IDM Environmental to Participate In Revitalization Projects in Lubmin, Germany, Valued at Over $500 Million.

SOUTH RIVER, NJ--(BUSINESS WIRE)--Sept. 16, 1998--

Company is Part of IVO Power Plant Project

IDM Environmental Corp. (NASDAQ:IDMC, IDMCW) today disclosed that the Government of Germany has formally announced the signing of a contract with the IVO Energieanlagen GmbH and IDM Environmental Corp. consortium that officially begins the work on the previously announced development of several re-industrialization and revitalization projects at the Energiewerke Nord (EWN) site in Lubmin, Germany. The first project involves the development and construction of a Combined Cycle Power Plant (CCPP), the first phase of which will produce 750 megawatts (MW) and which will be expanded to produce 1,700 MW in a planned second phase of the project. Development work on this project is expected to begin immediately and the power plant is scheduled to be operational by 2003.

The power plant project will involve investments of DM 800 million (approximately $450 million). In accordance with the provisions of the consortium's agreement with the German Government, IVO will be responsible for the development and financing of the power plant and IDM will have responsibility for the other elements of the revitalization activities at the site. IDM will maintain a minority equity interest in the power plant. IVO Energieanlagen is a subsidiary of Imatran Volma OY, Finland's largest power company, and one of the 15 largest power companies in Europe.

The IVO-IDM consortium has also signed an agreement with Magellan Biotechnology, a unit of Foremost-Magellan, a Taiwanese-American high-technology holding company, for the development and construction of a $25 million to $30 million aquaculture complex for the production of shrimp and flatfish. The complex will consist of a 10-hectare indoor production facility, high-tech laboratories and a feed plant and a 50-hectare outdoor production facility. Under the agreement, IDM will provide Magellan with the following management and construction services valued at approximately $25 million: site infrastructure, including water supply; process equipment (making maximum use of IDM's inventory of equipment and plants); and the refurbishment of existing buildings at the Lubmin site that will house the indoor production, laboratories and feed plant. IVO will supply the complex with thermal and electrical energy from the on-site power plant. The Government of Mecklenburg-Vorpommern has also agreed to provide Magellan and the IVO-IDM consortium with full assistance and support, including government subsidies and other incentives. Initial design and construction work on the project, which is valued at $3 million, is expected to begin in the fourth quarter of 1998 to ensure operations by Magellan by the spring of 1999.

The signing of these contracts marks the first step toward completing the privatization and re-industrialization of Energiewerke Nord (EWN) and the Lubmin planned development that was announced earlier this year. This plan involves the decommissioning and waste management/disposal activities for six nuclear power plants in Lubmin and one small reactor plant in Rheinsberg, Germany.

The following press release was issued by Jurgen Seidel, minister of Economics of the German State of Mecklenburg-Vorpommern, and is translated from the German language. Ministry of Economics -- Mecklenburg-Vorpommern the Minister

SEIDEL:MECKLENBURG-VORPOMMERN WILL BECOME AN EXPORTER OF ELECTRICITY IN THE MEDIUM-TERM

POWER AND INDUSTRIAL LAND SOLD TO IVO ENERGIEANLAGEN; FINNISH-AMERICAN CONSORTIUM COMPRISED OF IVO ENERGIEANLAGEN GmbH AND IDM ENVIRONMENTAL CORP. PLANS CONSTRUCTION OF A CCPP POWER PLANT AND EXTENSIVE INDUSTRIAL SETTLEMENT

SCHWERIN, Germany--Sept 10, 1998--Economics Minister Jurgen Seidel (Christian Democratic Union -CDU) "I am very happy that a basic agreement and land contract has been signed with IVO Energieanlagen GmbH and its consortium partner, IDM Environmental Corp., following the conclusion of contracts between Energiewerke Nord (EWN) and VASA Energy on 8/20/98, to build a combined cycle power plant (CCPP). In the first phase of the project, IVO will build a 750-megawatt (MW) CCPP plant that will be operational by 2003. The expansion of the EWN site in Lubmin will have medium term effects on power rates in Mecklenburg-Vorpommern. Not only will consumers then pay less for gas, but electric rates will also drop in the future."

IVO Energieanlagen, Gmbh, with headquarters in Hamburg, has been working with EWN regarding the construction of a gas-fired power plant for more than one year. In the framework of EWN's request for proposals of April 1998, IVO Energieanlagen together with IDM Environmental in New Jersey, USA, submitted a proposal for building a CCPP plant and the establishment of at least 300 industrial jobs.

IDM, a leading company in the field of industrial plant relocation and in the re-development of industrial sites, is the partner of IVO which today concluded the contract with EWN for the acquisition of the land for the power plant and other industrial undertakings. IDM will be responsible for the development of new industrial investments in the fields of aquaculture, biotechnology and electronics. The IDM-IVO reindustrialization plans also call for investments in the areas of mini-steelworks and the manufacture of ammonia fertilizer.

Seidel: "Investments on the order of 800 million German Marks (DM) will be made for the power plant and approximately 180 million DM for the industrial plants. I am very optimistic that the two power plants will attract industry and small and medium sized businesses to Lubmin. Lubmin's industrial area satisfies all requirements for a modern commercial site. It is an outstanding location for the future 'Scandinavian-Baltic' market, has very skilled workers and excellent connections for rail, highway and water transportation."

The foregoing discussion contains forward looking statements which are based on current expectations. Actual results, including the timing and amount of revenues recognized, contracts awarded and performed and net income, may differ materially due to risks and uncertainties, including: inability to negotiate an acceptable pricing structure for the sale of electricity; possible fluctuations in demand for energy; the present lack of a funding source to finance construction of the proposed facility; possible cost overruns in the construction or operation of the facility; delays in payment on contracts due to dealing with governmental and foreign entities; fluctuations in operating costs associated with changes in project specifications and general economic conditions; substantial fluctuations in revenues; economics, and other conditions affecting the ability of prospective customers to finance projects; and other risks generally affecting the timing and financing of projects.

IDM Environmental Corp., headquartered in South River, N.J., is a diversified services company offering a broad range of design, engineering, construction, project development and management, and environmental services and technologies worldwide. The company, through its domestic and international affiliates and subsidiaries, offers services and technologies in three principal areas: Energy Project Development and Management, Environmental Remediation, and Plant Relocation Services. Capitalizing on more than 20 years of project engineering experience in environmentally sensitive settings, IDM (1) has entered into and is actively involved in the design, development, ownership and operation of energy facilities in the developing nations of the world, (2) has entered into and is actively involved in the decommissioning and site industrialization and revitalization of nuclear power plants, (3) has established a position as a world leader in plant dismantlement, relocation and re-erection services, and (4) is a leading provider of full-service turnkey environmental remediation services. In addition, IDM is active in the development and commercialization of a number of proprietary technologies in the fields of bioremediation/superoxygenation of water, gasification of solid waste, and soil remediation.