Philip Vertically Integrates its Copper Processing Business with the Acquisition of Conversion Resources and Warrenton Resources.

TORONTO--(BUSINESS WIRE)--Feb. 11, 1997-- Philip Environmental(NYSE PEV, TSE, ME PEN ) Philip Environmental ('Philip') announced today that it has agreed to acquire Conversion Resources Inc. ('Conversion Resources') of Cleveland, Ohio and Warrenton Resources Inc. ('Warrenton') of Warrenton, Missouri. Conversion Resources is a processor of non-ferrous metals and specializes in the management of resource recovery programs for industrial clients. Warrenton refines copper scrap into copper ingots and other customer specific shapes. Annual revenue from these operations is over US$100 million. Closing of the transaction is expected to occur on or before February 14, 1997.

Conversion Resources separates copper, brass and aluminum from contaminants, processes and markets these non-ferrous metals to tube mills, brass mills, foundries, specialty consumers and copper refineries. At the Warrenton refinery, copper scrap is processed into prime copper ingots and wirebars. Warrenton is the sole manufacturer of fire-refined copper ingot in North America.

"Philip is already one of the largest processors of copper scrap in North America" said Robert Waxman, President of Philip's Metals Recovery Group. "This acquisition enables us to refine copper scrap into prime copper ingots and is integral to our vertical integration in the copper industry. We now have the internal capability to convert copper scrap into prime metal to satisfy existing contracts and enter new markets. We will consolidate certain of our non-ferrous metals recovery businesses in the United States under the direction of the respected management of Conversion Resources, who will be joining Philip as part of this transaction."

"The merging of our businesses will provide our clients with state of the art technologies to process and refine non-ferrous metals and add value to their industrial by-products" said Ralph Razinger, President of Conversion Resources. "In addition, Philip's financial strength will enable us to accelerate the expansion of our Warrenton refinery. We are excited about joining the Philip team."

Philip Closes Acquisition of RMF Global

Philip also announced it has closed the acquisition of RMF Global, Inc. ('RMF') of Toledo, Ohio. RMF provides industrial maintenance and mechanical services, remediation, cleaning and abatement services and generates revenue in excess of US$62 million annually.

Philip Environmental is a fully integrated resource recovery and industrial services company, providing metals processing and mill services, solid and liquid industrial by-products recovery and on-site industrial and remediation services to all major industry sectors. The Company is traded on the New York Stock Exchange under the symbol 'PEV' and on the Toronto and Montreal Stock Exchanges under the symbol 'PEN'.

CONTACT: Philip Environmental Inc.

Robert Waxman, 905/ 521-1600