ADS Inc. Signs an Agreement in Principles to AcquireEAT Environment Inc. and Option...

QUEBEC CITY, Quebec--(BUSINESS WIRE)--Feb. 21, 1997--(ME AAL.A.) ADS Inc. ("ADS") announces that it has signed an agreement in principles through its subsidiary Texel Inc. (Texel), with Mrs Christiane Roy and Mr Jean-Pierre Dube, that would permit the acquisition of a holding of 75 percent in

EAT is a company in Montreal, specialized in wastewater treatment for small flows. Option is also a company in Montreal, specialized in the distribution of equipment for wastewater treatment. EAT and Option have a solid reputation in their environment and have been involved for several years in development of Texel's bio-reactor.

Texel, Ms. Christiane Roy and Mr. Jean-Pierre Dube have reached an agreement in principles on the deal, which nonetheless remains subject to certain conditions being met, notably the approval of their respective boards of directors and a due diligence audit.

If the deal is finalized, Ms. Christiane Roy and Mr. Jean-Pierre Dube will have a holding of 25 percent in the new company created to realize the acquisition of the companies EAT and Option, and will become respectively Vice-president Research and Development and Vice-president Engineering. This new company will be responsible for the development, assembly and distribution of Texel's bio-reactor.

ADS Inc. will keep the financial community informed of further developments as negotiations progress.

ADS Inc. is a company primarily involved in the manufacturing sector through subsidiaries operating in the field of technical textiles and composite materials. Company shares are quoted on the Montreal Exchange under the symbol AAL.A.

CONTACT: ADS inc.

Mr. Paul Drouin, 418/626-3383