April

April 06, 2001 | April 26, 2001 | April 30, 2001

April 30, 2001
Contact: Jim Baumgardner 208.331.8400
info@americanecology.com

AMERICAN ECOLOGY DELIVERS 38% REVENUE INCREASE

Envirosafe Services of Idaho Acquisition Leads Earnings Growth
BOISE, Idaho – Jim Baumgardner, Senior Vice President and Chief Financial Officer of American Ecology Corporation [NASDAQ: ECOL], today announced net income of $1.48 million for the quarter ended March 31, 2001 compared to $1.38 million for the same period last year. The basic earnings per share after preferred stock dividends for the period was $.10, compared to $.09 for the same period last year. This was the sixth consecutive quarter of profitability for the company. Revenue for the first quarter increased to $12.9 million, or a 38% increase over the same period in 2000.

"The acquisition of Envirosafe Services of Idaho registered an immediate, positive effect on the company’s first quarter financial performance" Baumgardner said, adding "our new Idaho and Illinois operations, combined with our existing business provide us a solid platform for continued growth of both revenue and earnings."

On February 1, 2001 the company acquired Envirosafe Services of Idaho whose principal operation is a hazardous and PCB waste treatment, storage, and disposal facility in the southwestern Idaho desert. Envirosafe also provides patented waste processing services at a steel mill in Sterling, Illinois.

The company’s Robstown, Texas facilities also posted a strong first quarter. The company’s Texas hazardous waste disposal facility enjoyed its best quarter in more than five years due to successful marketing of the facility’s recently constructed low cost airspace. The adjacent municipal solid waste landfill, El Centro also increased both revenue and earnings, as it has every month since opening in July 2000. However, the company’s radioactive waste processing operation at Oak Ridge, Tennessee, was unable to achieve profitability for the quarter due to the commitment of resources to reduce aged waste inventory.

"While we expect the chemical division and the Richland facility to perform well against our business plan in the second quarter, our commitment to reduce aged waste at Oak Ridge will negatively impact the company’s financial performance in the second quarter," Baumgardner stated, adding "We expect the quarter to be profitable on the whole, however. Our core operations are strong, our strategy is sound and we expect to deliver another profitable year in 2001," Baumgardner 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, medical and academic institutions, steel mills and petro-chemical facilities. The company provides 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 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.

AMERICAN ECOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
($ in 000’s except per share amounts)

Three Months Ended

March 31,

2001

2000

Revenue

$ 12,866

$ 9,319

Direct operating cost

6,733

4,875

Gross profit

6,133

4,444

Selling, general and administrative expenses

4,803

3,263

Income from operations

1,330

1,181

Investment income

174

177

Gain on sale of assets

46

1

Interest Expense

(258)

(60)

Other income

236

184

Net Income before income taxes

1,528

1,483

Provision for income taxes

46

101

Net income

1,482

1,382

Preferred stock dividends

97

100

Net income available to common

shareholders

1,385

1,282

Basic earnings per share

$ .10

$ .09

Diluted earnings per share

$ .08

$ .08

Dividends paid per common share

--

--

 


April 26, 2001
Contact: Stephen Romano 208.331.8400
info@americanecology.com

AMERICAN ECOLOGY CORPORATION ANNOUNCES NUCLEAR CONTRACTS

Tennessee subsidiary receives three long-term contracts to serve 25 nuclear power plants
BOISE, Idaho – Jack Lemley, Chairman, President, and CEO of Boise, Idaho based American Ecology Corporation [NASDAQ: ECOL], today announced the award of three long-term service contracts to its subsidiary in Oak Ridge, Tennessee. The contracts establish pricing terms for the transportation, processing and disposal of low-level radioactive waste materials from 25 commercial nuclear power plants. The contracts are expected to produce revenues of at least $6 million over the next three years.

"These contracts demonstrate the confidence placed in our Oak Ridge operation by the electric utility industry," Lemley stated, adding "We are very pleased to win these three contracts, which are an important component of our strategy to achieve long-term profitability at the Oak Ridge facility."

Exelon Corporation awarded the Oak Ridge facility a three-year comprehensive service contract for all 19 of its operating nuclear power plants in Illinois, Pennsylvania, and New Jersey. First Energy Nuclear Operating Company also awarded the Oak Ridge facility a three-year contract for its four nuclear power units in Ohio and western Pennsylvania. Niagara Mohawk Power Corporation awarded the Oak Ridge facility a two-year service contract, with a one-year extension option, to transport, process and dispose of contaminated metals from its two-unit nuclear power station in Oswego, NY.

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. 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 in these forward-looking statements and there can be no assurance that work orders received under the contracts will contribute to earnings for the Company, or that the Company will receive additional work orders. American Ecology has no duty or obligation to update any forward-looking statement made herein. Please refer to American Ecology Corporation’s most recent quarterly and annual reports filed with the Securities and Exchange Commission.


April 6, 2001
Contact: Stephen Romano 208.331.8400
info@americanecology.com

FEDERAL APPEALS COURT DISMISSES WARD VALLEY DAMAGES SUIT

American Ecology Reaffirms Commitment to Seek Recovery of Damages from State of California in Pending State Court Litigation
BOISE, Idaho – Jack K. Lemley, Chairman, President and CEO of American Ecology Corporation, today announced that a lawsuit filed by subsidiary US Ecology, Inc. to recover damages from the federal government for its failure to complete the land transfer for the Ward Valley low-level radioactive waste ("LLRW") disposal project had been dismissed on appeal.

The ruling, issued on March 30, 2001 by the U.S. Court of Appeals for the Federal Circuit, held that sufficient evidence was not presented to establish that the federal government intended for any third party – such as US Ecology -- to have rights under an alleged contract between the federal government and the State of California to purchase the Ward Valley site. The Court did not rule on the issues of contract formation or US Ecology’s standing to appeal.

"While we are disappointed in the ruling, American Ecology believes its case against the State of California remains strong," Lemley commented. "US Ecology intends to vigorously pursue completion of the land acquisition by California or recovery of monetary damages in State Court," Lemley added.

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. This pending suit also seeks recovery of costs incurred, interest, lost profits and certain legal expenses exceeding $162 million.

In October, 2000, California Superior Court Judge S. Charles Wickersham issued an Order granting California’s motion to dismiss the case. US Ecology appealed that ruling, and briefing is now underway. Oral argument has not been set. "The State of California still has a contractual obligation to US Ecology and nothing in the recent federal court ruling changes that," 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, medical and academic institutions and petro-chemical facilities. The company provides 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 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.