daily.

Japan

E/ONE Detection Systems Business has landed a major contract from Hitachi of Japan valued at approximately $750,000. The job marks the beginning of a new relationship with one of the world's major electric generating equipment manufacturers.

E/ONE currently builds Hydrogen Monitoring equipment for General Electric, ABB, and Siemens-KWU, and is recognized as a prime manufacturer of generator condition monitoring equipment worldwide.

Environment One is a leading manufacturer and provider of:

-- Products and services for the disposal of residential sanitary

waste.

-- Detection systems for the protection of high value equipment. -0- "SAFE HARBOR" STATEMENT UNDER PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Environment One is a leading manufacturer and provider of:

-- Products and services for the disposal of residential sanitary

waste.

-- Detection systems for the protection of high value electric

utility equipment.

The company's 1997 outlook and all other statements in this release other than historical facts are forward-looking statements that involve risks and uncertainties and are subject to change at any time. The company derives its forward-looking statements from forecasts based upon detailed assumptions about many important factors such as product demand, market conditions and competitive activities.

While the company believes that its assumptions are reasonable, it cautions that there are inherent difficulties in predicting the impact of certain factors, which could cause actual result to differ materially from predicted results.

These factors, as and when applicable, are discussed in the company's filings with the Securities and Exchange Commission, in particular its most recent Form 10-KSB. -0-

                         Environment One Corp.
                   Consolidated Statements of Income
           For the Three Months Ended Sept. 30, 1997 and 1996

                                       Three Months Ended Sept. 30,
                                            1997         1996

Revenue                                  $6,977,174   6,033,821

Costs and Expenses

      Cost of Sales                       4,126,376    3,876,205

      Selling and Marketing                 676,143      643,684

      General and Administrative          1,038,755      720,294

      Interest Expense, Net                  23,336       65,650

      Other Expense (Income), Net           (73,345)     134,702

Total Expenses, Net                       5,791,265    5,440,535

Net Earnings Before Taxes                 1,185,909      593,286

Income Tax Expense                          450,100      225,705

Net Earnings                               $735,809      367,581

Per Share Amounts:
Primary Earnings per Common Share             $0.16         0.09
Fully Diluted Earnings per Common Share        0.16         0.09

(See Accompanying Notes to Consolidated Financial Statements)

Memo: (Primary Earnings per Common Share)
Net Earnings - Operational                 $735,809      451,714
Net Earnings - Sale of IFD Business                            0
Net (Loss) - Note Receivable Write-Off                   (84,133)

Primary EPS - Operational                     $0.16         0.11
Primary EPS - Sale of IFD Business                          0.00
Primary LPS - Note Receivable Write-Off                    (0.02)

                        Environment One Corp.
                    Consolidated Statements of Income
             For the Nine Months Ended Sept. 30, 1997 and 1996

                                       Nine Months Ended Sept. 30,
                                            1997         1996

Revenue                                 $17,227,902   15,307,202

Costs and Expenses

      Cost of Sales                      10,819,066   10,446,106

      Selling and Marketing               1,896,824    1,726,926

      General and Administrative          2,359,796    1,489,956

      Interest Expense, Net                 105,282      195,478

      Other Expense (Income), Net           (83,566)     (45,388)

Total Expenses, Net                      15,097,402   13,813,078

Net Earnings Before Taxes                 2,130,500    1,494,124

Income Tax Expense                          811,400      566,505

Net Earnings                             $1,319,100      927,619

Per Share Amounts:
Primary Earnings per Common Share             $0.30         0.22
Fully Diluted Earnings per Common Share        0.29         0.22

(See Accompanying Notes to Consolidated Financial Statements)

Memo: (Primary Earnings per Common Share)
Net Earnings - Operational               $1,319,100      905,798
Net Earnings - Sale of IFD Business                      105,954
Net (Loss) - Note Receivable Write-Off                   (84,133)

Primary EPS - Operational                     $0.30        0.213
Primary EPS - Sale of IFD Business                         0.025
Primary LPS - Sale of IFD Business                        (0.020)

CONTACT: Environment One

Media -- George Vorsheim, 518/346-6161, ext. 3021;

Financial -- Philip Welsh, 518/346-6161, ext. 3082;

Web address: www.eone.com