KBF Pollution (fka KBFP)

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KBF Executes Seven Year $21 Million Recycling Services Agreement
PATERSON, N.J., Dec 12, 2001 /PRNewswire via COMTEX/ -- KBF Pollution Management, Inc. (OTC Bulletin Board: KBFP) ("KBF") today reported its execution of a seven year recycling services pact valued in excess of $21,000,000 with a domestic distributor of industrial by-products.

Under the terms of the agreement KBF will provide an array of recycling services, worth an estimated $3,000,000 annually, at KBF's proprietary Recycling and Commodity Manufacturing Center in Paterson, New Jersey. The agreement provides for the distribution of various industrial by-products to KBF for recycling with KBF's patented recycling technologies and the sale of any products recovered by KBF. The agreement requires that the identity of the distributor remain confidential for competitive reasons.

Kevin Kreisler, KBF's President, stated that, "the anticipated doubling of our current annual volume is clearly a positive material development and underscores an impressive year in which we have made several significant strides in our continuing development. The recycling we will perform under this agreement falls squarely within our core competencies and, due to the high process efficiency of our technologies, we expect the gross profit on the anticipated additional revenue under the agreement to be somewhat greater than 30%."

Full-scale production as contemplated by the agreement is expected to begin in the 2nd Quarter 2002. Revenues realized under this new agreement will be partially dependent upon fluctuations in certain relevant commodity valuations. Based on the targeted volumes to be distributed to KBF under the agreement, and KBF's experience with commodity manufacturing and distribution, the agreement is estimated to range in annual value from $2,250,000 at the minimum anticipated levels of production, to $4,750,000 at full production. The agreement also includes provisions for additional increases in production with further development of KBF's recycling infrastructure.

Looking ahead, Mr. Kreisler added that, "we expect that this agreement will not be an isolated event as continued increases in contract demand are expected in the near term. We expect to see strong demand and growth in our core markets as our penetration continues to increase into the significantly larger levels of producer output. Our earnings have increased dramatically on increased recycling service sales for the year to date -- a trend we expect to continue for the balance of the year."

KBF's 10-QSB for the third quarter 2001 disclosed that KBF's recycling service revenues for the nine months ended September 30, 2001 increased 20% to $2,258,349 from $1,884,202 for the same period last year, and earnings before interest, taxes, depreciation and amortization increased to $365,614 from $(803,637) for the same period last year. Gross profit for the nine months ended September 30, 2001 increased by a dramatic 536% to $539,625 from $100,676 from the nine months ended September 30, 2000. The increase in KBF's gross profit was reported to be due to the favorable economies of scale associated with KBF's increased volume and increased reliance on KBF's core technological capabilities.

About KBF Pollution Management, Inc.

KBF is a growth-stage company that is working to establish itself as the premier recycling services provider in the nation. KBF's Paterson, New Jersey flagship recycling and commodity manufacturing center has been designed for the large-scale application of KBF's Selective Separation Technology(TM) ("SST(TM)") (U.S. Pat. Nos.: 5,753,125; 5,908,559; 6,254,782) and other patent-pending and proprietary resource recovery technologies. These process technologies separate, remove and recover a wide range of metals from liquid and solid wastes as well as other production and manufacturing media. Use of SST(TM) and its related processes enables KBF to competitively recycle a much broader array of hazardous and non-hazardous waste than any other recycling service provider known to KBF. Wastes managed with KBF's technologies become products that are comparable and superior to the quality of virgin ore material extracted from the ground. Use of KBF's technologies eliminates the federally mandated 'cradle-to-grave' liability for which a waste generator would otherwise remain perpetually liable. KBF's technologies apply to manufacturing, industrial and municipal waste processes that contain metals or otherwise produce a metal bearing waste by-product. KBF also provides regulatory compliance support services to its customers and is developing an environmental services business-to-business website, TSDonline.com(TM).

Safe Harbor Statement

The foregoing discussion contains forward-looking statements that are based on current expectations, and includes statements regarding KBF's expectations, beliefs, intentions, or strategies regarding the future. Actual results, including the timing and amount of anticipated revenues, may differ due to such factors as: the performance of our customers; commodities valuation, regulatory delays; dealings with governmental entities; economic and other conditions affecting the financial ability of actual and prospective clients; and, other risks generally affecting the timing and financing of projects, as well as other factors. These and other risks associated with KBF's business can be found in its Annual Report on Form 10-KSB for the year ended December 31, 2000, and other periodic filings with the SEC. KBF Pollution Management, Inc. trades on the over the counter bulletin board maintained by the NASD under the symbol "KBFP."



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SOURCE KBF Pollution Management, Inc.


CONTACT: Joseph B. Schmidt of KBF Pollution Management, Inc.,

[phone], fax, [phone], or [e-mail]

URL: http://www.kbf-pmi.com
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