Union Pacific's Terranext Becomes an IndependentFirm -- Not Acquired by ERM.

DENVER--(BUSINESS WIRE)--Oct. 10, 1997--Terranext's management announced its acquisition of Terranext, a national environmental consulting and remediation firm headquartered in Denver, from the Union Pacific Railroad Company of Omaha, Neb., effective Aug. 31, 1997.

In a statement clarifying

the recent confusion surrounding an announcement by the Environmental Resources Management Group (ERM) that it had acquired the railroad consulting-business of Terranext, President and CEO John Spisak stated that, "Terranext was not acquired by ERM. Terranext remains a strong, independent and growing company that its management purchased from Union Pacific, following the transfer of Union Pacific's railroad environmental remediation work to ERM effective July 31, 1997."

Neither Terranext's stock nor its substantial and broad non-rail client base were part of the transaction. In fact, Union Pacific has contractually retained Terranext to assist it with a major municipal waste project in Southern California.

Terranext, founded as SP Environmental Systems under the Southern Pacific Railroad, served as SP's primary environmental consultant as well as providing services outside of the rail industry. According to John Larsen, Union Pacific Corp.'s assistant treasurer, Union Pacific, following the SP acquisition, decided that it would separate the railroad environmental work and sell Terranext to create an independent company to continue serving its clients in the non-rail community.

Larsen stated that, "We saw a win-win opportunity here for both the Union Pacific and the management of Terranext in this transaction."

Terranext (in no way affiliated with ERM), is a full service environmental engineering and remediation company providing services in air quality, water treatment, hazardous and solid waste management, risk assessment, geohydrology, three dimensional groundwater and subsurface modeling, engineering and emergency response.

Terranext is headquartered at 165 S. Union Blvd., Lakewood, CO, 80228 and can be reached at 303-914-1700. Its offices and operations are located in California, Colorado, Arizona, Kansas and Texas.

Source: Terranext Inc. HQ - 165 S. Union Blvd., Ste. 1000, Lakewood, CO 80228.

CONTACT: Terranext Inc., Lakewood

John F. Spisak, 303/914-1730