Company Press Release
Leah Industries Inc. Announces Environmental Cleanup Contract
TORONTO and SAN ANTONIO--(BUSINESS WIRE)--Nov. 4, 1998--Leah Industries Inc. (OTC BB:LEAH - news) today announced that its subsidiary, Fire Environmental Inc., has secured a contract with Ecoserve to perform environmental cleanup services for the city of Sumgayt, Azerbaijan.
Sumgayt is located approximately 65 miles west of Baku, the capital city of Azerbaijan. The scope of the project includes cleanup of a factory located in Sumgayt, and the surrounding area, of metal mercury contamination and the transportation to a designated burial site for hazardous waste. The total price budgeted for the cleanup is U.S. $8.1 Million. Work is to begin immediately on the project.
Birte Boock, CEO of Leah, commented, ''This is the first of many environmental cleanup projects that Fire Environmental Inc. expects from the region. Negotiations are pending for cleanup services in Azerbaijan and Kazakhstan relating to the oil industry. We are excited for the company and our shareholders to have taken this first step in what is expected to be a very lucrative venture.''
Leah Industries Inc. is also pleased to announce that the record date for the dividend of Leah's holdings in Fire Environmental Inc. is the close of business on Dec. 17, 1998, with distribution to take place Dec. 30, 1998. Leah will distribute these shares in the form of a stock dividend to Leah Shareholders at the rate of 1 share of Fire Environmental Inc. for every 2 shares of Leah Industries Inc. Common Stock. Requisite filings for the trading of Fire Environmental Inc. are in process and management expects the shares of Fire Environmental Inc. to trade between $3 and $4 per share.
Certain statements contained herein are ''forward-looking statements'' (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, the expected versus the actual level of cleanup services (how lucrative) realized in the future and the expected versus the actual trading range of Fire Environmental Inc. stock in the future.
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Contact:
Leah Industries Inc.
Birte Boock, 416/221-1642
or
Robert Barger, 210/375-1335
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