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ENVIRONMENTAL TECHNOLOGIES USA REPORTS HIGHER SALES AND SMALLER LOSSES FOR SECOND QUARTER

 MINNEAPOLIS, Nov. 18 /PRNewswire/ -- Environmental Technologies USA, Inc. (NASDAQ: ENVRC) (ETI), today reported that sales for the second quarter ended Oct. 31, 1993, rose 1,283 percent to $444,796 from $32,170 for the same period last year. Sales for the six months ended Oct. 31, 1993, were $831,602, up from $62,541 a year earlier. Prior year results do not include financial statements from Clean Green Packing which was acquired Nov. 3, 1992. On a pro-forma basis, including Clean Green, sales would have been $208,660 for the three months ended Oct. 31, 1992, and $436,527 for the six months ended Oct. 31, 1992.
 ETI also reported that losses for the second quarter dropped significantly from first quarter levels. Net loss for the second quarter was $409,630 or $.08 per share, down from $620,644 or $.13 per share in the first quarter. For the same period a year earlier, ETI reported a second quarter loss of $328,302 or $.16 per share.
 Operating losses in the second quarter fell to $374,192 from a loss of $608,431 in the first quarter and a loss of $326,563 for the same period a year ago.
 "We are very pleased with our second quarter performance," said Robin Young, chief executive officer for Environmental Technologies. "While our sales rose $57,988 over first quarter levels, our losses dropped by over $211,000 for the same period. And perhaps even more importantly, cash used in operations for the quarter came to only $137,768. By contrast, cash used in the first quarter amounted to $370,991.
 "ETI has clearly turned a corner. The company today is in as good a shape as it has ever been to expand production at United Recycling, bring both United and Clean Green Packing to additional geographic locations and establish ETI as a leader in environmental products and services."
 Environmental Technologies USA, Inc., through its wholly owned subsidiaries, develops, manufactures, markets and distributes biodegradable and recycled substitutes for virgin plastic resins. Clean Green Packing of Minnesota manufactures and distributes biodegradable starch based foam loose fill packing material. United Recycling, Inc. converts post consumer carpeting into polymer resins for remanufacturing commercial and consumer products.
 ENVIRONMENTAL TECHNOLOGIES USA, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (UNAUDITED)
 Three months ended Six months ended
 10/31/93 10/31/92 10/31/93 10/31/92
 Revenue $444,796 $32,170 $831,602 $62,541
 Cost of goods sold 394,464 27,486 741,759 33,768
 Gross profit 50,332 4,684 89,643 28,773
 Selling, general and
 administrative expenses:
 General and
 administrative 342,958 207,393 788,165 420,581
 Research and development 500 123,854 122,169 309,429
 Goodwill and technology
 rights amortization 81,066 -- 162,132 --
 Total expenses 424,524 331,247 1,072,466 730,010
 Loss of operations (374,192) (326,563) (982,623) (701,237)
 Other income (expense):
 Interest income 480 1,520 782 2,349
 Interest expense (37,800) (10,844) (50,317) (14,456)
 Other 1,882 7,585 1,884 1,206
 Total other income
 expenses (35,438) (1,739) (47,651) (10,901)
 Net loss $(409,630) $(328,302) $(1,030,274) $(712,138)
 Net loss per share $(.08) $(.16) $(.21) $(.36)
 Weighted average common shares
 and common share equivalents
 outstanding 4,850,146 2,056,318 4,850,146 1,977,796
 -0- 11/18/93
 /CONTACT: Charles Pyle, president, 612-929-7175; or Robin Young, chairman, 612-789-5933, of Environmental Technologies USA/
 (ENVRC)


CO: Environmental Technologies USA, Inc. ST: Minnesota IN: ENV SU: ERN

CP-DB -- MN013 -- 6261 11/18/93 17:12 EST
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Date:Nov 18, 1993
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