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

ATLANTA, May 8 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI) today announced results for the first quarter ended March 31, 2008.

Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, "Revenues within our Nuclear Segment increased by 13 percent over the same period last year, aided by the acquisition of our new Perma-Fix Northwest facility during the second quarter of 2007. This was offset by a decline in gross margin, attributable to the shift in product mix towards lower margin waste streams. This shift in product mix was largely due to the continued slowdown of several large projects within the Department of Energy (DOE) as the new bidding cycle is underway. Nevertheless, these cycles have presented opportunities for Perma-Fix to expand beyond our core niche of nuclear waste treatment. Specifically, we have bid on several projects for onsite management of DOE facilities. We believe that the onsite advantage will provide Perma-Fix with the ability to accurately assess waste streams early in the disposal cycle. This unique expertise will not only help to accelerate the cleanup process, but in turn, we believe should expedite the flow of waste sent to our four treatment facilities. Whether or not we win these onsite contracts, we anticipate the DOE will accelerate its cleanup efforts in the second half of 2008. We believe we are uniquely positioned to capture a portion of the planned waste treatment at these sites, since we are the only commercial operator with the licenses and facilities to treat most mixed waste streams that reside in the DOE weapons complex."

Dr. Centofanti continued, "We have made progress regarding the divestiture of our industrial waste business. In the first quarter, we sold both Baltimore, Maryland and Dayton, Ohio facilities for a combined $6.0 million in all-cash transactions, subject to certain working capital adjustments, including the assumption of certain liabilities by the purchasers. Our goal is to sell the remaining facilities on the industrial side of our business to focus all our resources and attention on the higher margin nuclear waste sector. As previously reported, the Industrial Segment of Perma-Fix has been re-classified as discontinued operations. Under this scenario, we have absorbed a much higher percentage of the corporate overhead within our Nuclear Segment, but plan to adjust these expenses following the divestiture of the remainder of the Industrial Segment."

Financial Results

Revenue for the first quarter of 2008 was $14.9 million, versus $12.9 million for the same period last year. Revenue for the Nuclear Segment increased to $14.0 million versus $12.3 million for the same period last year. Revenue from the Engineering Segment was $902,000 versus $577,000 for the same period last year. Operating loss from continuing operations for the first quarter was $328,000 versus operating income of $583,000 for the same period last year. The decrease in operating income primarily reflects the lower margin waste treated within the Nuclear Segment. Loss from discontinued operations, net of taxes, totaled $710,000 for the first quarter of 2008 compared to a loss of $1.7 million for the same period last year. Net income applicable to common stockholders for the first quarter of 2008 was $1.1 million, or $0.02 per share, versus net loss of $1.1 million or $0.02 per share, for the same period last year. Net income applicable to common stockholders for the first quarter of 2008 included a gain on disposal of discontinued operations, net of taxes, of $2.1 million.

The company had EBITDA of $2.6 million during the quarter ended March 31, 2008, as compared to EBITDA of approximately $.5 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 months ended March 31, 2008 and 2007.



                                                            Quarter Ended
                                                              March 31,
    (In thousands)                                       2008           2007

    Net (loss) Income                                   $1,069        $(1,084)

    Adjustments:
      Depreciation & Amortization                        1,121          1,217
      Interest Income                                      (68)           (88)
      Interest Expense                                     392            254
      Interest Expense - Financing Fees                     52             48
      Income Tax Expense                                    45            126

    EBITDA                                              $2,611           $473

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



                                   Quarter Ended            Quarter Ended
                                   March 31, 2008           March 31, 2007
    (In thousands)              Nuclear    Engineering   Nuclear   Engineering

    Net revenues                $13,981       $902       $12,344      $577
    Gross profit                  3,554        255         4,431       169
    Segment profit                  976        128         2,011        49


    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, onsite management of DOE facilities will provide Perma-Fix with the ability to accurately access waste streams early in the disposal cycle; this will help to accelerate the clean-up process and flow of waste sent to our facilities; we are uniquely positioned to capture a portion of the planned waste treatment; sell the remaining facilities within our Industrial Segment; adjust expenses following divestiture of remainder of the Industrial Segment; new onsite contracts representing growth opportunity outside our traditional markets and increase the flow of waste to us; new opportunities for Perma-Fix to expand beyond a core niche of nuclear waste treatment; anticipate DOE will accelerate its cleanup efforts in the second half of 2008. 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; 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.



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

                                                           Three Months Ended
                                                               March 31,
    (Amounts in Thousands, Except for Per Share Amounts)   2008         2007


    Net revenues                                         $14,883      $12,921
    Cost of goods sold                                    11,074        8,321
      Gross profit                                         3,809        4,600

    Selling, general and administrative expenses           3,807        3,715
      Income from operations                                   2          885

    Other income (expense):
      Interest income                                         68           88
      Interest expense                                      (352)        (200)
      Interest expense-financing fees                        (52)         (48)
      Other                                                    6          (16)
     (Loss) income from continuing operations before
       taxes                                                (328)         709
      Income tax expense                                       -          126
      (Loss) income from continuing operations              (328)         583

    Loss from discontinued operations, net of taxes         (710)      (1,667)
    Gain on disposal of discontinued operations, net of
     taxes                                                 2,107            -
      Net income (loss)                                    1,069       (1,084)

    Preferred Stock dividends                                  -            -
        Net income (loss) applicable to Common
         Stockholders                                     $1,069      $(1,084)

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

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

    Number of common shares used in computing net
     income (loss) per share:
      Basic                                               53,704       52,063
      Diluted                                             53,704       53,067



                    PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                          CONSOLIDATED BALANCE SHEET

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

    ASSETS
    Current assets:
      Cash & equivalents                                     $98         $137
      Account receivable, net of allowance for
       doubtful accounts of $79 and $138                  13,284       13,536
      Unbilled receivables                                 8,738       10,321
      Other current assets                                 3,342        3,403
      Assets of discontinued operations included in
       current assets, net of allowance for doubtful
       accounts of $93 and $269                            2,804        5,197
        Total current assets                              28,266       32,594

    Net property and equipment                            46,709       47,309
    Property and equipment of discontinued operations,
     net of accumulated depreciation of $6,027 and
     $12,408                                               4,232        6,775
    Intangibles and other assets                          38,764       36,984
    Intangible and other assets of discontinued
     operations                                            1,598        2,369
        Total assets                                    $119,569     $126,031

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities                                   30,510       41,389
    Current liabilities related to discontinued
     operations                                            4,834        8,359
        Total current liabilities                         35,344       49,748

    Long-term liabilities                                 19,895       12,680
    Long-term liabilities related to discontinued
     operations                                            3,093        3,590
        Total liabilities                                 58,332       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, 53,704,516 and 53,704,516 shares
       issued and outstanding, respectively                   54           54
      Additional paid-in capital                          96,549       96,409
      Stock subscription receivable                          (10)         (25)
      Accumulated deficit                                (36,641)     (37,710)
        Total stockholders' equity                        59,952       58,728
          Total liabilities and stockholders' equity    $119,569     $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
or
U.S. Investor Relations:
David K. Waldman
Crescendo Communications, LLC
+1-212-671-1020 x101
or
European Investor Relations:
Herbert Strauss
+43 316 296 316
herbert@eu-ir.com