Perma-Fix Reports Record Profit for First Quarter, Ended March 31, 2006

Revenue for Nuclear Segment Climbs 11.6 Percent

ATLANTA, May 9 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI; BSE: PESI; Germany: PES.BE) today announced financial results for the first quarter ended March 31, 2006. Revenues for the first quarter of 2006 were $21.1 million versus $21.4 million for the first quarter of 2005, a decrease of 1.5%.

Income from continuing operations for the quarter rose to $1.1 million, from $109,000 in the same period a year ago. Net income applicable to common stock for the quarter grew to a record $678,000, or $0.02 per share, from a net loss applicable to common stock of $168,000 or $0.00 per share, for the same period a year ago. The 2006 net income applicable to common stock included a loss from discontinued operations of $450,000 from expenses incurred at the Company's discontinued operations in Detroit and Pittsburgh.

Dr. Louis F. Centofanti, Perma-Fix chairman and chief executive officer, said, "This was Perma-fix's best first quarter. In addition to achieving record first quarter net income, the Nuclear segment is now on a dynamic track."

"Going forward, we envision continued growth in the Nuclear segment. The segment's continued growth is allowing it to handle new mixed waste streams which we have not previously handled, as evidenced by a new government contract that our Nuclear segment entered into during the first quarter of 2006. This contract has a potential value of approximately $9.4 million over the term of the contract. In addition, we believe that the recently announced certification received by our Nuclear segment to dispose of certain types of nuclear related waste at the Nevada Test site will also assist in its growth.

"Moreover," Centofanti added, "we are anticipating a good year as a whole. The performance of the Industrial segment is improving as demonstrated by the increase in gross profit percentage from 18.8% in 2005 to 21.6% in 2006; we are now near completion of lower margin contracts and we have discontinued our unprofitable operations in Michigan and Pittsburgh.

Revenues for the Nuclear segment rose 11.6% to $12.2 million, reflecting growing sales and new contracts in the mixed waste market. Revenue for the Industrial segment was $8.2 million versus $9.8 million in the same quarter of the previous year.

The table below presents certain financial information for the business segments, excluding allocation of corporate expenses.

                             Quarter Ended March 31, 2006
    (In thousands)       Industrial    Nuclear    Engineering

    Net revenues           $8,222      $12,158        $738

    Gross profit            1,777        4,821         232

    Segment profit (loss)     (89)       2,706          91

                             Quarter Ended March 31, 2005
                         Industrial    Nuclear    Engineering
    Net revenues           $9,771      $10,896        $763

    Gross profit            1,836        3,546         155

    Segment profit (loss)   (166)       1,631          31

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 information concerning continued growth in the Nuclear segment, handling new mixed waste streams as evidenced by a new government contract having a potential value of approximately $9.4 million; potential growth as a result of a recently received certification that our Nuclear segment received to dispose of certain types of nuclear waste at the Nevada Test site; and anticipating a good year as a whole. 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; 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 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 pending or future litigation or administrative proceeding (including, but not limited to, the pending proceedings brought by the U.S. Environmental Protection Agency against Perma-Fix of Dayton, Inc. ("PFD") alleging that PFD's operations require it to operate under a title V Air permit and a citizens' suit against PFD alleging similar matters) is resolved unfavorably to us, and the additional factors referred to under "Special Note Regarding Forward-Looking Statements" of our 2005 Form 10-K and the "Forward-Looking Statements" discussed in our Form 10-Q for the first quarter of 2006. 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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                                                         Three Months Ended
                                                              March 31,
    (Amounts in Thousands, Except for Per Share           2006        2005
    Net revenues                                      $  21,118   $  21,430
    Cost of goods sold                                   14,288      15,893
    Gross profit                                          6,830       5,537

    Selling, general and administrative expenses          5,241       4,665
    Gain on disposal of property and equipment                3           -
    Income from operations                                1,586         872

    Other income (expense):
    Interest income                                          33           1
    Interest expense                                       (357)       (412)
    Interest expense-financing fees                         (49)       (111)
    Other                                                   (13)        (28)
    Income from continuing operations before taxes        1,200         322
    Income tax expense                                       72         213
    Income from continuing operations                     1,128         109

    Loss from discontinued operations                      (450)       (246)
    Net income (loss)                                       678        (137)

    Preferred Stock dividends                                 -         (31)
    Net income (loss) applicable to Common Stock      $     678   $    (168)

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

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

    Number of shares and potential common
    shares used in net income (loss) per
    common share:
    Basic                                                44,831      41,778
    Diluted                                              45,349      44,539


                                                      March 31,
                                                        2006      December 31,
    (Amounts in Thousands, Except for Share Amounts) (Unaudited)      2005

    Current assets
    Cash                                           $       68   $       94
    Restricted cash                                       501          511
    Accounts receivable, net of allowance for
     doubtful accounts of $467 and $512                13,562       16,609
    Unbilled receivables                               13,975       11,948
    Prepaid expenses and other                          3,302        3,656
    Current assets of discontinued operations               -           60
    Total current assets                               31,408       32,878

    Net property and equipment                         43,778       44,480

    Net property and equipment of discontinued
     operations                                           716          806
    Permits                                            13,246       13,188
    Goodwill                                            1,330        1,330
    Finite Risk Sinking Fund                            4,361        3,339
    Other assets                                        2,297        2,504
    Total assets                                   $   97,136   $   98,525

    Current liabilities:
    Accounts payable                               $    4,842   $    6,053
    Accrued expenses and other                         15,818       17,603
    Current liabilities of discontinued operations        302          628
    Current portion of long-term debt                   2,512        2,678
    Total current liabilities                          23,474       26,962

    Other long-term liabilities                         9,452        9,279
    Long-term liabilities of discontinued operations    3,149        3,149
    Long-term debt, less current portion               11,906       10,697
    Total long-term liabilities                        24,507       23,125

    Total liabilities                                  47,981       50,087

    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:
    Common Stock, $.001 par value;
     75,000,000 shares authorized,
     45,824,926 and 45,813,916 shares
     issued, including 988,000 shares held
     as treasury stock, respectively                       46           46
    Additional paid-in capital                         82,219       82,180
    Accumulated deficit                               (32,533)     (33,211)
                                                       49,732       49,015
    Less Common Stock in treasury at cost;
    988,000 shares                                     (1,862)      (1,862)

    Total stockholders' equity                         47,870       47,153

    Total liabilities and stockholders' equity        $97,136      $98,525

Dr. Louis F. Centofanti
Chairman and CEO
Perma-Fix Environmental Services, Inc.

James Kautz
J. Todd Atenhan
Both of EPOCH Financial Group, Inc.

Herbert Strauss
European Investor Relations

Stephanie Stern of Stern & Co.