Proteus Environmental Inc. announces joint ventures.

CALGARY, ALBERTA--(BUSINESS WIRE)--Nov. 21, 1996--Proteus (Alberta Stock Exchange PEV.) Proteus Environmental Systems Inc. ("PESI"), wholly owned subsidiary of Proteus Environmental Inc., announced that it has signed a Letter of Understanding and two Memoranda of Understanding, which represent three distinct joint ventures to market, supply, install and operate its proprietary wastewater treatment technology.

Firstly, a Letter of Understanding has been signed with A.F. Theriault & Son Ltd. of Nova Scotia for the exclusive territories of Nova Scotia, New Brunswick, Newfoundland and Prince Edward Island in Canada as well as Louisiana, Maine, New Hampshire, Vermont and Massachusetts in the U.S.A. The structure of this relationship will be a joint venture company owned fifty percent (50 percent) by A.F. Theriault & Son Ltd. and fifty percent (50 percent) by PESI. The agreement has provisions for the payment of a license fee to PESI, which will be derived from the profits earned from the joint venture. In addition to typical domestic applications, a portable system will also be constructed to service marine applications.

Secondly, a Memorandum of Understanding has been signed with Rimcorp International Inc. of San Diego, California for the exclusive territory of the Country of Peru. The structure of this relationship will be a joint venture company owned fifty percent (50 percent) by Rimcorp International Inc. and fifty percent (50 percent) by PESI. PESI will waive the license fee to the joint venture upon the delivery of a project in this territory. To this end, three contracts have been granted and are currently undergoing due diligence. The Memorandum of Understanding also allows for the joint venture to gain additional exclusive territories in South America by meeting performance criteria.

Thirdly, a Memorandum of Understanding has been signed with Rimcorp International Inc. of San Diego, California and de la Cruz & Associates of Portland, Oregon (Rimcorp/de la Cruz) for the exclusive territories of Washington, Oregon, Idaho, California, Nevada, Arizona, Utah and Colorado in the U.S.A. as well as American Samoa, Wake Island, Guam, Northern Mariana Islands, Aleutian Islands, Virgin Islands, Puerto Rico, Johnston Atoll, Jarvis Island and Palmyra Atoll in the U.S. Territories. The structure of this relationship will be a joint venture company owned fifty percent (50 percent) by Rimcorp/de la Cruz and fifty percent (50 percent) by PESI. PESI will waive the technology license fee to the joint venture company upon delivery of a project that achieves regulatory approval for the technology in the controlling jurisdiction. Such a project has already been identified. Technical information with respect to the project will be submitted to the appropriate regulatory authority within 45 days.

Proteus Environmental Inc., through PESI, manufactures the Modular Effluent Treatment System or "METS" which provides an economical, efficient and fully integrated means of treating raw sewage and industrial waste - at the source - to a level where they are safe for discharge. It is expected that the market reach of Proteus Environmental Inc. will be greatly expanded by the above joint ventures and will better enable it to compete in the international market place.

The common shares of Proteus Environmental Inc. are listed on The Alberta Stock Exchange under the trading symbol "PEV". It is currently working to comply with the listing requirements of The Alberta Stock Exchange in order that its common shares may be reinstated for trading. -0- The Alberta Stock Exchange has neither approved nor disapproved information contained herein.

CONTACT: Proteus Environmental Inc.

Dr. David Manz, 403/543-2399