Waste Management Inc. Completes Sale of Assets in Hong Kong and Brazil to Vivendi Environnement S.A

Business Wire, Dec 21, 2000

Business Editors

HOUSTON--(BUSINESS WIRE)--Dec. 21, 2000

Waste Management Inc. (NYSE:WMI) announced today that its wholly owned subsidiaries have completed the sale of its waste services operations in Hong Kong and Brazil to waste services subsidiaries of Vivendi Environnement S.A. for $136 million.

The sales include all of the Company's hazardous and solid waste operations in both Hong Kong and Brazil and stem from Waste Management's strategy to re-focus the Company on its North American waste operations. Over the past year, Waste Management has implemented a plan to divest international and non-core North American assets. The Company noted that this sale brings the total proceeds received from the divestiture program to approximately $2.5 billion, and essentially completes the sale of its international assets.

A. Maurice Myers, president and chief executive officer of Waste Management, said: "With our stated goal of obtaining total proceeds of $2.75 billion from the divestiture program, we have now collected in excess of 90 percent of that targeted amount. The remaining proceeds will largely come from the sale of some non-core domestic assets, such as the previously announced sale of several independent power plants. The asset sales have gone as we expected and will allow the Company to move into 2001 focused on its core North American solid waste business."

Waste Management Inc. is its industry's leading provider of comprehensive waste management services. Based in Houston, the Company serves municipal, commercial, industrial and residential customers throughout North America.

Certain statements provided in this release include statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements, and all phases of Waste Management Inc.'s operations, are subject to risks and uncertainties, any one of which could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include or relate to, among other things:

-- the impact of pending or threatened litigation and/or governmental inquiries
and investigation involving the Company.

-- the Company's ability to stabilize its accounting systems and procedures and
maintain stability.

-- the uncertainties relating to the Company's proposed strategic initiative,
including the willingness of prospective purchasers to purchase the assets the
Company identified as divestiture candidates on terms the Company finds
acceptable, the timing and terms on which such assets may be sold,
uncertainties relating to regulatory approvals and other factors affecting the
ability to prospective purchasers to consummate such transactions, including
the availability of financing and uncertainties relating to the impact of the
proposed strategic initiative on the Company's credit ratings and consequently
the availability and cost of debt and equity financing to the Company.

-- the Company's ability to successfully integrate the operations of acquired
companies with its existing operations, including risks and uncertainties
relating to its ability to achieve projected earnings estimates, achieve
administrative and operating cost savings and anticipated synergies,
rationalize collection routes, and generally capitalize on its asset base and
strategic position through its strategy of decentralized decision making; and
the risks and uncertainties regarding government-forced divestitures.

-- the Company's ability to continue its expansion through the acquisition of
other companies, including, without limitation, risks and uncertainties
concerning the availability of desirable acquisition candidates, the
availability of debt and equity capital to the Company to finance acquisitions,
the ability of the Company to accurately assess the pre-existing liabilities
and assets of acquisition candidates and the restraints imposed by federal and
state statutes and agencies respecting market concentration and competitive
behavior.

-- the effect of competition on the Company's ability to maintain margins on
existing or acquired operations, including uncertainties relating to
competition with government owned and operated landfills which enjoy certain
competitive advantages from tax-exempt financing and tax revenue subsidies.

-- the potential impact of environmental and other regulation on the Company's
business, including risks and uncertainties concerning the ultimate cost to the
Company of complying with final closure requirements and post-closure
liabilities associated with its landfills and other environmental liabilities
associated with disposal at third party landfills and the ability to obtain and
maintain permits necessary to operate its facilities, which may impact the
life, operating capacity and profitability of its landfills and other
facilities.

-- the Company's ability to generate sufficient cash flows from operations to
cover its cash needs, the company's ability to obtain additional capital if
needed and the possible default under credit facilities if cash flows are lower
than expected or capital expenditures are greater than expected.

-- the potential changes in estimates from ongoing analysis of site remediation
requirements, final closure and post-closure issues, compliance and other
audits and regulatory developments.

-- the effectiveness of changes in management and the ability of the Company to
retain qualified individuals to serve in senior management positions.

-- the effect of price fluctuations of recyclable materials processed by the
Company.

-- certain risks that are inherent in operating in foreign countries that are
beyond the control of the Company, including but not limited to political,
social, and economic instability and government regulations.

-- the potential impairment charges against earnings related to long-lived
assets which may result from possible future business events.

-- the effect that recent trends regarding mandating recycling, waste reduction
at the source and prohibiting the disposal of certain types of wastes could
have on volumes of waste going to landfills and waste-to-energy facilities.

-- the potential impact of government regulation on the Company's ability to
obtain and maintain necessary permits and approvals required for operations.