Perma-Fix Reports Results for the Second Quarter of 2007

Completes Integration of New Radioactive and Mixed-Waste Treatment Facility in Richland, Washington

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

Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, "We achieved a number of important milestones during the second quarter of 2007. First, we completed the acquisition and successful integration of our new radioactive and mixed-waste treatment facility in Richland, Washington, which we have renamed Perma-Fix Northwest Richland, Inc. Located adjacent to the Hanford site, this facility provides us immediate access to treat some of the most complex nuclear waste streams in the nation. We believe this one site alone represents a substantial growth opportunity for us in the coming years as we introduce our proprietary processes for the treatment of wastes that are both radioactive and chemically hazardous. Second, our M&EC South Bay began processing special nuclear materials during the second quarter, which represents our first foray into the treatment of mid-level radioactive nuclear waste-an opportunity that we believe may far exceed our current market for the treatment of low-level nuclear wastes. Lastly, we announced our intent to sell our Industrial Segment and that we entered into a letter of intent with The Environmental Quality Company (EQ) to purchase our Industrial Segment. EQ has advised us that they will be unable to proceed with the transaction as contemplated by the letter of intent. As a result, we are in the process of considering additional offers that we have received to purchase all or portions of our Industrial Segment. The sale of our Industrial Segment would enable us to focus greater attention and resources on the Nuclear Segment, which has higher margins, strong cash flow and substantial barriers to entry for potential competitors."

Dr. Centofanti continued, "Nuclear revenues were relatively flat for the quarter, which reflected the timing of several projects. However, under our existing contracts alone, we anticipate revenues will return to historic growth levels. In addition, the federal government is proposing a number of new nuclear and mixed waste remediation projects during 2008. We anticipate participating in several of these new projects, which will help further accelerate our revenue growth as these projects begin to ramp-up. The new Perma-Fix Northwest Richland facility contributed two weeks of revenue, and we are quite pleased with the strong flow of radioactive-only waste coming into the facility that we can treat utilizing the existing processes and excess capacity at the facility. Moreover, we look forward to installing our new processes for the treatment of mixed waste at this facility, which will provide very significant expansion opportunities. Overall, we are extremely encouraged by the near 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."

Financial Results

Revenues for the second quarter of 2007 were $13.5 million versus $14.0 million for the same period last year. Revenue for the quarter does not include the Industrial Segment, which has been reclassified under discontinued operations. Revenue for the Nuclear Segment was $13.0 million versus $13.1 million in the same period last year. Nuclear Segment revenue for the quarter includes approximately $1.2 million from Perma-Fix Northwest Richland. Additionally, revenues from the Engineering Segment declined to $532,000 versus $934,000 for the same period last year due in part to inter-company work required by the Industrial Segment divestiture and the Nuvotec acquisition. Income from operations for the second quarter was $752 thousand, versus $1.7 million for the same period last year. During the second quarter, the Company announced its intent to sell the Industrial Segment and to focus on the Nuclear Segment. The discussion of results in this press release exclude the Company's Industrial Segment because it is being reported as "assets for sale".

As previously disclosed, the Company's insurer recently withdrew its prior denial of coverage and agreed to defend and indemnify Perma-Fix and its Dayton, Ohio subsidiary in the previously disclosed lawsuit brought against the Dayton, Ohio subsidiary by a citizens' group and the federal government alleging, among other things, that our Dayton subsidiary was operating without appropriate air permits. Perma-Fix has recently been advised that its insurer will reimburse the Company for the $2.5 million previously spent to defend this litigation. As a result, the Company recorded a gain within discontinued operations of $2.5 million. Perma-Fix has received $750,000 of the $2.5 million anticipated cash reimbursement from its insurer. This was partially offset by $800,000 of reserves recorded in discontinued operations for the anticipated settlement. As a result, income from discontinued operations increased to $470,000 versus $84,000 for the same period last year. Net income applicable to common stock for the second quarter of 2007 was $1.2 million, or $0.02 per share, versus net income of $1.8 million or $0.04 per share, for the same period last year.

The Company's EBITDA was $1.9 million during the quarter ended June 30, 2007, as compared to $3.0 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 June 30, 2007 and 2006.

                                                                 Six Months
                                     Quarter Ended June 30     Ended June 30
    (In thousands)                     2007       2006         2007     2006
    Net Income - Continuing
    Operations                         $752     $1,741       $1,335   $2,958

        Depreciation &
         Amortization                   857        757        1,628    1,510
        Interest Income                 (78)       (58)        (166)     (89)
        Interest Expense                272        389          473      719
        Interest Expense -
         Financing Fees                  48         48           96       96
        Income Tax Expense               58        107          183      179

    EBITDA                           $1,909     $2,984       $3,549   $5,373

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

                        Quarter Ended                 Quarter Ended
                        June 30, 2007                 June 30, 2006
    (In thousands)   Nuclear    Engineering        Nuclear   Engineering
    Net revenues     $13,005         532           $13,106         934
    Gross profit       4,639         165             5,714         219
     profit (loss)     2,295          43             3,375          60

                        Six Months Ended            Six Months Ended
                         June 30, 2007                June 30, 2006
    (In thousands)   Nuclear    Engineering        Nuclear   Engineering
    Net revenues     $25,349       1,109           $25,264       1,672
    Gross profit       9,071         333            10,535         451
     profit (loss)     4,305          92             6,082         151

    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, the growth prospects of our nuclear segment; under our existing contracts alone, we anticipate revenues will return to historic growth levels; that the Perma-Fix Northwest Richland facility will represent a substantial growth opportunity for us in the coming years; M&EC South Bay processing of special nuclear waste which we believe may exceed our current market for the treatment of low level, nuclear waste; the sale of our Industrial Segment; the sale of our Industrial Segment would enable us to focus greater attention and resources in our Nuclear Segment; federal government's new remediation projects during 2008, and we anticipate growth will resume as these new projects slated to being during 2008 ramp up; and reimbursement by our insurer of $2.5 million litigation expenses that we have incurred relating to the Dayton litigation. 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 first quarter of 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.

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                           FINANCIAL TABLES FOLLOW

                          CONSOLIDATED INCOME STATEMENT
                       FOR THE QUARTER ENDED JUNE 30, 2007

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

    Net revenues                         $13,537  $14,040    $26,458  $26,936
    Cost of goods sold                     8,733    8,107     17,054   15,950
    Gross profit                           4,804    5,933      9,404   10,986

    Selling, general and administrative
     expenses                              3,759    3,689      7,474    7,090
    Loss (gain) on disposal of property
     and equipment                             2        -          2        1
    Income from operations                 1,043    2,244      1,928    3,895

    Other income (expense):
    Interest income                           78       58        166       89
    Interest expense                        (272)    (389)      (473)    (719)
    Interest expense-financing fees          (48)     (48)       (96)     (96)
    Other                                      9      (17)        (7)     (32)
    Income from continuing operations
     before taxes                            810    1,848      1,518    3,137
    Income tax expense                        58      107        183      179
    Income from continuing operations        752    1,741      1,335    2,958

    Income (loss) from discontinued
     operations, net of taxes                470       84     (1,197)    (455)
    Net income                             1,222    1,825        138    2,503

    Preferred Stock dividends                  -        -          -        -
    Net income applicable to Common Stock $1,222   $1,825       $138   $2,503

    Net income (loss) per common share -
    Continuing operations                   $.01     $.04      $ .02    $ .07
    Discontinued operations                  .01        -       (.02)    (.01)
    Net income (loss) per common share      $.02     $.04        $ -    $ .06

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

    Number of shares used in computing net
     income (loss)
    per share:
    Basic                                 52,131   45,117     52,097   44,975
    Diluted                               53,601   46,380     53,333   45,805

                           CONSOLIDATED BALANCE SHEETS
                               AS OF JUNE 30, 2007

    (Amounts in Thousands,                      June 30, 2007     December 31,
    Except for Share Amounts)                    (Unaudited)          2006

    Current assets:
       Cash                                            $60            $2,528
       Restricted cash                                  35                35
       Investments                                     121                 -
       Accounts receivable, net of
        allowance for doubtful
        account of $73 and $168                     10,547             9,488
       Unbilled receivables-current                 11,758            12,313
       Prepaid expenses and other                    2,306             4,776
       Current assets included in assets
        held for sale, net of allowance for
        doubtful accounts of $330 and $247           9,014             6,435
    Total current assets                           $33,841           $35,575

    Net property and equipment                      47,522            33,345
    Net Property and equipment included
     in assets held for sale, net of accumulated
     depreciation of $13,641 and $13,341            13,194            13,281
    Permits                                         11,110            11,025
    Goodwill                                        12,769             1,330
    Unbilled receivable - non-current                3,275             2,600
    Finite Risk Sinking Fund                         5,633             4,518
    Other assets                                     1,699             1,954
    Intangibles and other assets included
     in assets held for sale                         2,369             2,369
       Total assets                               $131,412          $105,997

    Current liabilities:
        Accounts payable                            $5,109            $2,456
        Accrued expenses and other                  16,553            12,146
        Current liabilities included in
         assets held for sale                        7,525             6,072
        Current portion of long-term debt            4,080             2,092
          Total current liabilities                 33,267            22,766

       Other long-term liabilities                  12,236             8,191
       Long-term liabilities included in
        assets held for sale                         3,746             3,895
       Long-term debt, less current
        portion                                     13,549             5,407
          Total long-term liabilities               29,531            17,493
          Total liabilities                         62,798            40,259

    Preferred Stock of subsidiary, $1.00
     par value; 1,467,396                            1,285             1,285
     shares authorized, 1,284,730 shares
     issued and
     outstanding, liquidation value $1.00
     per share

    Stockholders' equity:
      Common Stock, $.001 par value;
       75,000,000 shares authorized,
       52,252,363 and 52,053,744 shares
       issued, including 0 shares held
       and 988,000 shares of treasury stock
       retired in 2006, respectively                    52                52
      Additional paid-in capital                    95,691            92,980
      Stock subscription receivable                    (52)              (79)
      Accumulated deficit                          (28,362)          (28,500)
        Total stockholders' equity                  67,329            64,453
        Total liabilities and stockholders'
         equity                                   $131,412          $105,997

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, Herbert
Strauss, European Investor Relations, +43 316 296 316,, both
for Perma-Fix Environmental Services, Inc.