UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET December 31, 1998 (Amounts In Thousands) Perma-Fix Chem-Con Environment Combined Pro 12/31/98 9/30/98 Adjustment Forma ___________ ________ _____________ ________ ASSETS Current Assets: Cash and cash equivalents $776 $334 ($1,000)(c) $110 Restricted Cash equivalents and investment 111 494 605 Accounts Receivable, net of allowance for doubtful accounts 5,950 5,043 10,993 Inventories 145 145 Prepaid Expenses 471 28 499 Other Receivables 11 26 37 Assets of discontinued operations 489 489 _____ _____ ______ ______ Total Current Assets 7,953 5,925 (1,000) 12,878 Property and equipment: 17,741 18,522 2,533(a),(b), 38,796 (c) Less accumulated depreciation (5,836) (11,886) (17,722) _____ _____ ______ ______ Net property and equipment 11,905 6,636 2,533 21,074 Intangibles and other assets: Permits, net of accumulated amortization 3,661 3,661 Note Receivable - Officer 1,065 (1,065)(b) 0 Goodwill, net of accumulated amortization 4,698 35 9,204(a),(c) 13,937 Other assets 531 1 532 Total other assets 8,890 1,101 8,139 18,130 _____ _____ ______ ______ Total Assets $28,748 $13,662 $9,672 $52,082 ====== ====== ====== ======

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET December 31, 1998 (Amounts In Thousands) Perma-Fix Chem-Con Environment Combined Pro 12/31/98 9/30/98 Adjustment Forma ___________ ________ _____________ ________ LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities: Accounts Payable $2,422 $1,573 $3,995 Accounts Payable-Intercompany 30 ($30)(c) 0 Accrued Expenses 3,369 1,113 433 (c) 4,915 Revolving loan and term note facility 625 500 (d) 1,125 Current portion of settlements payable 1,044 1,044 Current portion of long-term debt 302 2,482 (1,298)(c),(d) 1,486 Current liabilities of discon- tinued operations 863 863 ______ ______ ______ ______ Total current liabilities 7,581 6,242 (395) 13,428 Long-term Liabilities: Environmental accruals 520 4,430 4,950 Accrued closure costs 715 450 1,165 Long-term debt, less current portion 2,087 1,554 7,789 (a),(b), 11,430 Long-term portion of settlements payable 264 (c),(d) 264 Long-term liabilities of dis- continued operations 1,892 1,892 ______ ______ ______ ______ Total long-term liabilities 5,214 6,698 7,789 19,701 Stockholder's Equity Preferred Stock Common Stock 13 77 (76)(c) 14 Redeemable warrants 140 140 Additional paid-in capital 39,769 2,999 (c) 42,768 Accumulated Deficit (22,157) 645 (645)(c) (22,157) ______ ______ ______ ______ 17,765 722 2,278 20,765 Less Common Stock in treasury at cost; 943,000 shares issued and out- standing (1,812) (1,812) ______ ______ ______ ______ Total stockholder's equity 15,953 722 2,278 18,953 ______ ______ ______ ______ Total liabilities and stock- holder's equity $28,748 $13,662 $9,672 $52,082 ======= ====== ====== =======

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS For the year ended December 31, 1998 Perma-Fix Chem-Con (Amounts in Thousands, Environmental Combined Pro Except for Per Share Data) 12/31/98 9/30/98 Adjustment Forma _____________________________________________________________________________ REVENUES $30,551 $21,801 $52,352 COST OF GOODS SOLD 21,064 14,134 35,198 _______ _______ _______ GROSS PROFIT 9,487 7,667 17,154 SELLING, GENERAL AND ADMINI- STRATIVE 6,847 6,055 12,902 DEPRECIATION AND AMORTIZATION 2,109 799 $462(1) 3,370 _______ _______ ______ ______ INCOME (LOSS) FROM OPERATIONS 531 813 (462) 882 OTHER INCOME (EXPENSE): INTEREST INCOME 35 27 62 INTEREST EXPENSE (294) (360) (366)(2) (1,020) OTHER INCOME (EXPENSE) 190 190 _______ ______ _______ ______ NET INCOME (LOSS) 462 480 (828) 114 PREFERRED STOCK DIVIDENDS (1,160) (1,160) NET INCOME (LOSS) APPLIC- ABLE TO COMMON STOCK ($698) $480 ($828) ($1,046) ======= ====== ======= ======= Basic and diluted loss per common share: ($0.06) ($0.08) ======= ====== ======= ======= Weighted average number of common shares outstanding 12,028 1,500 * 13,528 ======= ====== ======= ======= *Assumes $2.00 share price (1) Adjusted for amortization of Goodwill for one year due to acquisition. (2) Adjusted for Interest Expense on additional Note Payable for acquisition.

See accompanying notes to unaudited pro forma condensed combined financial statements.

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET March 31, 1999 (Amounts In Thousands) Perma-Fix ChemCon Environmental Combined Pro 03/31/99 03/31/99 Adjustment Forma ___________ ________ _____________ ________ ASSETS Current Assets: Cash and cash equivalents $84 $184 ($1,000)(c) ($732) Restricted Cash equivalents and investment 112 471 583 Accounts Receivable, net of allowance for doubtful accounts 6,047 4,937 10,984 Inventories 163 163 Prepaid Expenses 1,262 28 1,290 Other Receivables 26 20 46 Assets of discontinued operations 456 456 ______ ______ _______ ______ Total Current Assets 8,150 5,640 (1,000) 12,790 Property and equipment: 18,138 17,911 2,644 (a),(b), 38,693 (c) Less accumulated depreci- ation (6,180) (11,403) (17,583) ______ ______ _______ ______ Net property and equipment 11,958 6,508 2,644 21,110 Intangibles and other assets: Permits, net of accumulated amortization 3,611 3,611 Note Receivable - Officer 1,065 (1,065)(b) 0 Goodwill, net of accumulated amortization 4,653 30 9,204 (a),(c) 13,887 Other assets 551 1 552 ______ ______ _______ ______ Total other assets 8,815 1,096 8,139 18,050 ______ ______ _______ ______ Total Assets $28,923 $13,244 $9,783 $51,950 ======= ====== ======= =======

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET March 31, 1999 (Amounts In Thousands) Perma-Fix ChemCon Environmental Combined Pro 03/31/99 03/31/99 Adjustment Forma ___________ ________ _____________ ________ LIABILITIES AND STOCKHOLDER'S EQUITY Current liabilities: Accounts Payable $2,909 $1,515 $4,424 Accounts Payable-Intercompany 11 (11)(c) 0 Accrued Expenses 3,521 1,192 433(c) 5,146 Current portion of settle- ments payable 1,044 1,044 Current portion of long-term debt 931 2,355 (798)(c),(d) 2,488 Current liabilities of dis- continued operations 496 496 ______ ______ ______ ______ Total current liabilities 7,857 6,117 (376) 13,598 Long-term Liabilities: Environmental accruals 484 4,430 4,914 Accrued closure costs 722 450 1,172 Long-term debt, less current portion 1,839 1,425 7,789(a),(b), 11,053 Long-term portion of settle- ments payable 192 (c),(d) 192 Long-term liabilities of dis- continued operations 1,884 1,884 ______ ______ ______ ______ Total long-term liabilities 4,929 6,497 7,789 19,215 Stockholder's Equity Preferred Stock Common Stock 14 77 (76)(c) 15 Redeemable warrants 140 140 Additional paid-in capital 39,938 2,999(c) 42,937 Accumulated Deficit (22,143) 553 (553)(c) (22,143) ______ ______ ______ ______ 17,949 630 2,370 20,949 Less Common Stock in treasury at cost; 943 shares issued and outstanding (1,812) (1,812) ______ ______ ______ ______ Total stockholder's equity 16,137 630 2,370 19,137 ______ ______ ______ ______ Total liabilities and stock- holder's equity $28,923 $13,244 $9,783 $51,950 ====== ====== ====== ======

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS For the quarter ended March 31, 1999 Perma-Fix ChemCon (Amounts in Thousands, Environmental Combined Pro Except for Per Share Data) 03/31/99 03/31/99 Adjustment Forma _____________________________________________________________________________ REVENUES 7,812 5,079 12,891 COST OF GOODS SOLD 5,290 3,607 8,897 ______ ______ ______ ______ GROSS PROFIT 2,522 1,472 0 3,994 SELLING, GENERAL AND ADMINI- STRATIVE 1,838 1,756 3,594 DEPRECIATION AND AMORTIZATION 519 138 115(1) 772 ______ ______ ______ ______ INCOME (LOSS) FROM OPERATIONS 165 (422) (115) (372) OTHER INCOME (EXPENSE): INTEREST INCOME 7 50 57 INTEREST EXPENSE (27) (63) (92)(2) (182) OTHER INCOME (EXPENSE) (14) (21) (35) ______ ______ ______ ______ NET INCOME (LOSS) 131 (456) (207) (532) PREFERRED STOCK DIVIDENDS (117) (117) ______ ______ ______ ______ NET INCOME (LOSS) APPLICABLE TO COMMON STOCK 14 (456) (207) (649) ===== ===== ====== ===== Basic and diluted loss per common share: 0.00 (0.05) Weighted average number of common shares out 12,372 1,500 * 13,872 *Assumes $2.00 share price (1) Adjusted for amortization of Goodwill for one quarter due to acquisition. (2) Adjusted for Interest Expense on additional Note Payable for acquisition.

See accompanying notes to unaudited pro forma condensed combined financial statements. Notes to Unaudited Pro Forma Condensed Combined Financial Statements Note I - Basis of Presentation The unaudited pro forma balance sheet combines the historical consolidated balance sheet of Perma-Fix Environmental Services, Inc. at March 31, 1999, with the historical combined balance sheet of Chem-Con at March 31, 1999. The unaudited pro forma statements of income combine the historical consolidated statements of operations of Perma-Fix Environmental Services, Inc. for the quarter ended March 31, 1999, with the historical combined statements of income for Chem-Con for the quarter ended March 31, 1999. Certain amounts reflected in the historical financial statement presentations of both companies have been reclassified to conform to the unaudited pro forma condensed combined presentation. The unaudited pro forma financial statements exclude the effect of any operating income improvements which may be achieved upon combining the resources of the companies and exclude costs associated with the integration and consolidation of the companies which are not presently estimable. Note 2 - Significant Accounting Policies Beginning January 1, 1999, Chem-Con's income, which had previously been reported with a fiscal year end September 30, are now included based on fiscal year end December 31. December 1998 results from these operations are included in retained earnings. The unaudited pro forma income statements for the quarter ended March 31, 1999 does not reflect the three months ended December 31, 1998, for Chem-Con. For the quarter ended December 31, 1998, Chem-Con reported unaudited revenues of $5,887,000 and unaudited net income of $412,000. Note 3 - Pro Forma Adjustments Perma-Fix Environmental Services, Inc. anticipates the acquisition of Chem-Con during the second quarter of 1999, in a transaction accounted for as a purchase. The pro forma adjustments are comprised of the following: (a) Land located in Orlando, Florida with a fair market value of $1,230,000 and related mortgages of $222,000 were contributed by the Chem-Con stockholder in connection with the acquisition. (b) The officer note receivable was forgiven in exchange for certain land and buildings of $700.000 and payoff of certain debt related to the land of $365,000. (c) This transaction is accounted for as a purchase transaction and therefore, goodwill is recorded for the difference between assets acquired and liabilities assumed according to the terms and conditions of the purchase contract. * All prior goodwill was written off Chem-Con's books * Goodwill was recorded at $9,239,000 with a life of 20 years * Debt was recorded in the amount of $4,700,000 pursuant to the merger agreement, the additional draw on the revolving line of credit of $2,231,000 was recognized, and unrecorded debt in the amount of $172,000 was booked. * All stockholder's equity accounts of Chem-Con were eliminated * Stockholder's equity was recorded for the $3,000,000 of common stock to be issued in the purchase at a guaranteed stock price of $2.00 per share * Closing costs are estimated at $500,000 * Chem-Met land and building was wriiten up by $1,505,000 to fair market value of $1,918,000. (d) It is assumed that the current Charter National Bank and the SBA debt of Chem-Con will be replaced by Congress Financial and reclassified between current and long-term. Note 4 - Federal Income Tax Consequences of the Merger The unaudited pro forma financial statements assume that the merger qualifies as a taxable transaction for federal income tax purposes.