ENCON Systems, Inc. announces completion of private placement.

HOPKINTON, Mass.--(BUSINESS WIRE)--Feb. 27, 1996--ENCON Systems, Inc. (Nasdaq: NCON, NCONW) today announced the completion of a private placement of 908,094 shares of newly issued Common Stock, for a total amount of $1,362,141with Cruttenden Roth Incorporated as the placement agent. Proceeds from the private placement will primarily be used for working capital and general corporate purposes.

As previously reported, in late December 1995, ENCON completed a private placement of 1,243,556 shares of newly issued Common Stock, generating gross proceeds of $1,865,334, also with Cruttendon Roth as the placement agent. These proceeds were primarily used to pay for the Company's November 1995 acquisition of Kemper Management Services.

Alan L. Freidman, ENCON's President and Chief Executive Officer, commented, "I am pleased to announce the completion of this private placement, which gives us yet further resources to pursue our growth goals."

ENCON Systems, Inc., headquartered in Hopkinton, MA, is a full service energy management company which develops and implements energy efficient projects for commercial, industrial and residential customers. The marketing and installation of ENCON's energy conservation projects are sometimes in conjunction with Demand Side Management Programs sponsored by public utilities. The Company also provides energy efficient systems and services to end-users outside the context of DSM programs in non-incentive based projects that are typically larger and more sophisticated than those undertaken in connection with utility-sponsored DSM programs.

CONTACT: ENCON Systems Inc.

Alan Freidman

President & CEO 

508/435-7700

or

AT THE FINANCIAL RELATIONS BOARD:

For General Info: Paula Schwartz

212/661-8030

For Analyst Info: David Mandy

For Media Info: Marty Gitlin