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RIEDEL ENVIRONMENTAL ANNOUNCES CONTINUED LIMITED FUNDING, OTHER DEVELOPMENTS

 PORTLAND, Ore., Jan. 12 /PRNewswire/ -- Riedel Environmental Technologies Inc. ("RET") (AMEX: RIE) today announced that it has reached agreement with its senior secured lender to receive a limited amount of financing through April 1, 1994. While Stanford Springel, interim president and chief executive officer of RET, was pleased with the new availability, he cautioned that "the bank is keeping us on a tight leash, insofar as the company must meet periodic performance benchmarks in order to remain within its financial covenants. We are appreciative, however, of our bank's support, and I expect that our operations can be stabilized with our renewed credit availability."
 Springel specifically expressed his appreciation for the support the company's trade creditors have provided during this period of financial difficulty and looked forward to their continued cooperation. He stated that "a few of our checks were returned for insufficient funds while we were working out our new loan arrangements and the new credit facility will allow us to issue replacement checks."
 RET also announced today that it has signed a definitive agreement to sell its OMNI Rubber subsidiary, with a closing scheduled for early-to-mid February. Springel expressed his disappointment that the agreed-upon consideration was considerably less than previously announced, but said, "I am pleased that we are proceeding with the sale of the OMNI subsidiary." Proceeds of the OMNI sale will go to pay down the company's senior secured lender.
 The company today also announced that while a significant strategic investor continues on-site due diligence with a view towards an investment in, or acquisition of, RET or its subsidiaries, the company is commencing a broad contact program with other potential investors. Springel noted that "we are delighted with the interest expressed by the potential investor, but the circumstances facing RET leave little choice but to contact other potentially interested parties in order to provide long-term financial stability for RET as soon as possible." Interested parties are encouraged to contact Peter Kaufman or Barbara Scholl at Gordian Group L.P., the company's New York-based financial advisors at 212-486-3600 in this regard.
 Springel also said that there was no guarantee that a transaction with a third party would materialize and noted that even if it did, existing debtholders and stockholders could be materially adversely affected. He further added, "I am looking forward to focusing my attention on the operations of RET, so that the company's business can be maintained while we restructure the company's balance sheet.
 -0- 1/12/94
 /CONTACT: Dave Rynd, senior vice president of Riedel Environmental, 503-286-4656/
 (RIE)


CO: Riedel Environmental Technologies Inc.; OMNI Rubber ST: Oregon IN: ENV SU: FNC

JH-RB -- SE001 -- 0973 01/12/94 12:45 EST
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Publication:PR Newswire
Date:Jan 12, 1994
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