January 2006

American Ecology increases reserve for non-operating Texas facility

Boise, ID— American Ecology Corporation announced a $542,000 increase in its estimate for closure and post-closure costs for a non-operating hazardous waste facility formerly operated by the Company near Winona, Texas.

The revised cost estimate and related reserve increase reflect a monitored natural attenuation plan which the Company has determined, in consultation with the State of Texas, to be the most likely long-term remedy.

The revised cost estimate includes activities and costs to be incurred through 2036. An independent environmental engineering and consulting firm provided peer review of the Company’s planned activities and estimated future costs.

Accounting for closure and post closure liabilities is governed by Statement of Financial Accounting Standard (SFAS) No. 143, “Accounting for Asset Retirement Obligations.” The result of the change in estimated costs and the application of SFAS No. 143 will be an additional $542,000 expense and a commensurate increase in the closure and post closure reserve during the fourth quarter of 2005. Including the $542,000, the updated reserve for the Winona facility is now $1,646,000. Consistent with SFAS No. 143, the Company periodically, but at least annually, reviews closure and post closure reserves for adequacy. The Company will review its remaining closure and post closure reserves at year-end.

The Company also reported proceeds of $1,290,000 received from its property and business interruption insurance carrier in partial resolution of a claim on a 2004 fire at its Robstown, Texas hazardous waste facility. While portions of the claim remain under review by the insurer and additional amounts may be received before year-end or in 2006, the Company will recognize a gain of $860,000 from the recent payment in the fourth quarter of 2005.


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