Perma-Fix Announces Results for the Second Quarter of Fiscal 2008

ATLANTA, Aug. 7 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI) today announced results for the second quarter ended June 30, 2008.

Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, "Revenue within our Nuclear Segment increased by 15 percent over the second quarter of last year. Our results included a full quarter of operation for the Perma-Fix Northwest facility, which was acquired in June 2007. Overall, we were pleased with our results in light of the temporary slowdown of clean- up and remediation that we have seen throughout the Department of Energy (DOE). Additionally, we look forward to benefitting from our recently announced participation in the DOE Plateau Remediation Contract at the Hanford site in Richland, Washington, which will commence in October 2008."

Dr. Centofanti continued, "Regarding the Plateau Remediation Contract, our M&EC subsidiary will provide its waste facility operations expertise to support the clean up from decades of plutonium production from the U.S. national defense program, while our Perma-Fix Northwest treatment facility, located adjacent to the Hanford site, will also provide local support for the contract. Although our share of the DOE estimated $4.5 billion ten-year general contract cannot be fully determined at this time, we believe that once we begin full operation under our subcontract, we will recognize revenue of approximately $40 million to $50 million per year for on-site and off-site work under this subcontract. Participating in the on-site work should enable us to accelerate the flow of mixed waste to our multiple off-site treatment facilities."

"We have also taken an important step forward with the granting of a draft permit from the U.S. Environmental Protection Agency (EPA) for the treatment of radioactive polychlorinated biphenyls (PCBs). We cannot take any action as to the treatment of radioactive PCBs until we receive the final permit. However, there are enormous barriers to entry in this market and once we obtain the long-awaited permit, it will be a milestone for us. Once the final permit is issued, Perma-Fix would be the only commercial entity authorized in the U.S. to treat radioactive PCBs. We believe that the EPA will likely grant our permit during the second half of 2008, which would open up a sizeable untapped government and commercial market to us."

Dr. Centofanti concluded, "Another key initiative for Perma-Fix has been the divestiture of our various industrial waste facilities. We made progress on this front with the sale of our Tulsa Industrial facility in June 2008 for approximately $1.5 million in cash, subject to certain working capital adjustments (paid to the buyer in the third quarter of 2008 of $135,000) and the assumption of certain liabilities. This marks the third industrial facility that we have sold, thus far. As previously reported, the Industrial Segment of Perma-Fix has been re-classified as discontinued operations."

Financial Results

Revenue for the second quarter of 2008 was $15.8 million, versus $13.5 million for the same period last year. Revenue for the Nuclear Segment increased to $15.0 million versus $13.0 million for the same period last year. The second quarter of 2008 included a full quarter of operation for the Perma- Fix Northwest facility, which was acquired in June 2007. Revenue from the Engineering Segment was $789,000 versus $532,000 for the same period last year. Operating income from continuing operations for the second quarter was $399,000 versus operating income of $752,000 for the same period last year. The decrease in operating income primarily reflects the lower volume of waste received and lower margin waste treated within the Nuclear Segment. Loss from discontinued operations, net of taxes, totaled $49,000 for the second quarter of 2008 compared to an income of $470,000 for the same period last year. Net income applicable to common stockholders for the second quarter of 2008 was $458,000, or $0.01 per share, versus net income of $1.2 million or $0.02 per share, for the same period last year. Net income applicable to common stockholders for the second quarter of 2008 included a gain on disposal of discontinued operations, net of taxes, of $108,000.

The company had EBITDA of $1.9 million during the quarter ended June 30, 2008, as compared to EBITDA of approximately $1.9 million for the same period of 2007. The company defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is not a measure of performance calculated in accordance with accounting principles generally accepted in the United States ("GAAP"), and should not be considered in isolation of, or as a substitute for, earnings as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. The company believes the presentation of EBITDA is relevant and useful by enhancing the readers' ability to understand the company's operating performance. The company's management utilizes EBITDA as a means to measure performance. The company's measurements of EBITDA may not be comparable to similar titled measures reported by other companies. The table below reconciles EBITDA, a non-GAAP measure, to net income for the three and six months ended June 30, 2008 and 2007.


                                             Quarter Ended   Six Months Ended
                                                June 30,          June 30,
    (In thousands)                           2008     2007     2008     2007
    Net (loss) Income                        $399     $752      $71   $1,335


    Adjustments:
      Depreciation & Amortization           1,117      857    2,238    1,628
      Interest Income                         (49)     (78)    (117)    (166)
      Interest Expense                        325      272      678      473
      Interest Expense - Financing Fees        57       48      110       96
      Income Tax Expense                        3       58        3      183

    EBITDA                                 $1,852   $1,909   $2,983   $3,549

The tables below present certain financial information for the business segments, excluding allocation of corporate expenses:


                                    Quarter Ended         Six Months Ended
                                    June 30, 2008           June 30, 2008
    (In thousands)              Nuclear   Engineering   Nuclear   Engineering
    Net revenues                $15,009          $789   $28,991        $1,691
    Gross profit                  4,557           328     8,112           584
    Segment profit                1,763           134     2,739           262

                                    Quarter Ended         Six Months Ended
                                    June 30, 2007           June 30, 2007
    (In thousands)              Nuclear   Engineering   Nuclear   Engineering
    Net revenues                $13,005          $532   $25,349        $1,109
    Gross profit                  4,639           165     9,071           333
    Segment profit                2,295            43     4,305            92

About Perma-Fix Environmental Services

Perma-Fix Environmental Services, Inc., a national environmental services company, provides unique mixed waste and industrial waste management services. The company's increased focus on nuclear services includes radioactive and mixed waste treatment services for hospitals, research labs and institutions, federal agencies, including DOE, DOD, and nuclear utilities. The company's industrial services treat hazardous and non-hazardous waste for a variety of customers including, Fortune 500 companies, federal, state and local agencies and thousands of other clients. Nationwide, the company operates nine major waste treatment facilities.

This press release contains "forward-looking statements" which are based largely on the company's expectations and are subject to various business risks and uncertainties, certain of which are beyond the company's control. Forward-looking statements include, but are not limited to, benefitting from our participation in the DDE Plateau Remediation Contract at the Hanford site; anticipated revenues to us of approximately $40 to $50 million a year under our subcontract relating to the Plateau Remediation Contract once we are in full operation under our subcontract; believe we will obtain the final radioactive PCB permit during the second half of 2008; once a final permit is issued to us, we will be the only commercial entity authorized in the U.S. to treat radioactive PCBs; we expect EPA to grant the final radioactive PCB permit to us during the second quarter 2008, which we believe will open up a sizeable untapped market for us. These forward-looking statements are intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. While the company believes the expectations reflected in this news release are reasonable, it can give no assurance such expectations will prove to be correct. There are a variety of factors which could cause future outcomes to differ materially from those described in this release, including, without limitation, future economic conditions; industry conditions; competitive pressures; and our ability to apply and market our technologies; that neither the federal government nor any other party to a subcontract involving the federal government terminates or renegotiates any material contract granted to us prior to expiration of the term of the contract, as such contracts are generally terminable or renegotiable on 30 day notice, at the government's option; or the government or such other party to a contract granted to us fails to abide by or comply with the contract or to deliver waste as anticipated under the contract; that Congress provides funding for the new remediation projects; receipt of a final permit from the EPA relative to treatment of radioactive PCBs; and the additional factors referred to under "Special Note Regarding Forward-Looking Statements" of our 2007 Form 10-K/A and the Forward-Looking Statements discussed in our Form 10-Q for the quarter ending March 31, 2008.. The company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that bear upon forward-looking statements.

Please visit us on the World Wide Web at http://www.perma-fix.com.


                           FINANCIAL TABLES FOLLOW



                    PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)

                                          Three Months Ended  Six Months Ended
    (Amounts in Thousands, Except                June 30,          June 30,
     for Per Share Amounts)                   2008     2007     2008     2007

    Net revenues                           $15,798  $13,537  $30,682  $26,458
    Cost of goods sold                      10,913    8,733   21,986   17,054
      Gross profit                           4,885    4,804    8,696    9,404

    Selling, general and administrative
     expenses                                3,996    3,759    7,803    7,474
    Loss on disposal of property and
     equipment                                 142        2      142        2
      Income from operations                   747    1,043      751    1,928

    Other income (expense):
    Interest income                             49       78      117      166
    Interest expense                          (325)    (272)    (678)    (473)
    Interest expense-financing fees            (57)     (48)    (110)     (96)
    Other                                      (12)       9       (6)      (7)
    Income from continuing operations
     before taxes                              402      810       74    1,518
    Income tax expense                           3       58        3      183
    Income from continuing operations          399      752       71    1,335

    (Loss) income from discontinued
     operations, net of taxes                  (49)     470     (760)  (1,197)
    Gain on disposal of discontinued
     operations, net of taxes                  108      3/4    2,216      3/4
      Net income                               458    1,222    1,527      138

    Preferred Stock dividends                  3/4      3/4      3/4      3/4
      Net income applicable to Common
       Stockholders                        $   458  $ 1,222  $ 1,527  $   138

    Net income (loss) per common share -
     basic
    Continuing operations                  $   .01  $   .01  $   3/4  $   .02
    Discontinued operations                    3/4      .01     (.01)    (.02)
    Disposal of discontinued operations        3/4      3/4      .04      3/4
      Net income per common share          $   .01  $   .02  $   .03  $   3/4

    Net income (loss) per common share -
     diluted
    Continuing operations                  $   .01  $   .01  $   3/4  $   .02
    Discontinued operations                    3/4      .01     (.01)    (.02)
    Disposal of discontinued operations        3/4      3/4      .04      3/4
      Net income per common share          $   .01  $   .02  $   .03  $   3/4

    Number of common shares used in
     computing net income (loss) per share:
    Basic                                   53,729   52,131   53,717   52,097
    Diluted                                 54,173   53,601   54,035   53,333




                    PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                          CONSOLIDATED BALANCE SHEET



                                                      June 30,
    (Amounts in Thousands, Except for                   2008      December 31,
     Share Amounts)                                  (Unaudited)      2007

    ASSETS
    Current assets:
      Cash & equivalents                                   $76          $137
      Account receivable, net of allowance for
       doubtful accounts of $126 and $138                9,086        13,536
      Unbilled receivables                               9,358        10,321
      Other current assets                               1,957         3,403
      Assets of discontinued operations included
       in current assets, net of allowance for
       doubtful accounts of $29 and $269                 1,998         5,197
        Total current assets                            22,475        32,594

    Net property and equipment                          45,494        47,309
    Property and equipment of discontinued
     operations, net of accumulated depreciation
     of $3,521 and $12,408                               3,521         6,775
    Intangibles and other assets                        41,000        36,984
    Intangible and other assets of discontinued
     operations                                          1,190         2,369
        Total assets                                  $113,680      $126,031


    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities                                 28,786        41,389
    Current liabilities related to discontinued
     operations                                          3,553         8,359
        Total current liabilities                       32,339        49,748

    Long-term liabilities                               16,724        12,680
    Long-term liabilities related to discontinued
     operations                                          2,745         3,590
        Total liabilities                               51,808        66,018
    Commitments and Contingencies
    Preferred Stock of subsidiary, $1.00 par value;
     1,467,396 shares authorized, 1,284,730 shares
     issued and outstanding, liquidation value $1.00
     per share                                           1,285         1,285
    Stockholders' equity:
      Preferred Stock, $.001 par value; 2,000,000
       shares authorized, no shares issued and
       outstanding                                           -             -
      Common Stock, $.001 par value; 75,000,000
       shares authorized, 53,762,850 and 53,704,516
       shares issued and outstanding, respectively          54            54
      Additional paid-in capital                        96,716        96,409
      Stock subscription receivable                          -           (25)
      Accumulated deficit                              (36,183)      (37,710)
        Total stockholders' equity                      60,587        58,728
          Total liabilities and stockholders' equity  $113,680      $126,031

SOURCE: Perma-Fix Environmental Services, Inc.

CONTACT:
Dr. Louis F. Centofanti
Chairman and CEO, Perma-Fix Environmental Services, Inc.
+1-770-587-5155
David K. Waldman-US Investor Relations, Crescendo Communications, LLC
+1-212-671-1020 x101
or
Herbert Strauss-European Investor Relations
+43-316-296-316
herbert@eu-ir.com
both for Perma-Fix Environmental Services, Inc.

Web site: http://www.perma-fix.com