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Tirex Divest Out of Floor Mats to Concentrate On Plant Improvements

8 September 1999

Tirex Divest Out of the Rubber Floor Mat Business to Concentrate On TCS-1 Plant Improvements and Development of Advanced, Proprietary Rubber-Thermoplastic Compounds

    MONTREAL--Sept. 7, 1999--The Tirex Corporation (the "Company") (OTC BB:TXMC) is in final negotiations with International Merchandising and Manufacturing Inc. (IM2) to sell to IM2 the equipment and work in progress of Tirex's molded floor mat business.
    The Company expects to enter into a contract with IM2 to supply Tirex produced Rutex(TM) the rubber crumb, for production of rubber welcome mats manufactured by IM2. IM2 will sublet 40,000 sq.ft. at the Tirex facility to continue producing rubber molded welcome mats. IM2 anticipates using a minimum of 8 million lbs. of rubber crumb over the next 24 months.
    The Company recently decided to sell its mat making operations to IM2, so it may more fully concentrate on completing needed improvements to its proprietary TCS-1 tire recycling system and continue its development of RuCrTherm(TM) advanced, proprietary rubber thermoplastic compounds.
    The proceeds of the sale of the mat business will be utilized to expedite the improvements to the TCS-1 plant and the advancement of the Company's proprietary rubber-thermoplastic family of compounds, RuCrTherm(TM).
    According to Tirex's Chief Executive Officer, Terence C. Byrne, the result of the sale of the rubber mat business allows the Company to focus exclusively on its prime business, the advancement of the TCS-1 plant and implementing Rutex(TM) (recycled crumb rubber produced by Tirex's patented TCS-1 plant) into high margin, value added applications.