December 18, 2003

News Release: Trojan Technologies to Acquire Majority Interest in US Peroxide

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 (www.H2O2.com), 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 (www.trojanuv.com) 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.

Diana Cunningham, Manager, Corporate Communications and Investor Relations, Trojan Technologies Inc., Tel: (519) 457-3400, www.trojanuv.com



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