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February February 2, 2001 | February 26, 2001 February 2, 2001 AMERICAN ECOLOGY ACQUIRES ENVIROSAFE SERVICES OF IDAHO, INC. Profitable Idaho and Illinois Hazardous
Waste Operations Included "This acquisition is a major step for our Company and is right in line with our targeted growth strategy," Lemley stated, adding "These well established, profitable waste treatment and disposal assets are a superb fit with American Ecology’s existing core businesses." Operating as a wholly-owned subsidiary of American Ecology, the new company is expected to provide annual revenue of approximately $12 million and a significant, accretive contribution to earnings. Envirosafe Services of Idaho’s principal operation is a hazardous waste treatment and disposal facility located in the southwestern Idaho desert. "Our new Idaho landfill operation extends American Ecology’s existing, competitive position for hazardous waste in the western United States while significantly increasing the range of state-of-the art services we offer our customers," Lemley explained. Chief among the new services acquired through Envirosafe Services of Idaho is a patented, U.S. EPA-approved steel mill waste treatment technology to stabilize and "delist" certain hazardous wastes generated by steel mills, allowing economical disposal as non-hazardous industrial waste. In addition to the Idaho landfill operations, Envirosafe Services of Idaho is also licensed to use the patented delisting technology at a steel mill in Sterling, Illinois. "Acquiring this onsite contract and waste processing equipment provides us with valuable expertise in a new business that fits very well with our existing organization", Lemley commented. Stephen Romano, Vice President for Corporate Development with American Ecology, will serve as President of the Company’s Idaho operations, which include the newly acquired subsidiary. "This unique combination of environmentally protective waste treatment technology, desert disposal capacity and client site services favorably expands American Ecology’s capabilities", Lemley concluded. On Monday, February 5, at 10 am Mountain Time, Lemley will host an investor conference call to discuss the acquisition and respond to questions. Participants are invited to call 800.553.9545. The participation code is 734798. American Ecology Corporation, through its subsidiaries, provides hazardous, PCB, low-level radioactive and non-hazardous waste services to commercial, industrial and government customers throughout the nation. The Company, which provides scientific solutions that protect people and the environment, operates state-of-the-art desert disposal facilities in Idaho, Nevada and Washington State. American Ecology also operates a hazardous waste disposal facility and adjacent municipal solid waste landfill in south Texas, and a radioactive materials processing facility in Tennessee. Headquartered in Boise, Idaho, the Company is the oldest and most experienced hazardous and low-level radioactive waste services company in the United States. This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they fail to materialize or prove incorrect, could cause the results of American Ecology and its subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than historical fact are forward-looking statements, including any projections of earnings, revenues, or other financial items and any statements of the plans, strategies, and objectives of management. There can be no assurance that the business acquired will generate the expected level of future revenues or earnings, maintain existing contracts, or secure additional contracts. For information on factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation’s Report 10-K filed with the Securities and Exchange Commission. February 26, 2001 AMERICAN ECOLOGY REPORTS $4.7 MILLION IN EARNINGS, 21% REVENUE GROWTH FOR 2000 Company Poised for Growth in 2001 For the quarter ending December 31, 2000 the Company reported income before extraordinary items of $1.4 million, or $.10 per basic share, compared to net income of $2.9 million or $.21 per basic share for the same quarter of 1999. Revenue for the quarter decreased slightly to $10.3 million in 2000 from $10.5 million in 1999. "Strategic investments and increased efficiencies in our core waste treatment and disposal business lines are paying off, " Lemley stated, adding, "We achieved substantial revenue growth and increased profitability while completing major capital projects at our Texas and Nevada facilities." Contributing to the improved financial performance were expanded contracts at the Company’s Beatty, Nevada hazardous waste disposal facility, where revenues substantially exceeded the previous year. The Nevada site also added specialized organic chemical waste treatment and disposal services through the addition of advanced thermal treatment and recovery technology. Both the Nevada site and the Company’s hazardous waste facility near Corpus Christi, Texas completed major vertical expansions creating economical new disposal space. The July opening of a municipal solid waste landfill adjacent to the Company’s Texas hazardous waste facility represented completion of another major project, while providing a growing contribution to the Company’s financial results for the year. "The revenue growth and improvement in operating income demonstrate the solid platform our core business operations provide for sustained growth," noted Jim Baumgardner, senior vice president and chief financial officer. "We will continue to focus on increasing waste throughput at all of our sites through the addition of new technologies, aggressive marketing, competitive pricing, and excellent customer service." "The February 1, 2001 acquisition of Envirosafe Services of Idaho, Inc. to our portfolio of treatment and disposal assets is projected to add significantly to both the top and bottom line in the coming year," Lemley noted. Envirosafe’s primary assets include a hazardous and PCB waste treatment and disposal facility in Grand View, Idaho and an Illinois waste treatment facility. "We expect that revenue and earnings will continue to grow in 2001," Lemley concluded. 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, steel mills, medical and academic institutions and petro-chemical facilities. The company provides advanced scientific solutions that protect people and the environment. 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 future earnings, or prevail in any pending litigation. For information on factors that could cause actual results to differ from expectations, please refer to American Ecology Corporation’s Annual Report 10-K and Quarterly Reports 10-Q filed with the Securities and Exchange Commission. AMERICAN ECOLOGY CORPORATION
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