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September 2007

BUSINESS/ORGANIZATIONAL BRIEFS

Astec Industries acquires Peterson, Inc.

Astec Industries, Inc. finalized the previously announced purchase of Peterson, Inc. (Peterson) located in Eugene, Oregon.

The final purchase price including closing adjustments was $21,100,000 with the possibility of additional payments of up to $3,000,000. The Company also paid off approximately $7,000,000 of outstanding Peterson debt.

Under a separate contract, the Company agreed to purchase at a future date all of the real estate and improvements used by Peterson for approximately $7,000,000.

Peterson is a manufacturer of whole-tree pulpwood chippers, horizontal grinders and blower trucks.

The company will continue to operate from its Eugene headquarters under the name Peterson Pacific Corp.

Bill Shaw heads Heil customer support team

Heil Environmental has hired Bill Shaw as its new customer support manager. With Shaw’s appointment, Heil has also moved its customer support center into its marketing organization to better align it with product development and voice of customer (VOC) initiatives.

Shaw is responsible for evolving Heil’s customer support center into a world-class service organization. His initial efforts will focus on refining the support center’s structure. Shaw also plans to re-engineer Heil’s Ready Truck program and create effective internal and external training programs.

Shaw brings to Heil more than 17 years of experience with various manufacturers, including Bacou-Dalloz Americas and Hitachi Power Tools.

Scott Dempsey joins MHF Logistical Solutions

MHF Logistical Solutions Inc. (MHF-LS), a provider of packaging, transportation and logistics, announced that Scott Dempsey has been appointed as director of sales and marketing.

Dempsey, who joined MHF-LS in 2000, is a nuclear industry veteran with extensive experience in nuclear power plant operations, commercial waste processing and waste transportation and disposition. Prior to being named director of sales and marketing, he was a business development manager for MHF-LS’ nuclear services group and project manager for the project cargo division.

In his new role, Dempsey is responsible for overseeing and maintaining all business development and marketing activities in the United States.

Stericycle reports second quarter 2007 results

Revenues for the quarter ended June 30, 2007 were $232.8 million, up 17.3% from $198.4 million in the second quarter of 2006. Acquisitions less than 12 months old contributed $11.0 million to the $34.4 million revenue growth in the second quarter of 2007. Gross profit was $104.5 million, up 19.4% from $87.6 million in the second quarter last year. Gross profit as a percent of revenues was 44.9% versus 44.1% in the second quarter of 2006.

For the six months ended June 30, 2007, revenues increased to $443.9 million, up 17.5% from $377.7 million in the same period a year ago. Gross profit was $198.8 million, up 19.5% from $166.3 million in the same period a year ago. Gross profit as a percent of revenues was 44.8% versus 44.0% in the same period in 2006. Earnings per diluted share increased 25.9% to $.68 from $.54 per diluted share in the same period a year ago.

Allied Waste to sell certain assets to Veolia

Allied Waste Industries, Inc. announced that it has reached a definitive agreement with Veolia ES Solid Waste, Inc. to sell certain solid waste landfill and collection assets in the east-central and southeastern United States for $86 million.

The assets include collection and disposal operations near Elkhart, Indiana, in southern Illinois, eastern Kentucky and south-central Georgia. These operations, which total 6 hauling companies, 2 transfer stations and 5 landfills, are expected to generate approximately $54 million in revenue in 2007.

Upon completion of the transaction, which is anticipated to occur during the third quarter, Allied Waste expects to record a non-cash charge primarily related to goodwill. The transaction is subject to receipt of certain government approvals and other customary closing conditions.

Industrial Services of America appoints CEO

Industrial Services of America, Inc., a provider of recyclable commodities and waste stream management logistics services, has appointed Brian G. Donaghy as president and chief operating officer.

Donaghy has served as ISA’s acting chief operating officer since January 1, 2007. Prior to his appointment to that position, Donaghy was a consultant to ISA regarding the company’s ferrous and non-ferrous operations. Since 2001, he has owned and operated Industrial Logistic Services, LLC, a scrap metal and waste transportation company. He is a native of Coalisland, Ireland.

As president and COO, Donaghy will continue to manage all of ISA’s waste stream management, scrap processing and scrap brokering operations.

RecycleBank appoints new president

RecycleBank announced that Matthew Tucker has been appointed president of RecycleBank. Tucker’s background encompasses a range of entrepreneurial and corporate leadership positions in the consumer and business-to-business technology and services industries.

Tucker’s last decade was spent in senior management and leadership roles at growth-stage software companies. As chief executive officer of Rely Software, Tucker successfully grew the company and sold it to Odyssey Logistics, a business process outsourcing firm spun-off from Dow Chemical. Immediately before joining RecycleBank, Tucker was the president of New York-based ISC Software, a provider of workforce management software. Tucker also served as the senior vice president of business development for Smart Systems Technologies.

Metal Management acquires Indiana company

Metal Management, Inc. has completed the acquisition of substantially all of the assets of privately held Universal Recycling, Inc. Terms of the transaction were not disclosed.

Universal Recycling is a full service scrap processing firm, specializing in demolition, roll off boxes and mobile crane service. Through its three operating facilities in Gary, Chesterton, and La Porte, Indiana, Universal Recycling handles approximately 80,000 tons of ferrous metals and 10 million pounds of non-ferrous metals each year.

The acquisition is being funded from borrowings under the company’s line of credit.

MHF Logistical opens Arizona transload facility

MHF Logistical Solutions, Inc., a provider of packaging, transportation and services for generators and shippers of radioactive, hazardous and non-hazardous waste, materials and byproducts, announced that it has opened a new transload facility in Parker, Arizona.

The Parker facility has the capacity to handle rail to truck shipments utilizing intermodal containers, box cars, and the Company’s patented Lift Liners. The facility will initially handle hazardous and non-hazardous materials while offering shippers full service solutions for inbound and outbound rail movements.

IronPlanet names Owens as chairman and CEO

IronPlanet has named Gregory J. Owens chairman and chief executive officer, effective August 1. Owens will also join the company’s Board of Directors on that date.

Owens recently served as managing director of Red Zone Capital, a Washington, DC private equity qroup. Prior to that, he was chairman and chief executive officer of Manugistics Group Inc.

Owens joins IronPlanet with extensive experience and proven results in revenue growth and supply chain business management. He has served as global managing partner supply chain management at Accenture where he was a founding member of their supply chain group. Owens has served, or presently serves, on several outside boards including Serena Software, Inc., S1 Corporation and SecureWorks, Inc.

Amerex breaks ground on new facilities

Amerex Group, Inc., a New York-based hazardous waste transportation firm, announced that it has broken ground for the construction of its first water treatment facility in Kansas City, Missouri.

The plant will be the first of two new water treatment facilities, with the second being constructed in Tulsa, Oklahoma. Craig McMahon, Amerex’s vice president of operations said, “We expect both plants to be operational before the end of the year, and based on communication with our customers in the area, we expect that we should be operating close to capacity within two-three months.”

Caraustar’s recycling plants receive award

Caraustar Industries announced that its Recovered Fiber Group’s seven recycling plants were presented with the 2006 No Actual Lost Work Day Case Award in the Recycle Collection category at the Pulp & Paper Safety Association’s (PPSA) 64th Annual Safety & Health Conference held in June. This award is presented to all member locations that complete a calendar year without incurring an injury that results in days away from work. The PPSA’s awards program provides a prestigious form of recognition to outstanding short-term and long-term safety performance by operating categories.

Nucor to acquire LMP Steel & Wire Company

Nucor Corporation has entered into an agreement to acquire substantially all of the assets of LMP Steel & Wire Company (LMP) for a cash purchase price of approximately $28 million. The transaction is expected to close during the third quarter of 2007 and is expected to be immediately accretive to earnings.

Located in Maryville, Missouri, LMP is a producer of cold finished bar and operates related businesses in North America. With approximately 100,000 tons of capacity and 155 employees, LMP is a significant player in the cold finish industry.

Organics recovery subcommittee developed

The Virginia Recycling Association (VRA) announced the development of a subcommittee that will promote organics recovery and composting in the Commonwealth.

The Virginia Department of Environmental Quality reports that 25% of waste landfilled in the state is organic. The goal of the subcommittee will be to encourage increased recovery and create value-added end-markets for this material. The subcommittee intends to work with local jurisdictions, state and federal agencies as well as retailers, farmers, vineyards, restaurants, cafeterias, lawn care providers and others to encourage pilot programs and partnerships to reduce the amount of material going to disposal.

Waste Haulers acquires WE Dispose LLC

Waste Haulers LLC announced the acquisition of the assets of WE Dispose LLC, located in Rhode Island.

According to Pat Sperduto, president of Waste Haulers, the acquisition will allow them to focus on the waste management needs of Providence businesses.

Waste Management reports decreased profits in quarter

Waste Management, Inc. announced financial results for its second quarter ended June 30, 2007. Net income for the quarter was $338 million, or $0.64 per diluted share, compared with $417 million, or $0.76 per diluted share in the prior year period.

Waste Management noted several items that impacted the results in the current and prior years’ second quarters. Excluding these items, net income would have been $0.56 per diluted share in the second quarter of 2007 compared with $0.45 per diluted share in the prior year quarter, or a 24% increase in earnings per diluted share.

The Company noted the following items that impacted the results for the quarter:

A $24 million benefit in net income primarily resulting from income tax audit settlements and adjustments to deferred taxes arising from legislative changes.

An after-tax benefit of $18 million due to gains on the divestitures of operations.

Combined, these items improved second quarter 2007 after-tax earnings by $42 million. Without these items, net income for the quarter would have been $296 million, or $0.56 per diluted share.

Revenues for the quarter were $3.36 billion as compared with $3.41 billion last year, a decline of $52 million, as the Company continued to execute its strategy to divest underperforming operations. Excluding the divestiture of underperforming operations representing $104 million of second quarter 2006 revenues, second quarter 2007 revenues would have been up $52 million on a year-over-year basis.

Waste Services sets record

Waste Services, Inc. announced financial results for quarter ended June 30, 2007. Highlights include:

  • Revenue from continuing operations was up 25.6% to $126.2 million compared to $100.5 million in 2006.
  • Internal revenue growth was 5.0%, made up of 4.7% price, 0.3% volume.
  • Acquisitions net of divestitures added $21.0 million of revenue or 20.9%, while the expiration of low margin municipal contracts net of new higher margin municipal contracts accounted for a $1.0 million reduction or 1.0%.
  • Operating income and EBITDA expanded to $13.1 million and $28.2 million with margins improving to 10.4% and 22.4%, respectively.
  • In the quarter the company completed the acquisition of USA Recycling and announced the exchange transaction with Waste Corp of America for additional Florida assets.

Year-to-date highlights include:

  • Revenue growth of 21.1% to $227.6 million compared to $188.0 million in 2006.
  • Internal revenue growth was 5.7%, made up of 5.1% price, 0.5% fuel and 0.1% volume.
  • Acquisitions net of divestitures added $29.4 million of revenue or 15.6%, while the expiration of low margin municipal contracts net of new higher margin municipal contracts accounted for a $1.6 million reduction or 0.9%.
  • Operating income and EBITDA expanded to $21.0 million and $48.1 million with margins improving to 9.2% and 21.1%, respectively.

Allied Waste posts strong second quarter results

Allied Waste Industries, Inc. reported financial results for its second quarter ended June 30, 2007.

Revenue for the second quarter ended June 30, 2007, was $1.56 billion, an increase of $35.3 million, or 2.3%, from $1.52 billion in the second quarter 2006. The increase in revenue resulted from internal growth of 2.7%, comprised of a 6.0% increase in same-store average unit price, including a 0.5% increase associated with a fuel recovery fee, partially offset by a 3.3% decrease in same-store volumes.

Operating income for the second quarter increased 10.8% to $278.1 million, compared with $251.0 million last year. Operating income as a percent of revenue increased 130 basis points to 17.8%, compared with 16.5% for the same period last year, as lower cost of operations and depreciation and amortization expenses were partially offset by higher SG&A expenses.

Second quarter 2007 income from continuing operations was $91.7 million, or $0.21 per share, including approximately a $.02 per share benefit from the favorable resolution on an income tax matter. Second quarter 2006 income from continuing operations was $36.5 million, or $0.07 per share, inclusive of $40.8 million, or $.06 per share, for fees and expenses associated with a debt refinancing completed during the period.

Covanta posts positive results

Covanta Holding Corporation reported financial results for the three months ended June 30, 2007. Diluted earnings per share was $.24 in the second quarter of 2007, which included a net benefit of $.03 per diluted share from insurance recoveries and expenses relating to a fire at the SEMASS facility which occurred in the first quarter of 2007.

For the three months ended June 30, 2007 total Company operating revenues grew 6 percent to $355 million, up from $334 million in the prior year comparative period.

The Company’s domestic waste and energy operating revenues grew 5 percent to $301 million, driven primarily by contractual service fee escalations, construction revenues related to the Hillsborough County facility expansion and two facilities added to the company’s portfolio this year; the Harrisburg Energy-from-Waste facility and the Holliston transfer station. International revenues of $52 million grew by 17 percent primarily due to higher electricity sales at both facilities.

Adjusted EBITDA at the Company’s principal subsidiary Covanta Energy Corporation (Covanta Energy) was $141 million in the second quarter.

For the six months ended June 30, 2007, total Company operating revenues rose 7 percent to $685 million. Covanta Energy’s Adjusted EBITDA was $246 million while Covanta’s Operating Cash Flow was $143 million for the year-to- date period.

Waste Connections reports second quarter 2007 results

Waste Connections, Inc. announced its results for the second quarter 2007. Revenue totaled $241.1 million, a 16.5% increase over revenue of $207.0 million in the year ago period. Operating income was $53.8 million, a 31.8% increase over the second quarter of 2006. Net income in the quarter was $25.3 million.

For the six months ended June 30, 2007, revenue was $460.0 million, a 15.8% increase over revenue of $397.1 million in the year ago period. Operating income was $100.2 million, a 25.3% increase over operating income of $80.0 million for the same period in 2006. Net income for the six months ended June 30, 2007, was $47.6 million, or $0.67 per share on a diluted basis of 70.6 million shares.

Republic Services reports recent quarterly results

Republic Services, Inc. reported net income of $87.2 million, or $0.45 per diluted share, for the three months ended June 30, 2007, versus $70.8 million, or $0.35 per diluted share, for the comparable period last year.

Net income for the three months ended June 30, 2007 includes a tax benefit of $5.0 million, or approximately $.03 per diluted share.

Revenue in the second quarter of 2007 grew to $808.4 million from $779.8 million for the same period in 2006. Internal growth was 4.1 percent, consisting of a 5.2 percent price increase and a 1.1 percent volume decline. Operating income for the three months ended June 30, 2007 increased $19.1 million or 14.3 percent to $153.1 million, compared to $134.0 million for the same quarter last year. Operating margin for the three months ended June 30, 2007 increased to 18.9 percent from 17.2 percent for same period in 2006.

For the six months ended June 30, 2007, net income was $141.1 million, or $0.72 per diluted share, compared to $135.4 million, or $0.66 per diluted share, for the comparable period last year. Revenue for the six months ended June 30, 2007 was $1,574.0 million compared to $1,517.3 million for the same period in 2006.

WCA Waste reports revenue gain for quarter

WCA Waste Corporation announced financial results for the second quarter of 2007.

For the quarter ended June 30, 2007, revenue increased 20.9% to $46.2 million over the $38.2 million that was reported for the same period last year.

Operating income for the quarter was $6.2 million versus $6.8 million for the comparable quarter last year. Second quarter 2007 operating income was impacted by two major accidents, integration costs in Oklahoma (assets acquired February 21, 2007), and extraordinary weather that created flooding in several large markets.

Net income available to common stockholders was $1.6 million, or $0.10 per share, for the three months ended June 30, 2007. The results included an unrealized gain of $1.4 million, net of tax, from the interest rate swap agreements.

For the six months ended June 30, 2007, revenue increased 19.1% to $86.8 million over the $72.9 million for the same period last year.

Operating income increased 6.6% to $12.7 million over the $11.9 million for the six months ended June 30, 2006. Net income for the six months ended June 30, 2007 was $2.0 million, or $0.12 per share.

RedBox+ signs agreement with Wastequip

RedBox+ announced that they have signed an exclusive manufacturing agreement with Wastequip, a national manufacturer of waste handling equipment.

“This agreement allows RedBox+ the opportunity to partner with a large, industry leading company,” says Jeff Matejka, owner of RedBox+.

The new, exclusive manufacturing agreement with Wastequip will permit RedBox+ to ship their products nationwide at a more economical price. In addition, by utilizing Wastequip’s national footprint, RedBox+ will be approved for expansion of manufacturing capabilities on future products.

New Mountain Capital makes major investment in Oakleaf

Oakleaf Global Holdings, Inc. (Oakleaf) announced that New Mountain Partners II, L.P. and New Mountain Partners III, L.P., private equity funds sponsored by New Mountain Capital, LLC (New Mountain), are making a major growth capital investment in Oakleaf.

New Mountain is purchasing shares in the Company from Charterhouse Group (Charterhouse) and other shareholders. Oakleaf’s senior management is also making a substantial equity investment in the business alongside New Mountain. The transaction is scheduled to close in August.

New Mountain is providing Oakleaf with significant financial and strategic resources to help the Company continue its growth.

Jim Barnes, chief executive officer of Oakleaf, said, “The Oakleaf management team enthusiastically welcomes this partnership with New Mountain.”