FOR IMMEDIATE RELEASE

TIREX DIVESTS OUT OF THE RUBBER FLOOR MAT BUSINESS TO CONCENTRATE ON TCS-1 PLANT IMPROVEMENTS AND DEVELOPMENT OF ADVANCED, PROPRIETARY RUBBER-THERMOPLASTIC COMPOUNDS

 MONTREAL, CANADA, September 7, 1999 The Tirex Corporation (the "Company") is in final negotiations with International Merchandising and Manufacturing Inc. (IM²) to sell to IM² the equipment and work in progress of Tirexs 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 Companys proprietary rubber-thermoplastic family of compounds, RuCrTherm^TM.

According to Tirexs 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 Tirexs patented TCS-1 plant) into high margin, value added applications.