KBF Pollution (fka KBFP)

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PATERSON, N.J., Aug 19, 2002 /PRNewswire-FirstCall via COMTEX/ -- KBF Pollution Management, Inc. (OTC Bulletin Board: KBFP) ("KBF") reported a 21% increase in revenue for the six months ended June 30, 2002, with recycling service revenues of $1,752,970 as compared to $1,441,046 for the same period in 2001. The increase in revenues is attributable to increased contract demand from KBF's recent sales activities and the continued expansion of KBF's state of the art Recycling and Commodity Manufacturing center. KBF realized this increase in revenue despite the generation of historically low volumes of hazardous waste industry-wide in the first six months of the year.

Kevin Kreisler, KBF's president, said that "we are pleased that we have been able to increase our revenue and contract demand in spite of the attrition during the latter portion of the first quarter and throughout the second quarter 2002. KBF's continued growth in light of these market conditions reflects the continued strength of our upward growth trend, and we are confident that we will continue to increase revenue in our core markets as our existing customers increase their production and as we continue to increase market penetration. We have recently initiated service for many new generators, and our third quarter revenues are already on track to surpass our second quarter revenues by at least 30%."

These increases in revenue are expected to be enhanced further as KBF brings new recycling and mining processes on-line at its New Jersey based Recycling and Commodity Manufacturing Center that both expand the scope of KBF's process capabilities and increase the value of KBF's metal products. One such new process is scheduled to commence performance testing this month. Another process, slated to commence operations in September 2002, is a new refining operation that will increase the inherent value of KBF's existing products by refining them into higher grade commodities.

"We are excited by the possibilities that these new processes will afford us moving forward. Not only do we expect increased earnings on increased revenue as we initiate operations with these new processes, but we will also increase our ability to mine commodities from a broader array of industrial hazardous wastes. The metallic commodities that we mine from these industrial ores will represent a significant source of accretive revenue and earnings growth for KBF, particularly as we increase our production beyond current levels, and as we continue to integrate still more production capabilities engineered to increase the value of our metal products," added Kreisler.

KBF's 10-QSB for the second quarter 2001, filed today, additionally disclosed that revenues for the three months ended June 30, 2001 increased to $842,394 from $814,728 for the same period last year, with a decrease in earnings before interest, taxes, depreciation and amortization to $(250,618) from $106,380 for the same period last year. This decrease in earnings, as compared to the positive growth rate in earnings demonstrated throughout 2001, is predominately due to the increased costs of operations associated with the Company's recently expanded process capacity, which was developed in response to the Company's increased sales and the higher production levels of hazardous waste industry-wide in the latter portion of 2001 as well as the early portion of the first quarter 2002. Volume decreased during the latter portion of the first quarter and most of the second quarter 2002 due to the generation of historically low volumes of hazardous waste industry-wide. While hazardous waste production has returned to expected levels as of the end of the second quarter 2002, the Company's cost of operations for the three months ended June 30, 2002 had increased to 93% of revenues from 74% of revenues for the same period in 2001. As a result of these increased costs and the temporary industry-wide decline in the production of hazardous wastes, the Company incurred a net loss of $(406,992) for the three months ended June 30, 2002, as compared to the net income of $12,686 for the same period in 2001. KBF's 10-Q for the three months ended June 30, 2002, is available online at www.kbf-pmi.com and includes updates on ongoing significant developments, including KBF's planned acquisition of the environmental services division of R.M. Jones & Co., Inc.

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.

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, Inc.,

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