Casella Waste announces acquisition of Blue Mountain Recycling

Rutland, VT— Casella Waste Systems, Inc. announced the acquisition of Philadelphia-based Blue Mountain Recycling, LLC. Blue Mountain Recycling, which has single stream processing facilities in Philadelphia and Montgomeryville, Pennsylvania, has an exclusive processing partnership with RecycleBank LLC, an incentive-based recycling service that gives homeowners credits for recycling which can be used with participating merchants.

As part of the agreement, RecycleBank LLC has agreed to extend their processing agreement and strategic relationship with Blue Mountain Recycling to Casella Waste Systems.

Casella Waste Systems believes the transaction gives it a strategic opportunity to increase the utilization of its network of recycling assets, as well as provide a significant marketing advantage in providing services to municipalities and developing solid waste management infrastructure through public/private partnerships.

Casella Waste Systems purchased the equity of Blue Mountain Recycling, LLC. The transaction included $15 million in initial consideration; total consideration will be based on the attainment of targeted levels of EBITDA and free cash flows and the accomplishment of certain strategic initiatives over the next few years.

For the remainder of Casella Waste Systems’ fiscal year, Blue Mountain Recycling is projecting EBITDA* of $1.7 million.

The acquisition and agreement provides Casella Waste Systems with exclusive processing rights to RecycleBank material anywhere in North America, as well as co-marketing rights.

Blue Mountain Recycling’s current management team will be joining Casella Waste Systems and will remain in place, with responsibility to operate and grow that segment of the business, the company said.

The transaction was effective September 19, 2005.