Citadel Announces Acquisition of CO COMP Inc.

Jan 24, 2000, 00:00 ET from Citadel Environmental Group, Inc.

    DENVER, Jan. 24 /PRNewswire/ -- CITADEL ENVIRONMENTAL GROUP, INC.
 (OTC Bulletin Board:   CTEV) announced today the acquisition of 100% of the
 outstanding shares of CO COMP Inc., a Colorado-based data storage solutions
 provider.  The acquisition was made on January 21, 2000 for a combination of
 cash and Citadel preferred shares.
     In 1999, CO COMP Inc. produced annual gross revenues of approximately
 $9,000,000 on sales of data storage systems and services to commercial clients
 in the western United States.  Utilizing various hardware and software
 products and manufacturers, CO COMP Inc. designs and implements data storage
 solutions and provides long-term data storage administration and management
 servicing.  CO COMP Inc. has offices in Phoenix, AZ, and Dallas, TX, with
 Colorado locations in Boulder, Fort Collins, and Colorado Springs.  The
 business will operate as a wholly owned subsidiary of Citadel under the name
 of STORAGE AREA NETWORKS (SAN), the Company's primary asset focusing on data
 storage solutions for a variety of expanding market segments, including
 "Dot.com" companies, Internet Service Providers, and the U.S. federal
 government.
     CO COMP Inc. principals Keith Shields and Steve Davis will join the
 management team of SAN working under SAN co-founder and Citadel Chief
 Executive Officer, L.W. "Buck" Buxton.  According to Mr. Buxton, "the
 acquisition of CO COMP Inc. and its established data storage customer accounts
 is strategically important to SAN because it increases our technical service
 capabilities while bringing important new commercial customers from a
 diversified geographic area.  With the addition of CO COMP, Inc., SAN has a
 balanced business framework to effectively exploit both government and
 commercial data storage opportunities on a national level.  This acquisition
 provides valuable synergies that we believe will enhance the operations of SAN
 with the goal of increasing shareholder value over the long term.  Citadel
 plans to complete similar acquisitions in the future, to provide Storage Area
 Networks with the necessary momentum and expanded infrastructure to meet the
 exploding demands for data storage capacity in the marketplace."
     Citadel Environmental Group, Inc. (OTC Bulletin Board:   CTEV) is a public
 holding company based in Castle Rock, CO.  At the next meeting of shareholders
 later this year, Citadel plans to change its name to "SAN HOLDINGS INC." to
 reflect the new business and direction of the Company.  The lead market maker
 for the Company's securities is Spencer-Edwards, Inc. of Englewood, Colorado.
 For more information, please contact Mr. Jerry Kirby at SEI: (303) 740-8448.
 
 

SOURCE Citadel Environmental Group, Inc.
    DENVER, Jan. 24 /PRNewswire/ -- CITADEL ENVIRONMENTAL GROUP, INC.
 (OTC Bulletin Board:   CTEV) announced today the acquisition of 100% of the
 outstanding shares of CO COMP Inc., a Colorado-based data storage solutions
 provider.  The acquisition was made on January 21, 2000 for a combination of
 cash and Citadel preferred shares.
     In 1999, CO COMP Inc. produced annual gross revenues of approximately
 $9,000,000 on sales of data storage systems and services to commercial clients
 in the western United States.  Utilizing various hardware and software
 products and manufacturers, CO COMP Inc. designs and implements data storage
 solutions and provides long-term data storage administration and management
 servicing.  CO COMP Inc. has offices in Phoenix, AZ, and Dallas, TX, with
 Colorado locations in Boulder, Fort Collins, and Colorado Springs.  The
 business will operate as a wholly owned subsidiary of Citadel under the name
 of STORAGE AREA NETWORKS (SAN), the Company's primary asset focusing on data
 storage solutions for a variety of expanding market segments, including
 "Dot.com" companies, Internet Service Providers, and the U.S. federal
 government.
     CO COMP Inc. principals Keith Shields and Steve Davis will join the
 management team of SAN working under SAN co-founder and Citadel Chief
 Executive Officer, L.W. "Buck" Buxton.  According to Mr. Buxton, "the
 acquisition of CO COMP Inc. and its established data storage customer accounts
 is strategically important to SAN because it increases our technical service
 capabilities while bringing important new commercial customers from a
 diversified geographic area.  With the addition of CO COMP, Inc., SAN has a
 balanced business framework to effectively exploit both government and
 commercial data storage opportunities on a national level.  This acquisition
 provides valuable synergies that we believe will enhance the operations of SAN
 with the goal of increasing shareholder value over the long term.  Citadel
 plans to complete similar acquisitions in the future, to provide Storage Area
 Networks with the necessary momentum and expanded infrastructure to meet the
 exploding demands for data storage capacity in the marketplace."
     Citadel Environmental Group, Inc. (OTC Bulletin Board:   CTEV) is a public
 holding company based in Castle Rock, CO.  At the next meeting of shareholders
 later this year, Citadel plans to change its name to "SAN HOLDINGS INC." to
 reflect the new business and direction of the Company.  The lead market maker
 for the Company's securities is Spencer-Edwards, Inc. of Englewood, Colorado.
 For more information, please contact Mr. Jerry Kirby at SEI: (303) 740-8448.
 
 SOURCE  Citadel Environmental Group, Inc.