Perma-Fix Announces Results for the Third Quarter of 2007

Reports Progress on Divestiture of Industrial Segment

ATLANTA, Nov. 7 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI) today announced results for the third quarter ended September 30, 2007.

Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, "We are pleased to report that overall sales at Perma-Fix were up for the quarter, driven by the Nuclear Segment, which benefited from our recent acquisition of PEcoS, a facility strategically located adjacent to the Hanford site in Richland, Washington. This new radioactive and mixed waste facility, which we have renamed Perma-Fix Northwest Richland, Inc., began contributing revenue just prior to the start of the third quarter. We are very pleased with the initial results of the facility. Given the scale and complexity of the waste at the Hanford site, we look forward to steadily increasing revenue from this facility as projects in the pipeline begin to ramp up and new ones come online. We are also installing new processes for the treatment of mixed waste at this facility that will provide future expansion opportunities. We generated additional revenue during the quarter as a result of a process we recently put in place to treat mid-level radioactive waste at our facility M&EC South Bay."

"Within the Nuclear Segment, the company experienced a shift in the product mix towards higher volume yet lower margin wastes, which negatively impacted both margins and EBITDA for the third quarter. However, we attribute this decline to normal waste cycles at the Department of Energy (DOE). Our Nuclear Segment also incurred additional expenses as we stepped-up our bidding activity on a number of DOE proposals for new nuclear and mixed waste remediation projects in 2008. We fully expect to participate in several of these large projects and anticipate both near-term and long term growth opportunities within our Nuclear Segment as we expand our operations at the Hanford site, move into the treatment of higher level waste streams, and continue to bid on an increasing number of new DOE projects."

Dr. Centofanti concluded, "Earlier this year, we made the strategic decision to focus exclusively on the multi-billion dollar market for nuclear waste services. To that end, we are in the process of divesting our Industrial Segment to focus our expertise entirely on the higher margin nuclear services. As a result, we absorbed a much higher percentage of the corporate overhead within our Nuclear Segment, but expect to adjust these expenses accordingly following the divestiture of our Industrial Segment. We continue to make progress on the sale of the Industrial Segment. Overall, we remain extremely excited about the outlook for our business within the untapped market for nuclear waste treatment-given the high barriers to entry, as well as our strong leadership position in the industry."

Financial Results

Revenue for the third quarter of 2007 increased 14% to $13.8 million, versus $12.1 million for the same period last year. Revenue for the Nuclear Segment increased 20% to $13.2 million versus $11.0 million in the same period last year. The increase in Nuclear Segment revenue for the quarter reflected higher volumes of waste including treatment at the Company's new Perma-Fix Richland facility. Revenues from the Engineering Segment declined to $629,000 versus $1.1 million for the same period last year due in part to a large event project in 2006 that did not repeat in 2007. Operating loss from continuing operations for the third quarter was $124,000, versus operating income of $600,000 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 $1.8 million. Loss from discontinued operations included a tangible asset impairment of Perma-Fix of Dayton (PFD) assets for $564,000 and a litigation settlement charge between PFD and the Citizens Suit of $825,000, relating to an agreement in principle to settle the citizen's suit portion of a lawsuit against PFD, representing a potential settlement of this portion of the lawsuit for approximately $1,325,000 less $500,000 that our insurer has agreed to pay. During the second quarter of 2007, we reserved $800,000 in connection with an agreement in principle to settle the government's portion of the above lawsuit against PFD. We are in discussions with our insurer to determine if it will increase the amount that it will pay towards the settlement of the citizen's suit and whether it will pay any portion of a proposed settlement with the government. Settlement of this lawsuit is subject to numerous conditions being met. Net loss applicable to common stock for the third quarter of 2007 was $2.0 million, or a loss of $0.04 per share, versus net income of $330,000 or $0.01 per share, for the same period last year.

The Company's EBITDA from continuing operations was $1.3 million during the quarter ended September 30, 2007, as compared to approximately $1.6 million for the same period of 2006. 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 September 30, 2007 and 2006.



                                     Quarter               Nine Months
                                  Ended Sept. 30,         Ended Sept. 30,
                                  2007      2006         2007        2006
    Net Income (loss) -
     Continuing Operations       $(124)      600        1,211      $3,558

    Adjustments:
      Depreciation &
       Amortization              1,118       808        2,745       2,322
      Interest Income              (71)     (100)        (238)       (189)
      Interest Expense             476       276          949         995
      Interest Expense -
       Financing Fees               48        48          143         144
      Income Tax (Recovery)
       Expense                    (161)      (26)          23         152

    EBITDA                      $1,286    $1,606       $4,833      $6,982


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

                                 Quarter Ended           Quarter Ended
                                 Sept. 30, 2007          Sept. 30, 2006
    (In thousands)             Nuclear  Engineering   Nuclear    Engineering
    Net revenues               $13,211       629      $11,023       1,065
    Gross profit                 4,035       231        4,127         241
    Segment profit (loss)        1,319        70        1,997          95


                                   Nine Months              Nine Months
                             Ended Sept. 30, 2007      Ended Sept. 30, 2006
    (In thousands)             Nuclear  Engineering   Nuclear     Engineering
    Net revenues               $38,560     1,738      $36,288        2,737
    Gross profit                13,106       564       14,662          692
    Segment profit (loss)        5,625       162        8,078          246


    About Perma-Fix Environmental Services

Perma-Fix Environmental Services, Inc. is a national environmental services company, providing unique mixed waste and industrial waste management services. The Company has increased its focus on the nuclear services segment, which provides radioactive and mixed waste treatment services to hospitals, research laboratories and institutions, numerous federal agencies including DOE and the U.S. Department of Defense and nuclear utilities. The industrial services segment provides hazardous and non-hazardous waste treatment services for a diverse group of customers including Fortune 500 companies, numerous federal, state and local agencies and thousands of smaller clients. The Company operates nine major waste treatment facilities across the country.

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, given the amount and complexity of the waste at the Hanford site, and we look forward to steadily increasing revenue from this facility as projects in the pipeline begin to ramp up and new ones come online; installing new processes for the treatment of mixed waste at our Perma-Fix Northwest Richland, Inc. facility that will provide future expansion opportunities; fully expect to participate in several new DOE nuclear and mixed waste remediation projects in 2008; anticipate both near-term and long term growth opportunities within our Nuclear Segment; continue to bid on an increasing number of new DOE projects; settlement of this lawsuit is subject to numerous conditions being met; expect to adjust corporate overhead expenses accordingly following the divestiture of our Industrial Segment; we remain extremely excited about the outlook for our business within the untapped market for nuclear waste treatment-given the high barriers to entry, as well as our strong leadership position in the industry and the divestiture of our Industrial Segment. 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 2006 Form 10-K and the Forward-Looking Statements discussed in our Forms 10-Q for the quarter ending March 31, 2007 and June 30, 2007. 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 INCOME STATEMENT
                   FOR THE QUARTER ENDED SEPTEMBER 30, 2007

                                             Three Months       Nine Months
                                                 Ended            Ended
                                              September 30,     September 30,
    (Amounts in Thousands, Except for Per
     Share Amounts)                           2007     2006     2007     2006

    Net revenues                           $13,840  $12,088  $40,298  $39,025
    Cost of goods sold                       9,574    7,720   26,628   23,671
    Gross profit                             4,266    4,368   13,670   15,354

    Selling, general and administrative
     expenses                                4,061    3,564   11,535   10,654
    (Gain) loss on disposal of property
     and equipment                              (4)       -       (1)       1
    Income from operations                     209      804    2,136    4,699

    Other income (expense):
    Interest income                             71      100      238      189
    Interest expense                          (476)    (276)    (949)    (995)
    Interest expense-financing fees            (48)     (48)    (143)    (144)
    Other                                      (41)      (6)     (48)     (39)
    (Loss) income from continuing
     operations before taxes                  (285)     574    1,234    3,710
    Income tax (recovery) expense             (161)     (26)      23      152
    (Loss) income from continuing
     operations                               (124)     600    1,211    3,558

    Loss from discontinued operations, net
     of taxes                               (1,828)    (270)  (3,025)    (724)
    Net (loss) income                       (1,952)     330   (1,814)   2,834

    Preferred Stock dividends                    -        -        -        -
    Net (loss) income applicable to Common
     Stock                                 $(1,952)    $330  $(1,814)  $2,834

    Net income (loss) per common share -
     basic
    Continuing operations                       $-    $ .01    $ .02    $ .08
    Discontinued operations                   (.04)       -     (.05)    (.02)
    Net income (loss) per common share       $(.04)   $ .01    $(.03)   $ .06

    Net income (loss) per common share -
     diluted
    Continuing operations                       $-    $ .01    $ .02    $ .08
    Discontinued operations                   (.04)       -     (.05)    (.02)
    Net income (loss) per common share       $(.04)   $ .01    $(.03)   $ .06

    Number of common shares used in
     computing net income (loss) per share:
    Basic                                   52,843   50,541   52,349   46,851
    Diluted                                 52,843   51,430   53,673   47,414




                    PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                         CONSOLIDATED BALANCE SHEETS
                           AS OF SEPTEMBER 30, 2007

    (Amounts in Thousands, Except for             September 30,   December 31,
     Share Amounts)                                   2007           2006
                                                  (Unaudited)
    ASSETS
    Current assets:
       Cash                                           $108            $2,528
       Restricted cash                                  35                35
       Investment trading securities                    84                 -
       Accounts receivable, net of
        allowance for doubtful
        account of $128 and $168                    10,204             9,488
       Unbilled receivables-current                 11,383            12,313
       Prepaid expenses and other                    4,387             4,776
       Current assets included in assets
        held for sale,  net of allowance
        for doubtful accounts of $274 and $247       6,069             7,100
    Total current assets                           $32,270           $36,240

    Net property and equipment                      46,892            33,345
    Net Property and equipment included
     in assets held for sale, net of accumulated
     depreciation of $12,583 and $13,341            12,568            13,281
    Permits                                         15,625            11,025
    Goodwill                                         9,418             1,330
    Unbilled receivable - non-current                3,276             2,600
    Finite Risk Sinking Fund                         5,961             4,518
    Other assets                                     2,627             1,954
    Intangibles and other assets included
     in assets held for sale                         2,369             2,369
       Total assets                               $131,006          $106,662

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable                              $3,753            $2,456
      Accrued expenses and other                    18,559            12,146
      Current liabilities included in
       assets held for sale                          8,006             6,737
      Current portion of long-term debt              4,078             2,092
        Total current liabilities                   34,396            23,431

      Other long-term liabilities                   12,360             8,191
      Long-term liabilities included in
       assets held for sale                          3,722             3,895
      Long-term debt, less current portion          13,547             5,407
        Total long-term liabilities                 29,629            17,493
        Total liabilities                           64,025            40,924

    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:
      Common Stock, $.001 par value;
       75,000,000 shares authorized,
       53,055,924 and 52,053,744 shares
       issued, including 0 shares held
       and 988,000 shares of treasury stock
       retired in 2006, respectively                    53                52
      Additional paid-in capital                    95,996            92,980
      Stock subscription receivable                    (39)              (79)
      Accumulated deficit                          (30,314)          (28,500)
        Total stockholders' equity                  65,696            64,453
        Total liabilities and
         stockholders' equity                     $131,006          $106,662

SOURCE Perma-Fix Environmental Services, Inc.
CONTACT: Dr. Louis F. Centofanti, Chairman and CEO, of Perma-Fix
Environmental Services, Inc., +1-770-587-5155; or David K. Waldman-US Investor
Relations, of Crescendo Communications, LLC, +1-212-671-1020, x101; or Herbert
Strauss-European Investor Relations, +43 316 296 316, herbert@eu-ir.com
/Web site: http://www.perma-fix.com/
(PESI)