Perma-Fix Environmental Develops Hazardous Waste Treatment Process to Work on Organics

Business Wire, August 19, 1997

ATLANTA--(BUSINESS WIRE)--Aug. 19, 1997--

-- Reaches Agreement With the U.S. Dept. of Energy

for Further Testing --

Perma-Fix Environmental Services Inc. (NASDAQ:PESI) (GERMANY:PES.BE) has developed Perma-Fix II, a non-thermal hazardous waste treatment process to work on organics, it was announced Tuesday by Dr. Louis F. Centofanti, president.

According to Centofanti, the Perma-Fix II Process offers distinct advantages over incineration, a multi-billion dollar industry, against which the process will compete directly. Centofanti said: "Perma-Fix II dramatically increases our ability to compete in the mixed waste market. It also opens up new markets, including the chemical weapons destruction and hazardous waste markets. Furthermore, Perma-Fix II makes us highly competitive in these markets because, as our tests have proven, it's simpler, non-thermal, and can readily control emissions when compared to existing technologies."

Perma-Fix has signed an initial personnel exchange agreement with the U.S. Department of Energy's Lawrence Livermore National Laboratories ("LLNL") to assist in the further development of the Perma-Fix II Process technology. This agreement will allow for the immediate initiation of collaborative studies on the process, while concluding negotiations on a broader and more formal Cooperative Research and Development Agreement ("CRADA").

"The relationship with Lawrence Livermore National Laboratories will allow us to accelerate our understanding of the process and its potential effects on the mixed waste market," Centofanti continued. "The technical expertise at Lawrence Livermore is impossible for us to duplicate."

A 1,200-ton-per-year pilot plant under construction at the company's North Florida treatment facility is expected to begin operation and testing in the first quarter of 1998. The unit will treat soils, debris and solids contaminated with organic materials. It will focus initially on the mixed waste market where a lack of commercial incineration capacity exists. When operational, the unit could generate up to $5 million in revenue. The company also plans to explore other markets.

Perma-Fix II is a non-thermal, water-based chemical destruction technology that destroys organic contaminants, especially in soils, solids, sludges and liquids. The process has been used successfully on a laboratory scale to treat a wide variety of organic contaminants, including hydrocarbons, chlorinated and F-listed materials (hazardous components). Due to its low temperature and design, the process should be able to control emissions of volatile radioactive isotopes, including C14 and tritium. The previously developed Perma-Fix Process(r) treats acids, bases and metal wastes found in nuclear and medical mixed wastes.

Perma-Fix has filed for patents on the new process.

Statements contained in this release other than statements of historical fact are forward-looking statements that are subject to known and unknown risks, uncertainties and other factors which could cause actual results to differ materially from such statements. The results of such forward-looking statements could differ from those contained herein if, among other things, the company is unable to finance or complete construction of the pilot plant, or such is not completed when anticipated; the company is unable to develop the Perma-Fix II Process for commercial use or that such process is accepted by the market; the process does not meet treatment or emission standards, or such standards are changed or modified; permitting requirements or market conditions change; or the company is unable to finalize certain agreements or obtain processing contracts. The company undertakes no obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise.

Perma-Fix Environmental Services Inc. provides hazardous, mixed and industrial waste management services, along with environmental engineering and consulting services. The company is widely recognized for meeting customer needs with technologically advanced alternatives to traditional landfill and incineration methods.

CONTACT: Piedmont Consulting Inc. -- Investor Relations

Telephone 404/233-6999

or

Karl H. Ehlert -- Conseiller

Telephone (011) 34-71 825719

or

Perma-Fix Environmental Services Inc.

Dr. Louis F. Centofanti, 404/847-9990