December
December 10, 2002 | December 23, 2002 | December 27, 2002
Contact: Chad Hyslop 208.331.8400
chyslop@americanecology.com
SUPERIOR COURT DENIES STATE MOTION TO DISMISS AMERICAN ECOLOGY’S WARD VALLEY CASE
Hearing Set to Resolve Remaining Pre-Trial Issues, Trial Scheduled for January 17, 2003
BOISE, Idaho - Steve Romano, President and Chief Executive Officer of American Ecology Corporation [NASDAQ: ECOL], today announced that California Superior Court Judge E. Mac Amos, Jr. has denied a State of California motion for summary adjudication of US Ecology’s promissory estoppel and declaratory relief claims against the State in the Ward Valley case, clearing the way for trial. US Ecology Inc. is seeking more than $162 million in development expenses, interest, and other damages from the State for, among other things, abandoning its efforts to purchase the Ward Valley low-level radioactive waste (“LLRW”) disposal site from the federal government.
The final order was entered by the California Superior Court for the County of San Diego on December 20, 2002. The order also set a January 3, 2003 date to hear arguments on a pending State motion seeking to protect from disclosure documents it contends are privileged, and on whether to allow depositions of high ranking State officials. Trial is currently scheduled to begin in San Diego on January 17, 2003.
The Court’s ruling noted the existence of “triable issues of material fact.” "We are pleased with the Superior Court's timely order," Romano stated, adding "we believe we have a strong claim against the State of California, and look forward to the opportunity to present our case at trial."
American Ecology Corporation, through its subsidiaries, provides radioactive, PCB, hazardous and non-hazardous waste services to commercial and government customers throughout the United States, such as nuclear power plants, steel mills, medical and academic institutions and petro-chemical facilities. 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, beliefs, and assumptions about the pending litigation. Actual results may differ materially from what is expressed herein and no assurance can be given that the company can generate future earnings, or prevail in this or other pending litigation. For information on factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation's Report on Form 10-K filed with the Securities and Exchange Commission.
Contact: Chad Hyslop 208.331.8400
chyslop@americanecology.com
AMERICAN ECOLOGY DEDICATES IDAHO RAIL FACILITY EXPANSION
Investment Increases Throughput Capacity at Grand View, Idaho Disposal Site
BOISE, Idaho
Steve Romano, President and Chief Executive Officer of American Ecology
Corporation [NASDAQ: ECOL], was joined today by several members of the
Company's Board of Directors in dedicating subsidiary US Ecology Idaho's
recently expanded rail transfer station. The transfer facility, located
next to a major east-west railroad line, serves the Company's hazardous
waste disposal facility near Grand View, Idaho.
"This rail transfer facility expansion demonstrates American Ecology's commitment to more efficiently serve our government and private industry customers," Romano stated, adding, "Rapid railcar turnaround is particularly important to environmental clean-up projects facing tight schedules and railcar availability constraints."
Approximately $246,000 was invested in the project, adding 3,000 feet of new track and a second rail line switch. The expansion almost triples the number of railcars that can be handled at one time by the rail facility, which employs eight full time employees.
American Ecology Corporation, through its subsidiaries, provides radioactive, PCB, hazardous and non-hazardous waste services to commercial and government customers throughout the United States, such as nuclear power plants, steel mills, medical and academic institutions and petro-chemical facilities. Headquartered in Boise, Idaho, American Ecology 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, beliefs, and assumptions about the industry and markets in which American Ecology Corporation and its subsidiaries operate. Actual results may differ materially from what is expressed herein and no assurance can be given that expansion of the Company’s Idaho rail transfer facility will generate increased revenue or earnings, or that the Company can successfully implement its growth strategy and generate future earnings. For information on factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation’s Report on Form 10-K, and most recent Form 10-Q filed with the Securities and Exchange Commission.
Contact: Chad Hyslop 208.331.8400
chyslop@americanecology.com
AMERICAN ECOLOGY DISCONTINUES RADIOACTIVE WASTE PROCESSING BY OAK RIDGE, TENN SUBSIDIARY
Action Taken to Reduce Expenses and Better Position Subsidiary for Sale
BOISE, Idaho - Stephen Romano, President and Chief Executive Officer of American Ecology Corporation [NASDAQ: ECOL], today announced that subsidiary American Ecology Recycle Center, Inc. (“AERC”), based in Oak Ridge, Tennessee is discontinuing processing of low-level radioactive waste (“LLRW”) to reduce operating expenses and better position AERC for sale. Romano also announced an associated labor force reduction of 63 employees. The subsidiary will retain a limited number of employees to oversee the removal of stored waste from the Oak Ridge site and maintain compliance with its radioactive materials license.
“Since October, when the Company announced its intention to market and sell AERC, American Ecology entered non-disclosure agreements with, and provided information to several interested parties, but to date have received no acceptable offers based on the Oak Ridge facility’s historic mode of operations,” Romano explained. “However, several potential buyers have expressed interest in acquiring AERC based on different business models,” Romano added. Company management believes the discontinuation of LLRW processing and timely removal of waste will reduce losses and liabilities at the Oak Ridge facility, increasing its attractiveness to potential buyers.
Since purchasing AERC in 1994, the subsidiary has lost $45 million, including a substantial operating and net loss in 2001 and 2002 year-to-date. “The Oak Ridge commercial LLRW processing operation does not fit our core business model since the majority of wastes processed there are ineligible for burial at our disposal facilities,” Romano said. American Ecology’s profitable, core business is the treatment and disposal of hazardous, PCB and radioactive waste at sites in Idaho, Nevada, Texas and Washington.
American Ecology expects to continue to market AERC to qualified buyers while continuing to meet its radioactive materials license obligations.
Management expects that discontinuance of its LLRW processing operations will require the Company to take special charges, establish reserves and impair certain assets of AERC during the fourth quarter of 2002. The Company’s preliminary, initial estimate for these special charges associated with discontinuing processing operations at Oak Ridge is in the range of approximately $6 million. The Company will report its 2002 fiscal year results, along with fourth quarter 2002 financial results, on February 24, 2003.
“The reduction in our Oak Ridge workforce was a difficult but necessary decision in preparing to exit the commercial radioactive waste processing business,” Romano stated, concluding, “We thank the affected employees at Oak Ridge for their past efforts.”
American Ecology Corporation, through its subsidiaries, provides radioactive, PCB, hazardous, and non-hazardous waste services to commercial and government customers throughout the United States, such as nuclear power plants, steel mills, medical and academic institutions and petro-chemical facilities. 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, beliefs, and assumptions about the industry and markets in which American Ecology Corporation and its subsidiaries operate. Actual results may differ materially from what is expressed herein and no assurance can be given that the Company can successfully implement its growth strategy, generate improved earnings, or conclude an agreement for the sale of subsidiary American Ecology Recycle Center, Inc. The current preliminary estimate for discontinued operations will be adjusted as additional facts become known and further analysis is performed. No assurance can be given that the estimated special charges associated with discontinued processing operations will not ultimately be higher than discussed herein. For information on other factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.