ENVIROSOURCE RECEIVES MULTI-SITE DELISTING FOR ITS ELECTRIC ARC FURNACE DUST TREATMENT.

STAMFORD, Conn.--(BUSINESS WIRE)--June 1, 1995--EnviroSource, Inc. (NASDAQ: ENSO) announced today that the U.S. Environmental Protection Agency (EPA) has issued a final rule delisting electric arc furnace (EAF) dust that has been stabilized using its Super Detox process. EAF dust is a hazardous waste generated by electric arc furnace steel mills ("mini-mills"). EnviroSource believes that this rule will provide an important growth opportunity for the Company and significantly increase revenues over the next several years.

The multi-site delisting rule, issued in response to a petition filed by EnviroSource's Conversion Systems, Inc. subsidiary, will allow the stabilized EAF dust to be disposed of as non-hazardous waste. It is unique in that it allows EnviroSource to install the Super Detox system at any mini-mill location following a relatively simplified notice and verification testing procedure. As a result, both the Company and EPA will be able to avoid the lengthy and costly process of an extensive delisting for each individual site, thereby minimizing the lead time to construct new on-site plants. Louis A. Guzzetti, Jr., President and Chief Executive Officer of EnviroSource, said that he is "extremely pleased" with the rulemaking which took nearly three years to obtain. "EnviroSource has worked hard to provide a safe and cost-effective alternative for the treatment and disposal of EAF dust. The EPA delisting is a vote of confidence in a state-of-the-art process that has achieved commercial success since 1989 at the largest mini-mill in the U.S."

The delisting is specific to Super Detox treatment of EAF dust and is significant because EAF dust is one of the largest hazardous waste streams generated by American industry. In fact, steel mills currently generate over 600,000 tons of EAF dust a year -- a number that's expected to climb to almost 800,000 in the next three years as the mini-mill sector continues to grow.

The Super Detox process renders EAF dust non-hazardous, making it suitable for disposal in "Subtitle D" non-hazardous landfills. The stabilized EAF dust processed by EnviroSource easily exceeds all applicable environmental standards.

This patented process was originally developed by Bethlehem Steel Corporation at its Homer Research Laboratories and has been perfected by EnviroSource during seven years of research and commercial activity. It relies on complex pozzolanic chemistry to actually change the physical properties of metal constituents to their least soluble form. EnviroSource believes it is a more environmentally sound alternative than existing High Temperature Metal Recovery (HTMR) processes. In addition, because Super Detox processing costs are not affected by fluctuations in commodities markets that have caused HTMR costs to vary significantly over the years, steel mill EAF dust management costs are also more predictable. EnviroSource's Treatment & Disposal Services subsidiaries have used the Super Detox process to treat over 275,000 tons of EAF dust at facilities in Illinois, Ohio and Idaho.

"This new rule validates the commitment we made over eight years ago to developing a commercially viable process that would make a substantial difference in the safety of EAF dust management, and justifies the technical and market research effort we undertook to meet this commitment," Guzzetti said. "Simply put, Super Detox takes something hazardous and renders it non-hazardous, in a manner that is both cost effective and environmentally sound."

EnviroSource is an environmental services company that supplies industrial customers with long-term specialized services, primarily the recycling, handling, stabilization or landfilling of environmentally sensitive wastes or by-products. The Company is the sole worldwide licensee for the Super Detox process.

CONTACT: EnviroSource

George E. Fuehrer 

602/935-6330