Trojan Technologies to Acquire Majority Interest in US Peroxide

    LONDON, ON, Dec. 18 /PRNewswire-FirstCall/ - Trojan Technologies Inc.
 (TSX/TUV) announced today that it will acquire a 51% interest in US Peroxide,
 LLC of Laguna Niguel, California. The purchase of US Peroxide expands the
 range of integrated solutions Trojan provides for water and wastewater
 treatment and supports Trojan's strategy for revenue growth by building on new
 product solutions in existing markets.
     US Peroxide is the largest North American supplier of hydrogen peroxide
 (H2O2) for environmental service applications and also offers equipment and
 services related to the use and monitoring of hydrogen peroxide. Hydrogen
 peroxide is used for odor reduction and corrosion control in municipal
 wastewater treatment applications. Trojan uses hydrogen peroxide in its
 existing environmental contaminant treatment (ECT) solutions, which are
 designed to destroy chemicals found in contaminated water supplies.
     "US Peroxide's customer-focused strategy and product offering fits well
 with our company," stated Marvin DeVries, President and CEO of Trojan
 Technologies. "Our business is to deliver solutions that increases our
 customers' confidence in the quality of their water. This acquisition enhances
 our ability to do that by offering an integrated solution that complements our
 core offerings for water treatment. It also provides Trojan with an enhanced
 growth opportunity and a meaningful addition to our recurring annual revenue."
     The purchase price of the initial 51% interest will be US$5.2 million, to
 be paid in cash, subject to adjustment on completion of US Peroxide's audited
 financial statements for the year ending December 31, 2003. In 2007 and 2009,
 Trojan will purchase 34% and the remaining 15% interest, respectively,
 provided certain performance targets are achieved. The valuation of these
 subsequent purchases will be based on US Peroxide's performance. The initial
 purchase will close on January 5, 2004 subject to obtaining certain consents
 and normal conditions. The net impact on Trojan's financial performance is
 expected to be neutral to earnings in 2004 and accretive to earnings in 2005
     US Peroxide is well aligned with Trojan's existing markets
     Trojan's ECT products require the use of hydrogen peroxide in conjunction
 with UV to treat chemically contaminated water supplies, while simultaneously
 providing disinfection. This process, known as UV-Oxidation, has been utilized
 in approximately 90% of the ECT contracts won to date. With the integration of
 hydrogen peroxide equipment and its ongoing supply into current ECT product
 offerings, Trojan can now offer turnkey ECT solutions, which provide customers
 with the ongoing performance assurance. This bundled solution is expected to
 enhance market growth and further strengthen Trojan's market share position in
 the ECT market.
     The companies have been working together to develop advanced treatment
 solutions for both municipal drinking water and wastewater applications over
 the past year. This acquisition formalizes this working relationship. By
 offering municipal wastewater plants a joint UV and hydrogen peroxide
 solution, municipal wastewater customers will be able to replace the use of
 chlorine to solve odor and corrosion problems as well as meet disinfection
 requirements. The companies expect that this will result in increased sales of
 both UV and hydrogen peroxide solutions.
     US Peroxide's sales will be enhanced by leveraging Trojan's strong
     distribution network
     Trojan sells its municipal water treatment solutions through an
 established, global network of manufacturer's representatives. Through this
 channel, US Peroxide can grow its revenue by offering hydrogen peroxide
 solutions to an expanded market.
     Trojan's recurring annual revenue will increase
     US Peroxide's revenue stream includes the long-term supply of hydrogen
 peroxide to its customers. This revenue stream will continue to increase as
 the customer base increases. The acquisition will further increase Trojan's
 annual revenue from the supply of after-market-sales and service.
     "We are happy to join forces with Trojan," stated Scott Duggan, President
 and founder of US Peroxide. "Trojan's purchase of US Peroxide provides access
 to new distribution channels and resources that will enable us to reach our
 potential faster."
     About US Peroxide
     US Peroxide (, founded in 1997 in Laguna Niguel, California,
 is an environmental technology and full-service provider, providing cost-
 saving environmental solutions to both the municipal and industrial markets,
 and is the single largest North American direct supplier of hydrogen peroxide
 (H2O2) for environmental service applications. In addition to supplying
 hydrogen peroxide, the company sells equipment and services related to the use
 and monitoring of hydrogen peroxide, primarily at wastewater treatment plants.
 The company employs approximately 25 staff and is expected to generate annual
 revenue of approximately US$8.5 million in 2003.
     About Trojan Technologies
     Trojan Technologies ( designs, manufactures and sells UV
 systems for municipal wastewater and drinking water facilities, as well as for
 the industrial, commercial and residential markets. The company also provides
 UV treatment for the removal of certain chemicals from water.
     With over 3,500 municipal facilities in more than 25 countries using its
 technology, Trojan has the largest installed base of UV systems in the world.
 Headquartered in London, Ontario, Canada, the company also has offices in the
 U.K., Germany, Netherlands, Norway, Spain, and the U.S. Its shares are listed
 on The Toronto Stock Exchange under the trading symbol TUV.

SOURCE Trojan Technologies Inc.

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