Export Development Corp. Provides US$3.9 Million Guarantee for Andaurex Joint Venture Project in Bahamas.

TORONTO--(BUSINESS WIRE)--May 26, 1997--(VSE AWX.) Andaurex Industries Inc. today announced that the Export Development Corporation (EDC) has agreed to provide US$3.96 million in financial guarantees required for the previously announced US$19.8 million contract in the Bahamas, awarded to the Company's wholly-owned subsidiary, Markham Electric, and its joint venture partner.

Gregory B. Bowes, President of Andaurex, said that the continued support of EDC has been instrumental in the Company's ability to bid on and win new international infrastructure development contracts. He added that EDC's guarantees are not contingent upon Andaurex raising further capital. In light of this positive development, the Company's financing requirements are being re- evaluated. It is unlikely that the entire $2.0 million financing, which was previously announced and has not yet closed, will be required to fund 1997 projects.

Andaurex is a rapidly growing knowledge based company that is successfully exporting Canadian engineering, design and project management expertise to developing countries and emerging markets.

The Company's shares trade on the Vancouver Stock Exchange under the symbol AWX.

CONTACT: Andaurex Industries Inc.

Gregory B. Bowes, 905/ 470-0104

or

Hume, Kieran Inc.

Marla Gale, 416/ 868-1079

or

Hume, Kieran Inc.

Cathy Hume, 416/ 868-1079