ZENON Completes $103.6 Million "Bought Deal" Financing

OAKVILLE, Ontario, June 8, 2004 – ZENON Environmental Inc. (ZEN – TSX, ZEN.A – TSX) today completed the sale of Common Shares announced on May 20, 2004 to the syndicate of underwriters led by GMP Securities Ltd., and including Canaccord Capital Corporation, First Associates Investments Inc. and RBC Dominion Securities Inc. The sale consisted of 4,555,000 Common Shares at a price of $22.75, for aggregate gross proceeds of $103,626,250.

The proceeds are expected to be used to finance ZENON’s growth opportunities and for general corporate purposes.

ZENON is a world leader in providing advanced membrane products and services for water purification, wastewater treatment and water reuse to municipalities and industries worldwide.

In 2004, ZENON Environmental was ranked as Canada's top Corporate Citizen by Corporate Knights, a business publication addressing corporate responsibility. This is the second time that ZENON has been selected to lead as Canada's top Corporate Citizen.

ZENON has also been selected as one of Canada's Top 100 Employers for the fifth consecutive year. An S&P/TSX Composite company, ZENON Environmental Inc. trades on the Toronto Stock Exchange under the symbols ZEN and ZEN.NV.A; and on the OTC under the symbols ZNEVF and ZNEAF. Additional information is available at the Company's web site www.ZENON.com.

The above release was issued today. For more information contact:

Ellen Mellody
GE Water & Process Technologies
215.942.3307