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PERMA-FIX
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ENVIRONMENTAL SERVICES, INC.
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FOR IMMEDIATE RELEASE
Contact:
Dr. Louis F. Centofanti Stan Altschuler Karl Ehlert,
Perma-Fix Environmental Strategic Growth Conseiller
Services, Inc.
(404) 847-9990 (516) 829-7111 (011) 34 971 825 719
PERMA-FIX ENVIRONMENTAL COMPLETES ACQUISITION OF
INDUSTRIAL WASTE TREATMENT COMPANIES WITH COMBINED
REVENUES OF MORE THAN $22 MILLION
* Acquisition Is Accretive To Earnings
* Pro-forma Annualized Revenues To Exceed $55 Million
Atlanta, GA June 3, 1999 Perma-Fix Environmental Services, Inc.
(NASDAQ: PESI) (GERMANY: PES.BE) and its CEO, Dr. Louis F. Centofanti
announced today that it has completed the previously announced
acquisition of Chemical Conservation Corporation, Chemical Conservation
of Georgia, Inc. and Chem-Met Services, Inc. collectively referred to as
"Chem-Con." The combined purchase price of this acquisition totaled $8.7
million, with the consideration paid in the form of cash, notes and
common stock.
Chem-Con has more than 30 years of experience and proven expertise
in the waste industry and operates waste treatment facilities in Orlando,
Florida; Valdosta, Georgia; and Detroit, Michigan. For the year ended
September 30, 1998, Chem-Con had combined revenues of approximately $22
million and net income of $480,000. The acquisition of Chem-Con is of
strategic importance to the continued growth of Perma-Fix and, including
Chem-Con revenues for a full twelve months, will result in revenue growth
to an annualized run-rate of more than approximately $55 million. In
addition, the acquisition significantly expands the Company's presence
into several new major markets and geographic locations. Perma-Fix
currently operates waste treatment facilities in Gainesville, Florida;
Ft. Lauderdale, Florida; Dayton, Ohio; and Tulsa, Oklahoma.
Chem-Con's revenues are principally generated from the collection,
treatment, and recycling of industrial and hazardous waste, including
waste oils, water and miscellaneous solid waste. Chemical Conservation
Corporation operates a permitted treatment and storage facility and
transfer station that also serves as the base for a private trucking
fleet; Chemical Conservation of Georgia, Inc. treats hazardous waste
and recycles solvents; and Chem-Met Services, Inc. treats and stabilizes
inorganic wastes and maintains a government services division that is
focused principally on the Defense Revitalization and Marketing Services
(DRMS) market. Perma-Fix will utilize this established government
services division as a platform to further enhance its current and future
governmental initiatives. Perma-Fix will immediately capitalize on new
growth opportunities by incorporating the use of its proprietary Perma-
Fix I and patent-pending Perma-Fix II processes at these facilities.
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June 3, 1999
Commenting on the acquisition, Dr. Louis Centofanti, Chairman and
Chief Executive Officer commented, "The acquisition significantly expands
the size of our market, increases our geographic presence and represents
a strategic milestone in the growth of our Company. In addition, the
acquisition of Chem-Con is accretive to our earnings and will positively
impact our earnings per share. We will immediately capitalize on the use
of our proprietary technologies at these new locations, towards
establishing a dominant position in the waste treatment industry. Chem-
Con is excellently managed, and experiencing growth, particularly within
its government services division, which focuses on the Department of
Defense (DOD). Their established presence as a provider of waste
treatment services to the government significantly expands our own
capabilities in this area, and will compliment our efforts to provide
hazardous waste treatment services to the U.S. Departments of Defense and
Energy."
Tom Sullivan, principal owner and President of Chem-Con, who will
join the Perma-Fix Board, commented that, "I am excited to be joining
forces with Perma-Fix. The combination of Perma-Fix and Chem-Con, as a
larger entity, will create a new powerful, and highly competitive force
in the environmental industry."
Perma-Fix Environmental Services, Inc. provides unique hazardous,
mixed and industrial waste management services, along with environmental
engineering and consulting services. The Perma-Fix Process is a
proprietary mobile treatment technology that converts hazardous waste
into a non-hazardous material. The process is simple, safe, create little
or no volume increase and is the most cost-effective option on the market
today for the cleanup of mixed radioactive waste. Perma-Fix is widely
recognized for meeting customer needs with technologically advanced
alternatives to traditional landfill and incineration methods.
Please visit us on the World Wide Web at "www.perma-fix.com."
This press release contains "forward-looking statements" which are
based largely on the Company's expectations and are subject to various
business risks and uncertainties, certain of which are beyond the
Company's control. Forward-looking statements include, but are not
limited to, the information concerning the possible or assumed future
results of operations of the combined Companies, increased revenue,
enhanced profitability and growth opportunities and the impact on
earnings per share, economies of scale, new customers, access to new
products and additional markets as a result of the acquisition. These
forward-looking statements are intended to qualify for the safe harbors
from liability established by the Private Securities Litigation Reform
Act of 1995. While the Company believes the expectations reflected in
this news release are reasonable, it can give no assurance such
expectations will prove to be correct. There are a variety of factors
which could cause future outcomes to differ materially from those
described in this release, including without limitation, future economic
conditions, industry conditions, competitive pressures, or the ability of
the Company to achieve the anticipated economies of scale, profitability
and growth. The Company makes no commitment to disclose any revisions to
forward-looking statements, or any facts, events or circumstances after
the date hereof that bear upon forward-looking statements.
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