GEM completes acquisition

Pomona, CA— General Environmental Management, Inc. (GEM) an environmental and waste remediation company, announced the company signed a non-binding Letter of Intent (LOI) to acquire K2M, a California-based provider of mobile wastewater treatment and vapor recovery services. Under the terms of the LOI, GEM expects to pay cash for all K2M shares and expects the transaction to close in the first quarter of 2006. The acquisition is subject to the execution and closing of a definitive agreement.