NEWS RELEASE
     American Eco Corporation Suite 200, 154 University Avenue, Toronto,
     Ontario, Canada M5H 3Y9
     [NASDAQ SYMBOL: ECGOF / TSE SYMBOL: ECX / CBOE SYMBOL: EOQ]

     For Immediate Release
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                                 AMERICAN ECO PLACES
                            $120.0 MILLION IN SENIOR NOTES


     TORONTO, Ontario, Canada,  Thursday, May  21, 1998 -  MICHAEL E.  MCGINNIS,
     CHAIRMAN, PRESIDENT &  CEO of AMERICAN ECO CORPORATION announced completion
     of a placement of US$120.0 million 9.625%  Senior Notes that will be due in
     2008.  American Eco intends to use the proceeds from the  sale of the Notes
     for repayment of  US$71.2 million of  debt, with the  remainder of the  net
     proceeds  to  be  used  for  potential  acquisitions  and  working  capital
     requirements.

     STANDARD & POOR'S REPORTED last week that they have assigned a "BB-" rating
     to American  Eco's Senior Notes above, as well as a corporate credit rating
     of  "BB-."  Standard & Poor's News  Release stated that the ratings outlook
     for  American  Eco  is positive.    MOODY'S  INVESTORS  SERVICES, INC.  has
     assigned a B1 credit rating to the issue.

     THE NOTES  WERE PLACED  UNDER A  RULE  144A PRIVATE  PLACEMENT offering  to
     institutional investors.  This  News Release shall not constitute  an offer
     to sell  or the  solicitation of  an offer to  buy the  Notes.   The Notes,
     issuable  upon the  sale  thereof,  have  not  been  registered  under  the
     Securities Act of 1933 nor under any state  securities laws, and may not be
     offered or sold in  the United States absent registration  or qualification
     or an applicable exemption from registration or qualification requirements.

     AMERICAN  ECO  is  a  leading  North  American  provider  of  single-source
     industrial support and specialty fabrication services in the energy, pulp &
     paper, and power generating industries.

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     For additional information, contact:
     Bruce Tobecksen             Cindy Jackson            Sylvia Dresner,
     Senior Vice-President       Director of Investor     Senior Vice-President
       & CFO                       Relations              VMW Inc., New York,
     Houston, Texas              Houston, Texas             New York
     (888) 774-3246              (888) 774-3246           (212) 605-3140
     www.americaneco.com                                   VMWeiner@aol.com
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