Casella signs as 25-year operator of New York county landfill

Rutland, VT— Casella Waste Systems, Inc., a regional, non-hazardous solid waste services company, announced that the company has closed on its transaction with Chemung County, New York, completing the approval of an operating agreement that designates the company as the county’s twenty-five year partner to operate and develop the county’s Subtitle D landfill.

“This is a terrific opportunity for the company,” John Casella, chairman and CEO of Casella Waste Systems, said. “It is a superb facility in the heart of our western New York state market, and we are in partnership with thoughtful, far-sighted public policymakers.”

The Chemung County landfill is located in the Town of Chemung, New York. The company’s agreement with the county provides for the company to lease the facility and assume all operating, permitting and construction responsibility; the company began operation of the facility this week.

The company said the transaction included $4.7 million in initial consideration paid to Chemung County. Based on the landfill’s expected utilization rate of 120,000 tons of municipal solid waste (MSW) per year, the company expects the facility to contribute $780,000 of EBITDA* over the remainder of the company’s fiscal year 2006, which ends on April 30, 2006. The company will begin immediate efforts to re-permit the facility to allow it to accept up to 280,000 tons of MSW per year.