Backlog grows in Dec 2005

Zenon obtains significant sales in December

OAKVILLE , Ontario , January 5, 2006 – Zenon Environmental Inc, announced that the company booked $38 million for large orders it received in the month of December.

In December, Zenon received purchase orders to supply the company’s new ZeeWeed 1000 version 3 membranes for three drinking water treatment plants. Among them is the Twin Oaks County project that the company announced earlier in October when Zenon was selected as the membrane supplier for the world’s largest ultrafiltration plant. With construction underway, the plant is expected to be complete in the first half of 2008.

The Sweetwater Authority in San Diego County plans to use Zenon's its latest generation product. Construction on this 30 million gallon a day plant will provide water to approximately 150,000 people when completed by the end of 2007. A community in Georgia has also ordered a new ZeeWeed 1000 version 3 membrane system that once completed, will have the capacity to supply potable water to approximately 60,000 people.

With the inclusion of these plants Zenon’s installed water treatment capacity will exceed 2 billion gallons per day all over the world.

Sales of the company’s ZeeWeed 500 series membranes also continue to do well. The 500 series membranes are Zenon’s strongest reinforced hollow fiber membranes with a track record of enduring performance in difficult-to-treat waters. Among the orders received in December for the 500 series is a membrane bioreactor that will treat 9 million gallons of wastewater per day for the North Kent Sewer Authority in Michigan ; a water recycling plant for Oak Valley , California ; and an industrial wastewater treatment plant in Indiana .

“As an industry leader, we continue to win new orders for our innovative technology,” said Andrew Benedek, Zenon Chairman and CEO. “In addition to our new order intake, growing backlog and strong financial base, we continue to strive for excellence in providing superior service to our clients. With this strong order intake in December, our backlog is expected to continue to grow at the 30% range seen in previous years,” added Mr. Benedek.