Kafus Appoints Enron Representative to Board ofDirectors.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 23, 1999--Kafus Environmental Industries Ltd. (AMEX:KS) is pleased to announce the appointment of Mr. Tony Valentine to the Company's board of directors.

Mr. Valentine joined Enron Capital & Trade Resources Corp. (ECT) in Houston, as a

director of the Finance Group in July 1995 and has been a Vice President of ECT's Industrial Services Group since 1997. From 1993 to 1995 Mr. Valentine was a Vice President of General Electric Capital Services and from 1989 through 1993, was an associate with Chase Manhattan Bank in New York. Mr. Valentine was a Chemical Engineer with Shell Oil Company in New Orleans from 1984 through 1987.

Tony Valentine received a Bachelor of Science Degree in Chemical Engineering from the University of Tennessee and an MBA from Harvard Business School.

With his background and experience in corporate finance and industrial services, Tony Valentine brings additional resources to the Company's board of directors.

Kafus is rapidly moving towards its corporate objective of becoming a global low-cost producer of commodity type products from alternative materials including consumer agricultural waste.

The foregoing contains forward-looking statements which are subject to contingencies and uncertainties. Such forward-looking statements are not guarantees of future performance, and are based on numerous assumptions about future conditions that could prove to be inaccurate. Actual events, transactions and results may differ materially from anticipated events, transactions or results described in such statements. Material uncertainties about the future of the company exist. There can be no assurance that funding will be obtained for the proposed facilities, or that they will be constructed or operated as contemplated, or that the market for the products of any facilities will be as assumed. Kafus is subject to a number of risks and uncertainties which are set forth in its filing with the Securities and Exchange Commission.