FOR IMMEDIATE RELEASE:

July 7, 2003

Baltimore Dredges, LLC (Ellicott) and Liquid Waste Technology, Inc.  Acquired

Baltimore Dredges, LLC and Liquid Waste Technology (LWT) have been acquired by a new company, Baltimore Dredge Enterprises, LLC (BDE) funded by Urban Growth Partners (UGP) for that purpose.  UGP, a Philadelphia-based venture capital firm, has made a multi-million dollar investment into BDE in association with the acquisition, and to finance working capital and future acquisitions by BDE.

Each subsidiary will operate independently of the other, retaining all current management and all employees.

Marty Barnes, formerly President of LWT, has been named Chief Operating Officer of BDE.  Jim Pflueger will remain as Vice President and General Manager of LWT; Charles Albert will remain as Director of Operations of Baltimore Dredges, which will be changing its name to Ellicott Dredges, LLC.  Peter Bowe, Chairman of LWT, will be joining the BDE board.

Gamal Elsaeed, the Chairman of Baltimore Dredges, and the newly elected Chairman of BDE, expressed enthusiasm for the new investment: 

"With the additional financial resources we will be hiring new staff at all of our locations, and adding dredges to our lease fleet.  We clearly are the leading U.S. player in the dredge manufacturing industry.  An analogy for our strategy is the multi-brand car dealer – we will have a product and an organization to suit all customers.  We will be continuing to offer Ellicott™, Mud Cat™, LWT Pit Hog™, IMS, and United Marine International brand products, each backed by a separate sales and engineering organization to serve their respective market niches."

Joe Killackey, a UGP partner and a new Director of BDE, said, "This is an ideal investment for our Fund – growth financing for a leading company in some unique and growing markets.  We plan to work with BDE to build the company to the dominant player in its markets."

In industry news, Ellicott Dredges noted that it sold Series 370 "Dragon" dredges to customers in three countries in June and will shortly be shipping its first SandMiner™ dredge to a unit of Lehigh Cement Company, a subsidiary of Heidelberg Cement of Germany.  

LWT has announced a substantial order for multiple fully automated dredges from International Paper (IP).  IP will use the dredges for secondary waste water treatment at a Florida Kraft pulp and paper mill operation.  Fortune magazine has just named IP, the world's largest paper and forest products company, as the most admired company worldwide in the paper industry.  LWT also said that it has just shipped its first Innovative Material Systems Versi-Dredge™, a Model 7012 equipped with the patented Starwheel™ self-propulsion system.  This delivery marks the first IMS dredge built by LWT since LWT acquired IMS's intellectual property in February of this year.  Finally, the Port of Houston has just commissioned a TrashCat™ trash skimmer from LWT's United Marine International Division.

For more information, 
See www.dredge.com re: Ellicott cutter dredge products
See www.lwtpithog.com re: LWT automated dredges
See www.imsdredge.com re: IMS self-propelled Versi-Dredges™
See www.trashskimmer.com re: UMI trash skimmers
See www.mudcat.com re: the original portable auger dredger

Or Contact:
Gamal Elsaeed, Chairman
Baltimore Dredge Enterprises, LLC
1651 Bush Street
Baltimore, MD 21230
Ph 410-545-0260
Fax 410-545-0200

Or email mlabarre@dredge.com