March 2005

Group receives favorable court ruling on landfill and waste agreement

Corpus Christi, TX— Consortium Service Management Group, Inc. announced that the U.S. Bankruptcy Court, Northern District of Illinois, Eastern Division, issued an order approving the settlement agreement between the trustee of Resource Technology Corporation (RTC), Chastang Landfill, Inc., Waste Management Holding, Inc. and Consortium Service Management Group, Inc.

Among the actions approved were the termination of the Chastang Landfill contract between Consortium and RTC, the payment of $75,000 by Consortium to the trustee for RTC and the mutual release of all claims by and against Consortium and RTC. The order becomes effective 10 days after the February 1, 2005 issue date. This ruling permits Consortium to move forward on its new contract with Waste Management, the landfill site’s owner, for the operations at the Chastang Landfill.

Consortium will be able to begin startup and landfill gas production operations at the Chastang Landfill under its contract with Waste Management, Inc. The company has a 10-year operating agreement with a possible five-year extension to operate the complex, which is near Mobile, Alabama.

The agreement was submitted in December 2004 to the bankruptcy court in Chicago, where RTC’s proceedings are pending for approval. The startup of the Chastang site’s gas production was delayed by a legal dispute between RTC and Waste Management, Inc. As a result, installation was stopped approximately 19 months ago.

The ASME-certified, 177 metric-ton complex includes compressors and technology for separating and removing high levels of CO2 content from raw landfill methane gas resulting in pipeline quality methane gas suitable for the commercial natural gas market. The company will be paid from revenues generated from the sale of the gas.

There are approximately 18,000 landfills in the U.S. and Canada. The company believes its technology could fit production criteria of up to 15% to 20% of these landfills. Consortium Service Management Group, Inc. owns the patent-pending technology for landfill gas production.


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