Waste Management, Peltz Group Partner to Form Recycling Company

Houston, TX - Waste Management Inc., announced the formation of a new recycling organization, Recycle America Alliance (RAA). The goal of the alliance is to optimize the capacity and improve the profitability of the company's recycl-ing line of business by combining assets and operations with a number of other key domestic recycling processors and marketers. Recycle America Alliance will be a majority-owned and consoli-dated subsidiary of Waste Management, Inc.

Waste Management also announced the first partner in the alliance is The Peltz Group, the country's largest privately held recycler which handles more than two million tons of recyclable fiber annually. The Peltz Group is based in Milwaukee, Wisconsin.

"By combining operations, including both facilities and personnel, we believe we will be able to increase capacity utilization, in part by rationalizing our facilities. The recycling industry is still very fragmented in the United States and processing capacity far exceeds demand," said Steve Ragiel, vice president of recycling for Waste Management.

Under the agreement, Waste Management will combine the majority of its recycling processing assets with The Peltz Group's assets to form a new company that will provide recycling, materials brokerage services, container processing and trading, a service that allows customers to stabilize the price of their commodities. Waste Management will own approximately 90 percent of RAA and will be consolidating the company financially. The Peltz Group will own the remaining interest of the new company. The company will operate as a consolidated subsidiary of Waste Management and will be directed by a management team made up of former officers and managers of both companies.

Recycle America Alliance will have approximately 3,300 employees; will handle more than eight million tons of commodities per year; will operate 80 recycling plants and provide marketing responsibility for more than 190 locations in the U.S. and Canada. In addition, RAA will operate seven container processing facilities, one plastics recycling facility, and four electronics recycling facilities.