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[PHILIP ENVIRONMENTAL LOGO]                                     [ALLWASTE LOGO]

             Philip Environmental Inc. and Allwaste, Inc. To Merge

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   To Create North America's Largest Integrated Industrial Services Company

(Hamilton, ON and Houston, TX) March 6, 1997 Philip Environmental Inc. ("Philip
Environmental") (NYSE: PEV; TSE, ME: PEN) and Allwaste, Inc. (Allwaste")
(NYSE: ALW) jointly announced today that they have signed a definitive
agreement to merge the two companies to create the largest integrated resource
recovery and industrial services company in North America. The combined company
will have annualized revenue in excess of US $1.6 billion, approximately 8,000
employees and 215 operating locations throughout North America, and in Western
Europe and South America.

Under the terms of the agreement, each share of Allwaste stock will be
exchanged for 0.611 shares of Philip Environmental based on a fixed exchange
ratio. Based on the closing price of Philip stock on March 5, 1997, the
transaction values Allwaste at US$540 million including the assumption of an
estimated US$113 million in debt. The transaction is expected to close in June
1997, and is subject to, among other things, U.S. and Canadian regulatory
approval and shareholder approval of both companies.

This combination brings together complementary operational strengths and
creates a portfolio of services to respond to the growing trends for
outsourcing and supplier reduction in the industrial marketplace. The
combination is expected to result in significant operational synergies for the
combined company and is  expected to be accretive to earnings in the first year
following the consummation of the transaction. The industrial services market
is estimated by industry sources as approaching US$50 billion. It has emerged
from the traditional environmental services sector to respond to the needs of
large industrial companies which are under pressure to operate in the most cost
competitive and efficient manner. This has led to increased outsourcing
of services that are non-revenue producing, but essential to companies whose
primary source of revenue is a manufactured or processed product.

The newly combined company will organize into two major operating divisions:
Metals Recovery and Industrial Services. The Industrial Services division will
be comprised of the operations of Allwaste and Philip's existing By-Products
Recovery and Environmental Services Groups. The Metals Recovery division will
encompass all of Philip's steel, copper and aluminum processing and mill
services activities. An integration team comprised of key management from both
companies has been formed to steer the integration process.

"With this transaction, we create a company that will be a powerful force in
providing a broad range of industrial and resource recovery services," said
Allen Fracassi, President and Chief Executive Officer of Philip Environmental.
"Allwaste significantly expands our industrial service capabilities and offers
a strong infrastructure. Its 130 locations can collect materials which can be
forwarded to our network of metals and by-products processing and recovery
operations. This is a classic opportunity for two companies with limited
overlap of customers and an array of complementary services and specialized
industry focus to combine forces.
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PHILIP ENVIRONMENTAL AND ALLWASTE AGREE TO MERGE
March 6, 1997
Page 2

Together, we will exploit our strengths in serving industrial companies that
recognize the value of third-party solutions to their non-revenue producing
activities.

"Our companies share the same vision, business strategy and corporate culture,"
continued Mr. Fracassi. "These multiple synergies will result in a strong
management team with shared values and broader professional opportunities for
all our employees. We will be the major consolidator in the largely fragmented
industrial services sector."

Commenting on the merger, Robert Chiste, President and Chief Executive Officer
of Allwaste, stated, "Our companies are a perfect fit. I whole heartedly share
Philip's vision of establishing a new standard in the delivery of industrial
services to America's industrial companies. There are powerful synergies in
combining our respective core competencies, markets and geographic strengths.
Allwaste's strength in industrial services and transportation is supported by
Philip's technology leadership and operating strength in the recovery and
reuse of industrial by-products. Together we will be the premier full-service
provider to virtually all major industry sectors throughout North America,
which is in line with the objective we have set under our Target 2000 strategic
plan. We view this as a definitive value-adding event for both companies'
stockholders."

Philip is a fully integrated resource recovery and industrial services company
providing metals processing and mill services, solid and liquid by-products
recovery and industrial and remediation services to all major industry sectors.

Allwaste is a Houston-based, diversified industrial resource and services
company with 130 locations throughout the United States, Canada and Mexico. Its
ALLIES(R) (ALLwaste's Integrated Environmental Services) Program is designed to
provide industrial customers the opportunity to outsource their critical
support functions.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Allen Fracassi                              Robert Chiste
President & Chief Executive Officer         President & Chief Executive Officer
Philip Environmental Inc.                   Allwaste, Inc.
For 3/6/97: (212) 688-6840 ext.290          For 3/6/97: (212) 688-6840 ext 218
Thereafter: (905) 521-1600                  Thereafter: (713) 625-7047        

MEDIA                           
In the USA                                  In Canada
Marissa Moretti                             Richard Wertheim
Senior Vice President                       President
Dewe Rogerson, Inc.                         Wertheim Company
(212) 688-6840 ext. 227                     (416) 594-1600



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