ELI Eco Logic Inc. Announces Adoption of Permitted Bid Shareholder Rights Plan.

ROCKWOOD, Ontario--(BUSINESS WIRE)--Feb. 24, 1998--The Board of Directors of ELI Eco Logic Inc. ("ECO LOGIC") (TSE:ELI) announced today the adoption of a "permitted bid" shareholder rights plan that is to be submitted for ratification to shareholders at ECO LOGIC's Annual Meeting to be held June 18, 1998, in Toronto, Ontario.

The Board of Directors authorized the distribution, subject to receipt of all required regulatory approvals, of one share purchase right for each outstanding common share of ECO LOGIC held of record at the close of business on February 23, 1998. The Plan is intended, in the event of a take-over bid, to permit shareholders sufficient time to fully evaluate any offer and to permit the ECO LOGIC Board of Directors sufficient time to pursue alternatives with a view to maximizing shareholder value. The Plan is similar to many plans adopted by other publicly-traded Canadian companies.

Each right issued to shareholders under the Plan will entitle the holder to acquire common shares of ECO LOGIC at a 50% discount to the then current market price in the event of an acquisition of 20% or more of the common shares of ECO LOGIC by a person or group, by way of a non-Permitted Bid. The rights are not exercisable in the event of a Permitted Bid.

A Permitted Bid is a takeover bid that is made by way of a takeover bid circular to all of the holders of record of ECO LOGIC common shares, wherever resident, which provides that no common shares shall be taken up and paid for pursuant to the bid prior to the close of business on a date that is less than 60 days following the date of a bid. A Permitted Bid must also satisfy certain other conditions, including that more than 50% of the outstanding common shares held by persons unrelated to the bidder must be deposited pursuant to the bid and not withdrawn before any common shares may be taken up and paid for, and that, in the event that such number of shares are deposited, the bidder will make a public announcement of that fact and the bid will remain open for deposits of common shares for not less then ten business days following the date of such public announcement.

The rights will not be exercisable and will not trade separate and apart from the common shares at any time prior to a take-over bid that does not constitute a Permitted Bid. The Plan will expire in 2001 unless shareholders extend the Plan at the Annual Meeting held in that year.

ECO LOGIC's business is to solve toxic chemical problems in a safe, permanent, cost effective manner. The ECO LOGIC Process is an innovative technology that converts on-site, organic, hazardous waste into reusable or disposable products. This non-incineration process has gained high public and regulatory acceptance. ECO LOGIC's worldwide hazardous waste cleanup market includes PCBs, electrical equipment, contaminated soils, chemical warfare agents, petrochemical wastes, certain low level radioactive wastes and municipal sludge.

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CONTACT: ELI Eco Logic Inc.

Shari Box, 519/856-9591

Website: http:\\ www.eco-logic-intl.com

Email: [e-mail]