EXHIBIT  99.1

[GRAPHIC OMITTED]

FOR IMMEDIATE RELEASE
OCTOBER 1, 2002
Contact:  Chad Hyslop (208) 331-8400

sromano@americanecology.com     www.americanecology.com
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           COURT RULES AGAINST NEBRASKA IN RADIOACTIVE WASTE LAWSUIT,
               AMERICAN ECOLOGY TO PURSUE $12.2 MILLION IN DAMAGES

                  NEBRASKA ORDERED TO PAY TOTAL OF $151 MILLION


     American Ecology Corporation (NASDAQ:ECOL) today announced that on
September 30th, U.S. District Court Judge Richard G. Kopf entered judgment in
favor of the Central Interstate Low-Level Radioactive Waste Commission ("CIC")
against the State of Nebraska for $151,408,240 plus post-judgment interest in a
lawsuit involving American Ecology subsidiary US Ecology, Inc. and three
electric utility companies. The ruling followed closely on the heels of a two
month trial that concluded in August, 2002.

     The Court found that Nebraska breached its good faith obligation to the CIC
when processing a license application for a proposed low-level radioactive waste
disposal facility in Nebraska. US Ecology submitted the license application as
the CIC's contractor and developer. "Governor Nelson, either directly or though
his subordinates, influenced the process in order to fulfill a campaign promise
which required that the license be denied without regard to the technical
merits," Judge Kopf declared in a lengthy Memorandum and Order accompanying the
judgment, adding, "Frankly, I cannot conceive of a stronger case of bad faith in
the performance of a contract".

     "We are pleased with the Court's expeditious ruling, and its well
documented findings that Nebraska officials acted improperly in processing our
license application," stated American Ecology President and Chief Executive
Officer Stephen Romano.


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     As part of its damages determination, the Memorandum and Order found that
US Ecology contributed $6,247,920 to the Commission in the form of work intended
to achieve a license. "The Commission lost the entire value of these
contributions as a direct result of Nebraska's bad faith conduct" the Court
concluded. Adding simple interest from the time of the Company's equity
contributions up to the time of the ruling, the Court identified total US
Ecology damages of $12,260,460.

     Today, counsel for Nebraska filed a motion to stay the judgment pending
appeal. "We believe the case against Nebraska is strong, and we will remain
closely involved in the appeals process to protect the interests of our
shareholders," Romano concluded.

     US  Ecology submitted its application to construct and operate the proposed
Butte,  Nebraska  disposal  site  in  1990.  In  December  of 1998, the State of
Nebraska  denied the license. Four electric utility companies that substantially
funded  the  project  sued  Nebraska  alleging  bad faith.  One of the utilities
subsequently  withdrew.  The  CIC  was  originally  joined  in  the  suit  as  a
defendant,  but  was  later  realigned as a plaintiff.  US Ecology intervened to
recover  its  contributions  to  the  project.  Prior  to  trial,  Nebraska
unsuccessfully  pursued  a  series  of  motions  to  dismiss  the  case.

      A full copy of the Court's ruling is available at  "www.ned.uscourts.gov".

     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.


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     This press release contains forward-looking statements that are based on
our current expectations, beliefs, and assumptions about legal and other matters
that could materially impact American Ecology Corporation and its subsidiaries.
Actual results or outcomes may differ materially from what is expressed herein
and no assurance can be given that the Company will ultimately prevail in this
or any lawsuit or recover any damages. For additional 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 its most recent Form 10-Q
filed with the Securities and Exchange Commission.

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