American Ecology Addresses Nasdaq Staff Deficiency Letter; Director Kenneth Leung to Leave Compensation Committee at May Board Meeting

Business Wire, May 1, 2006

BOISE, Idaho -- On April 26, 2006, American Ecology Corporation (Nasdaq:ECOL) received a Nasdaq staff deficiency letter indicating that it does not meet the requirements for independent director approval of executive compensation for continued listing set forth in Marketplace Rule 4350(c)(3). Kenneth Leung, chairman of the Company's compensation committee, ceased being an independent director on March 29, 2006, when Sanders Morris Harris (where Mr. Leung serves as a Managing Director) entered an agreement with the Company for financial advisory services. The Company will address the Rule 4350(c)(3) deficiency, pursuant to a prior agreement with Mr. Leung, whereby he will decline reappointment to the compensation committee when the newly elected Board of Directors meets and sets committee membership following the Company's May 25, 2006, annual shareholders meeting. The Compensation Committee has not met since March 29, 2006, and will not meet prior to May 25, 2006.

American Ecology Corporation, through its subsidiaries, provides radioactive, PCB, hazardous and non-hazardous waste services to commercial and government customers throughout the United States, such as nuclear power plants, steel mills, medical and academic institutions, refineries and chemical manufacturing facilities. Headquartered in Boise, Idaho, the Company is the nation's oldest radioactive and hazardous waste services provider, having operated for more than fifty years.

This press release contains forward-looking statements that are based on our current expectations, beliefs and assumptions about the industry and markets in which American Ecology Corporation and its subsidiaries operate. Actual results may differ materially from what is expressed herein and no assurance can be given that the company's response will fully address the Nasdaq staff deficiency letter. For information on other factors that could cause actual results to differ from expectations please refer to American Ecology Corporation's 2005 Annual Report on Form 10-K and quarterly report on Form 10-Q filed with the Securities and Exchange Commission on May 1, 2006.