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VIROGROUP ANNOUNCES 'STRATEGIC PARTNERSHIP' WITH LAIDLAW ENVIRONMENTAL SERVICES; ISSUES $8.0 MILLION NEW CONVERTIBLE PREFERRED STOCK

 CAPE CORAL, Fla., Jan. 22 /PRNewswire/ -- At its first annual meeting of shareholders today, ViroGroup, Inc. (NASDAQ: VIRO), announced that it has reached an agreement in principle with Laidlaw Environmental Services, a business operation of Laidlaw Inc. (NYSE: LDW), for a strategic partnership, according to Robert A. Fletcher, chairman and chief executive officer of ViroGroup. Under the terms of the agreement, ViroGroup will acquire Laidlaw's Environics environmental engineering business and receive a capital infusion of $2.0 million of cash, to be earmarked for further strategic opportunistic acquisitions. In exchange, ViroGroup will issue $8.0 million of a new convertible 7 percent preferred stock to Laidlaw.
 "We are very pleased with this major partnering step with Laidlaw, our largest customer," the ViroGroup chairman said. "We regard this opportunity as a strong indicator of the confidence that Laidlaw places in our services and our long-range prospects. We anticipate working more closely with Laidlaw on a broader range of environmental projects," Fletcher added.
 "The transaction will involve a new issue of $8,000,000 of convertible 7 percent preferred stock. Laidlaw will have the option to convert its preferred stock to common at $10 per share during the first year, with the conversion price escalating at a rate of 5 percent annually in each subsequent year," Fletcher said. "In addition, Laidlaw receives certain purchase rights to maintain a 20-percent ownership, and will be entitled to two seats on ViroGroup's board of directors. That will bring the total membership of our board up to 11," he added. The transaction is subject to reaching a definitive agreement.
 "Environics provides environmental engineering and consulting services from its base in Nashville, Tenn.," Fletcher said, "an operation complementary to that of ViroGroup. Environics' projected revenues for the current year are $7.0 million, which under the terms of the agreement represents a cost less than one times sales."
 Ontario-based Laidlaw is North America's third-largest solid-waste management company, second-largest hazardous-waste management company and largest school bus operator. 1992 revenues exceeded $US1.9 billion. Laidlaw is ViroGroup's largest customer, accounting for approximately 23 percent of the latest fiscal quarterly revenues.
 ViroGroup provides a full range of environmental, hydrogeological and solid- and hazardous-waste management services nationwide to correct and improve air, water and soil quality. Most of the company's revenues are derived from the assessment and remediation of groundwater and soil contaminants and the design, permitting, construction management and compliance monitoring of solid- and hazardous-waste management facilities.
 -0- 1/22/93
 /CONTACT: Robert A. Fletcher, chairman and CEO of ViroGroup, 813-574-1919/
 (VIRO LDW)


CO: ViroGroup, Inc.; Laidlaw Inc. ST: Florida, Tennessee, Ontario IN: SU:

GK-AH -- NY018 -- 7851 01/22/93 10:48 EST
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Date:Jan 22, 1993
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