Hi-Rise Recycling Systems Inc. completes acquisition of nation's leading chute company.

MIAMI--(BUSINESS WIRE)--Feb. 6, 1997--

Acquisition of Wilkinson Co. Inc. gives Hi-Rise access to

nationwide distributor network

Acquisition will have significant impact on Hi-Rise revenues

Hi-Rise Recycling Systems Inc. (NASDAQ:HIRI) has completed the acquisition of Wilkinson Co. Inc. of Stow, Ohio, the oldest manufacturer of trash, recycling and linen chutes for high-rise apartment buildings, condominiums and hotels, as well as a line of architectural products.

"This is one of the most significant developments in the history of our company," said Don Engel, chief executive officer and co-chairman of Hi-Rise Recycling Systems Inc. "With Wilkinson's extensive distribution network in over 70 markets which they represent, we will be able to accelerate our growth efforts significantly. We now have the sales network to replicate our successful South Florida new construction campaign which has resulted in a 75 percent market share. The combination of the Hi-Rise System or compactor and trash chute can now be sold by a single company as a complete system."

The acquisition was consummated by Hi-Rise providing 90 percent cash and 10 percent of its common stock. Specific terms were not disclosed.

The 74-year-old manufacturing company, which is considered the standard in the new construction industry, has approximately 65 distributors throughout the U.S., Canada, and foreign markets as well. In addition to chutes, the company specializes in stainless steel products for the building industry including lighted bumper rails, corner guards, kick plates and recycling containers.

Wilkinson reported revenues of $4.3 million in 1996.

Engel also pointed out that with Hi-Rise's present backlog of $3.5 million and Wilkinson's anticipated sales for 1997, company revenues will substantially increase for the current year compared to last year.

Hi-Rise intends to keep Wilkinson's employee structure in place and consolidate both manufacturing and engineering for all Hi-Rise entities at the company's Ohio facility. Hi-Rise believes it can generate considerable savings by combining the various production facilities.

Engel indicated that this acquisition could also serve as a springboard for additional acquisitions of products to complement the existing Wilkinson distributor network.

Hi-Rise Recycling's patented and automated recycling system for multi-story buildings uses the trash chute and a sorting mechanism to separate and collect recyclables.

Hi-Rise Recycling has contracted over 130 systems in residential, mixed-use, universities, senior housing and new construction multi-family buildings around the United States and Canada.

CONTACT: Peter Nasca, 305/937-1711

or

Don Engel, 212/371-2775