Marsulex Awarded Two New Contracts For Flue Gas Desulphurization Systems

Combined Contract Value Approximately $US 150 million

TORONTO , Jan. 6 /CNW/ - Marsulex Inc. (TSX: MLX) announced today that Marsulex Environmental Technologies (MET) has been awarded two new contracts for flue gas desulphurization (FGD) systems with an aggregate value of approximately $US 150 million.

Both projects will commence immediately and will be executed over the next several years.

Under the first contract, which is the larger of the two, MET will provide engineering, procurement and construction services for a large North American power producer. The contract calls for FGD upgrades for several coal fired power plants. The total capacity of these units is more than 1,200 megawatts.

The second contract is for technology, engineering, procurement of critical components and field advisory services for the retrofit of an FGD system for Zaklady Azotowe Pulawy, S.A., a leading chemical producer in Poland . The system, which will utilize MET's proprietary ammonium sulphate FGD technology, will treat flue gas from multiple coal-fired boiler units with equivalent capacity of approximately 300 megawatts.

Marsulex President and Chief Executive Officer, Laurie Tugman , said, "These new contracts are significant wins for Marsulex. They fit nicely into our schedule as we near completion of our major contract for the Lower Colorado River Authority and demonstrate the continuing strength of our business and technology. Upon completion of the project in Poland , Marsulex will have deployed five commercially proven AS-FGD installations in North America , Asia and Europe ."

Marsulex, which is based in Toronto , Ontario, is a leading provider of industrial services, including environmental compliance solutions for air quality control, processing or handling of industrial by-products or waste streams, and is a producer and marketer of sulphur-based industrial chemicals. The Company's services and products are provided to a broad base of industrial customers in a wide range of industries. Website: www.marsulex.com

This news release may contain forward-looking statements and information. These statements are based on current views and expectations that are subject to risks, uncertainties and assumptions that are difficult to predict.

Actual results may differ materially from results suggested in any forward-looking statements whether as a result of new information, future developments or otherwise. Other than as required under securities laws, we do not undertake to update any forward-looking information at any particular time. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Additional information identifying risks, uncertainties and assumptions is contained in the Company's filings with the securities regulatory authorities, which are available at www. sedar.com. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.

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For further information: Laurie Tugman, President and CEO, Tel: [phone]; or William Martin, Chief Financial Officer, Tel: [phone]