November

AMERICAN ECOLOGY UPDATES STATUS OF WARD VALLEY LAWSUITS

Company Appeals Dismissal of Lawsuit Filed Against State of California, Evaluates U.S. Court of Appeals Dismissal of Federal Mandamus Suit
BOISE, Idaho – Stephen Romano, vice president at American Ecology Corporation, today provided updates on three separate lawsuits filed by subsidiary US Ecology, Inc. against the State of California and the federal government to protect its investment in the Ward Valley low-level radioactive waste ("LLRW") disposal project. "American Ecology is pursuing a coordinated strategy to protect its rights and interests in the Ward Valley project," Romano explained, adding, "We believe our case for recovery of significant monetary damages is strong."

In May 2000, US Ecology filed suit against the State of California in Superior Court for the County of San Diego seeking to compel the State to resume efforts to acquire the Ward Valley site so construction of the disposal facility may proceed. This suit also seeks recovery of costs incurred, interest, lost profits and certain legal expenses exceeding $162 million.

On October 24, 2000, Superior Court Judge S. Charles Wickersham issued an Order granting California’s motion to dismiss all causes of action. The Court also granted a motion to intervene by several organizations critical of the Ward Valley project. On November 13, 2000, US Ecology appealed the ruling. The company’s opening brief in the state court appeal is tentatively scheduled for January 25, 2001.

US Ecology has also acted to protect its investment in federal court through two lawsuits filed against the federal government. These suits are based on Interior Secretary Bruce Babbitt’s actions in early 1993 purporting to rescind Interior’s prior approval of the Ward Valley land sale.

The first case, filed in the U.S. Court of Federal Claims, seeks recovery of monetary damages from the federal government in excess of $73 million. US Ecology appealed a March 2000 ruling dismissing the case. Oral argument has not yet been scheduled.

The second case, filed in the Federal District Court for the District of Columbia, seeks injunctive relief and a writ of mandamus ordering delivery of the Ward Valley site to California. The trial court rendered an adverse judgment in March 1999, which the Company appealed. On November 14, 2000, the U.S. Court of Appeals for the District of Columbia Circuit dismissed the case, ruling that US Ecology lacked standing. No decision has been made on a possible appeal.

In a finding the Company considers material to its pending lawsuit against the State of California, the Federal Appeals Court ruled that US Ecology’s "…ability to ride ‘piggyback’ on the State’s undoubted standing exists only if the State is in fact an appellant before the Court." California had earlier failed to appeal despite repeated US Ecology requests that it do so.

American Ecology Corporation, through its subsidiaries, provides a variety of radioactive, PCB, hazardous and non-hazardous waste services to commercial and government customers throughout the United States, such as nuclear power plants, medical and academic institutions and petro-chemical facilities. The company provides scientific solutions that protect people and the environment from radioactive and hazardous materials. Headquartered in Boise, Idaho, the Company is the oldest radioactive and hazardous waste services Company in the United States.

This press release contains forward-looking statements that are based on our current expectations and beliefs regarding pending litigation. There can be no assurance that the Company will recover its investment or earn a return on the Ward Valley project, since the outcome of litigation cannot be predicted. Failure to recover deferred site development costs would have a material adverse effect on the Company’s financial condition. For further information, please refer to American Ecology Corporation’s Reports on Form 10-K and 10-Q filed with the Securities and Exchange Commission.