September

September 05, 2001 | September 06, 2001 | September 28, 2001

September 06 , 2001
Contact: Stephen Romano 208.331.8400
info@americanecology.com

STATE APPEALS COURT REVERSES KEY PORTIONS OF LOWER COURT RULING ON AMERICAN ECOLOGY'S WARD VALLEY PROJECT

Damages Case Remanded For Trial
BOISE, Idaho - Jack K. Lemley, Chairman, President and Chief Executive Officer of American Ecology Corporation [NASDAQ: ECOL], today announced that the California Court of Appeal has reversed key portions of a lower court ruling in litigation filed by subsidiary US Ecology, Inc. to recover damages from the State of California for abandoning its duties in establishing a low-level radioactive waste ("LLRW") disposal facility. The case is now remanded for trial.

The ruling, issued on September 5, 2001 by the California Court of Appeal, Fourth Appellate District, held that the State clearly had the authority to make contracts regarding establishment of the proposed Ward Valley LLRW disposal facility in the eastern Mojave Desert. The court further held that US Ecology adequately alleged that California had induced it to spend money based on promises that were later broken, writing "In this case, Ecology alleged facts that fit within the classic model of a promissory estoppel claim."

"This ruling is a clear victory for US Ecology," Lemley stated, adding, "We are confident of our ability to prove these allegations and establish damages at trial." US Ecology's complaint seeks in excess of $162 million for recovery of site development expenses, interest, and lost profits.

The three-judge panel also vacated the lower court's order permitting intervention in the case by several Ward Valley opposition groups and directed the trial court to reconsider the matter.

"US Ecology intends to vigorously pursue successful conclusion of this litigation to protect the interests of our shareholders," 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, 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 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 final 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.

September 05 , 2001
Contact: Stephen Romano 208.331.8400
info@americanecology.com

ILLINOIS ACCEPTS CLOSED AMERICAN ECOLOGY DISPOSAL SITE

State custody decision reaffirms American Ecology's ability to safely close and stabilize radioactive waste disposal facilities in compliance with state and federal requirements
BOISE, Idaho - Jack Lemley, President, Chairman and Chief Executive Officer of American Ecology Corporation [NASDAQ:ECOL], today announced that the Illinois Department of Nuclear Safety has accepted permanent custody of the low-level radioactive waste ("LLRW") disposal site operated by subsidiary US Ecology, Inc. from 1968 to 1978. "This marks only the second time a LLRW disposal facility has been successfully closed, stabilized, and returned to a state nuclear regulatory agency for long-term institutional control," Lemley stated. In 1997, the State of Nevada accepted transfer of US Ecology's Beatty, Nevada LLRW disposal facility.

"Illinois' acceptance of the Sheffield site represents a significant milestone for American Ecology Corporation, subsidiary US Ecology, and the nuclear industry in general," Lemley said, adding "This demonstrates the strong commitment of our company and the industry to responsibly manage the wastes produced by society's beneficial uses of radioactive materials."

Thomas W. Ortciger, Director of the Illinois Department of Nuclear Safety, accepted transfer of the radioactive waste disposal site on August 10, 2001, in accordance with a 1988 court-approved settlement agreement. Return of the site to the Department begins the final phase of the closely regulated life cycle of a LLRW disposal facility.

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. 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 or successfully manage the closure of its presently operating waste facilities. 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.

September 28, 2001
Contact: Jim Baumgardner 208.331.8400
info@americanecology.com

AMERICAN ECOLOGY REVISES 2001 OUTLOOK DOWNWARD

BOISE, Idaho - Jim Baumgardner, Senior Vice President and Chief Financial Officer of American Ecology Corporation [NASDAQ: ECOL], today announced that despite the continued and increasing profitability of its disposal business, the Company has revised its prior earnings estimates downward as a result of the weak financial performance of its Oak Ridge nuclear waste processing facility and a slowing national economy.

"The Company's financial performance for the quarter ending September 30 and year-to-date will be materially lower than originally projected primarily due to the financial performance of our Oak Ridge facility," Baumgardner stated, adding "a slowdown in the national economy could negatively impact the Company in future periods."

The Company is carefully considering the impacts of a weaker national economy, changes in the nuclear processing industry, and newly implemented operational improvements at Oak Ridge on future profitability.

"We are closely monitoring the operating and financial performance of the Oak Ridge facility, while evaluating all alternatives to maximize long-term profitability," 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 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, overcome its operating difficulties at its Oak Ridge facility, or prevail in pending litigation. For information on factors that could cause actual results to materially differ from expectations, please refer to American Ecology Corporation's Report on Form 10-K and most recent 10-Q filed with the Securities and Exchange Commission.