KBF Pollution (fka KBFP)

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KBF Reports 25% Increase in Recycling Service Revenue in 2001
PATERSON, N.J., Apr 3, 2002 /PRNewswire-FirstCall via COMTEX/ -- KBF Pollution Management, Inc. (OTC Bulletin Board: KBFP) ("KBF") yesterday reported a 25% increase in recycling service revenue in 2001 with recycling service revenues of $3,164,005, up from $2,527,394 in 2000. KBF also posted a dramatic 109% increase in earnings before interest, taxes, depreciation and amortization, with EBITDA of $113,690 in 2001, as compared to EBITDA of $(1,246,318) in 2000.

The 2001 results demonstrate the continuation of KBF's long-term upward trend in performance. Providing guidance on this trend, Kevin Kreisler, KBF's president, said that, "our focus on the large-scale application of our patented technologies -- KBF's core competency -- continues to generate potent results. We are very pleased with our increased recycling service revenues and dramatically improved earnings in 2001 and we expect the momentum of improving performance to continue in 2002. We expect continued strong demand in our core markets as our sales initiatives continue to produce positive results, and as we continue to invest in process infrastructure in response to anticipated increases in contract demand."

KBF's 10-KSB for 2001, filed April 1, 2002, additionally disclosed that total revenues for the year ended December 31, 2001 were $3,278,592 as compared to $3,163,307 for the same period in 2000, corresponding to an increase of 3.65%. This modest growth rate in total revenues, as compared to the more significant growth rate of the first six months of 2001, is predominately due to KBF's increased focus on recycling (facility-based) services as opposed to field services, which have substantially lower profit margins. Field service revenue decreased to $114,587 in 2001 from $635,913 in 2000, and gross profit for 2001 increased by more than 15% over 2000. The company incurred a net loss of $(276,752) during 2001, an 81% improvement from the net loss of $(1,575,683) in 2000. This improvement is largely attributable to the increased revenues and decreased costs described above. KBF decreased its costs of operations for the year ended December 31, 2001 to 77% of revenues from 90% of revenues in 2000. General and administrative expenses decreased by 49% to $773,554 in 2001, from $1,525,309 for 2000. The decrease in general and administrative expenses is primarily due to decreased labor costs associated with KBF's development of a more efficient information system, the deferral of certain salaries and significantly decreased professional fees. General and administrative costs are expected to increase in future periods with the reinstatement of certain salaries and anticipated new hires. KBF's 10-KSB for 2001 is available online at http://www.kbf-pmi.com .

About KBF Pollution Management, Inc.

KBF is a growth-stage company that is establishing 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 that exists today. 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 site called TSDonline.com(TM).

Safe Harbor Statement

The foregoing discussion contains forward-looking statements that are based on current expectations. Actual results, including the timing and amount of anticipated revenues, may differ due to such factors as: regulatory delays; dealings with governmental and foreign entities; economic and other conditions affecting the financial ability of actual and prospective clients; and, other risks generally affecting the financing of projects. Additional risks associated with KBF's business can be found in its Annual Report on Form 10-KSB for the year ended December 31, 2001, 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,

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