FEBRUARY 2008

Waste Management reveals Capital Allocation Program

Waste Management, Inc. (WMI) announced that its board of directors approved a new capital allocation program that includes the authorization for up to $1.4 billion in combined cash dividends and common stock repurchases in 2008.

Beginning the first quarter of 2008, the Company expects to raise its quarterly dividends to $0.27 per share, or $1.08 per share per year, which would be an increase of 12.5% compared to the dividends paid in 2007.

As part of the 2008 capital allocation program, the board authorized stock repurchases not to exceed the $1.4 billion, less dividends paid. Based on the number of outstanding shares as of September 30, 2007 and the new dividend rate, the Company expects to pay approximately $560 million in dividends in 2008. The amount of stock repurchased will depend on a number of items, including capital expenditures, cash acquisition costs and cash allocated to the retirement of debt, which are three other key components of the capital allocation program.

WMI noted that the board intends to declare the first quarter 2008 dividend in February, at which time the record and payment dates for the first 2008 quarterly dividend will be announced. It is expected that the first payment of the higher dividend will occur in March of 2008.