CLARIFICATION OF LIMITATION ON
                            BENEFICIAL OWNERSHIP IN
             AIR & WATER TECHNOLOGIES CORPORATION RECAPITALIZATION


               Branchburg, New Jersey -- September 25, 1997.  In
          response to inquiries, Air & Water Technologies
          Corporation (AMEX: AWT) clarified that prior to the
          consummation of the recapitalization plan announced
          yesterday, it would seek consents from holders of its
          8% Convertible Subordinated Debentures due 2015 to
          delete a change of control provision of such Indenture
          which provides holders a right of repurchase payable at
          AWT's option in cash or stock of AWT.  If the requisite
          consents are received, there will be no limitations on
          the beneficial ownership of voting securities by CGE or
          any other shareholder in connection with the proposed
          recapitalization.  If such consent solicitation is
          unsuccessful, the beneficial ownership of the voting
          power of any individual stockholder, including CGE, will
          be limited to 74% of the aggregate outstanding voting
          power of AWT until May 15, 2000 at which time the
          aforementioned change of control provision expires.

               Air & Water Technologies Corporation, through its
          subsidiary PSG, a leader in its growing wastewater
          privatization market, provides a comprehensive range of
          services and technologies for the operation, maintenance
          and management of water and wastewater systems; through
          Metcalf & Eddy, well-known internationally, specializes
          in engineering, design and construction of water and
          wastewater facilities and the remediation of contaminated
          soil; and through Research Cottrell, offers services and
          technologies for controlling air pollution.