Perma-Fix Announces Results for the Fourth Quarter and Fiscal 2005

                    * 2005 Record Revenues Increase 10.2%
        * 2005 Net Income Grows to a Record $3.6 million vs a Loss of
                            $19.6 million in 2004

ATLANTA, March 7 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI) (BSE: PESI) (Germany: PES.BE) today announced financial results for the fourth quarter and fiscal 2005. Revenues for the quarter ended December 31, 2005, totaled $21.5 million, compared to $22.8 million for the same period in 2004. Revenue for the Industrial Segment was $9.5 million, down $704,000 principally due to the contract termination from a major home improvement chain, which was announced in October 2005. Revenue for the Nuclear Segment was $11.3 million, a $526,000 decrease from the 2004 fourth quarter. We have continued to work with the government to smooth out the waste shipments and as a result have experienced more consistent receipts throughout 2005. However, from a comparative perspective, the fourth quarter of 2004 reflected the benefit of several larger shipments and certain surcharges recorded during the period. Although the fourth quarter of this year was down, the Nuclear Segment finished overall higher in 2005, as noted below.

Net income, applicable to Common Stock, for the fourth quarter 2005 was $541,000 or $.01 per share compared to $4,000 for the same period in 2004. In the 2005 fourth quarter, the Company had income from discontinued operations of $289,000 as a result of a gain of $510,000 from the final Michigan insurance settlement. Discontinued operations includes the Michigan facility which was shut down in 2004 and the Pittsburgh, Pennsylvania, facility which was shut down in November 2005.

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


                        Quarter Ended                  Quarter Ended
                      December 31, 2005              December 31, 2004
                Industrial Nuclear Engineering  Industrial Nuclear Engineering
    (In thousands)
    Net revenues   $ 9,475  $11,282  $  708        $10,179  $11,808   $  803
    Gross profit     1,450    4,149     186          2,064    4,469      169
    Segment profit
     (loss)         (1,064)   2,430      48         (3,022)   2,737       70

For the twelve months ended December 31, 2005, revenues increased by approximately 10.2% to a record $90.9 million, compared to $82.5 million in 2004. Results for fiscal 2005 reflect a 10.7% increase in revenue from the Nuclear Segment to $47.2 million, and an 11.4% increase in revenue from the Industrial Segment to $40.8 million. The increase in the Nuclear Segment was principally attributable to the Company's continued expansion within the mixed waste market, including new government and commercial contract awards.

For the twelve months ended December 31, 2005, net income, applicable to Common Stock, totaled $3.6 million or $.08 per share, compared to a loss of $19.6 million or $.48 per share in 2004. Results for 2005 include income from discontinued operations of $670,000.

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


                        Twelve Months Ended          Twelve Months Ended
                         December 31, 2005            December 31, 2004
                Industrial Nuclear Engineering  Industrial Nuclear Engineering
    (In thousands)

    Net revenues   $40,768  $47,245  $ 2,853      $36,600  $42,679   $ 3,204
    Gross profit     6,627   18,100      669        6,160   16,741       812
    Segment profit  (1,762)  10,141      182      (12,900)   9,240       376
     (loss)

Dr. Louis F. Centofanti, Chairman and CEO, commented, "We are pleased with the progress that Perma-Fix has made over the past year. We have achieved revenue increases in our two major segments, which resulted in record revenues on a consolidated basis for 2005, record revenues for our Nuclear Segment for 2005, four profitable quarters from continuing operations and a very positive change in our net income for the year. All the while, we have been executing our plans to increase revenue, efficiency and profitability. We continue to strengthen our balance sheet and have significantly improved our liquidity and working capital position this year. We believe that 2006 will be a very exciting year of growth for Perma-Fix."

Perma-Fix Environmental Services, Inc. is a national environmental services company, providing unique mixed waste and industrial waste management services. The Nuclear Segment provides radioactive and mixed waste treatment services to hospitals, research laboratories and institutions, numerous federal agencies including the Departments of Energy and Defense and nuclear utilities. The Industrial 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 possible or assumed future results of operations of the company, our increased revenue, efficiency and profitability and 2006 being a very exciting year of growth for Perma-Fix. 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, the ability of the company to apply and market its technologies, neither the government nor any party which has granted the Company a material contract terminates their contract prior to expiration of the term of the contract, and satisfactory resolution of the actions brought relating to air issues at our Dayton, Ohio and Tulsa, Oklahoma facilities. 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 TABLE FOLLOWS


                    PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                      For the periods ended December 31

                                Three Months              Twelve Months
    (Amounts in Thousands,    2005         2004         2005         2004
     Except for Share
     Amounts)
    Net Revenues           $21,465      $22,790      $90,866      $82,483

    Cost of goods sold      15,680       16,088       65,470       58,770

      Gross Profit           5,785        6,702       25,396       23,713

    Selling, general and
     administrative expenses 5,078        5,521       20,443       18,461

    Loss (gain) on disposal
     or impairment of fixed
     assets                    (1)          (2)        (334)          994

    Impairment loss on
     intangible assets          --        1,901           --        9,002

      Income (loss) from
       operations              708        (718)        5,287      (4,744)

    Other income (expense):
      Interest income          126            1          133            3
      Interest expense       (418)        (486)      (1,594)      (2,020)
      Interest expense -
       financing fees         (48)        (112)        (318)      (2,191)
      Other                      8        (442)            7        (456)

    Income (loss) from
     continuing operations
     before taxes              376      (1,757)        3,501      (9,408)

    Income Taxes               108            6          432          169

    Income (loss) from
     continuing operations     268      (1,763)        3,069      (9,577)

    Discontinued operations:
      Income (loss) from
       discontinued operations 289        1,158          670        (606)
      Income (loss) on disposal
       of discontinued
       operations               --          657           --      (9,178)
        Total income (loss)
         from discontinued
         operations            289        1,815          670      (9,784)

    Net income (loss)          557           52        3,739     (19,361)

    Preferred Stock dividends (16)         (48)        (156)        (190)

    Net income (loss)
     applicable to Common
     Stock                    $541           $4       $3,583    $(19,551)
    Net income (loss) per
     common share - basic:
      Continuing operations   $.01       $(.04)         $.07       $(.24)
      Discontinued operations   --          .04          .01        (.24)
      Net income (loss) per
       common share           $.01          $--         $.08       $(.48)

    Net income (loss) per
     common share - diluted:
      Continuing operations   $.01       $(.04)         $.07       $(.24)
      Discontinued operations   --          .04          .01        (.24)
      Net income (loss) per
       common share           $.01          $--         $.08       $(.48)

    Number of shares and
     potential common shares
     Used in computing net
     income (loss) per share:
      Basic                 44,754       41,747       42,605       40,478

      Diluted               47,512       43,947       44,804       40,478



                    PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                              As of December 31


    (Amounts in Thousands,
     Except for Share Amounts)                                2005    2004

    ASSETS
    Current assets
      Cash                                                 $     94 $    215
      Restricted cash                                           511       60
      Accounts receivable, net of allowance for doubtful
       accounts of $512 and $560                             16,609   17,408
      Unbilled receivables                                   11,948    9,518
      Prepaid expenses and other                              3,656    3,810
      Current assets of discontinued operations                  60    1,883
        Total current assets                                 32,878   32,894

      Net property and equipment                             44,480   46,898
      Net property and equipment of discontinued operations     806      963
      Permits                                                13,188   12,895
      Goodwill                                                1,330    1,330
      Finite Risk Sinking Fund                                3,339    2,225
      Other assets                                            2,504    3,250
        Total assets                                       $ 98,525 $100,455

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable                                     $  6,053 $  6,361
      Accrued expenses and other                             17,603   17,857
      Current liabilities of discontinued operations            628    2,797
      Current portion of long-term debt                       2,678    6,376
        Total current liabilities                            26,962   33,391

    Other long-term liabilities                               9,279    8,997
    Long-term liabilities of discontinued operations          3,149    1,954
    Long-term debt, less current portion                     10,697   12,580
        Total long-term liabilities                          23,125   23,531

        Total liabilities                                    50,087   56,922

    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, 0 and 2,500 shares issued and
         outstanding, respectively                               --       --
        Common Stock, $.001 par value; 75,000,000 shares
         authorized, 45,813,916 and 42,749,117 shares
         issued, including 988,000 shares held as treasury
         stock, respectively                                     46       43
      Additional paid-in capital                             82,180   80,902
      Accumulated deficit                                  (33,211) (36,794)
      Interest rate swap                                         --     (41)
                                                             49,015   44,110

      Less Common Stock in treasury at cost;
       988,000 shares                                       (1,862)  (1,862)

        Total stockholders' equity                           47,153   42,248

        Total liabilities and stockholders' equity         $ 98,525 $100,455
SOURCE  Perma-Fix Environmental Services, Inc.
    -0-                             03/07/2006
    /CONTACT:  Dr. Louis F. Centofanti, Chairman and CEO, Perma-Fix
Environmental Services, Inc., +1-404-847-9990; or James Kautz or J. Todd
Atenhan, both of EPOCH Financial Group, Inc., +1-888-917-5105, or
jkautz@epochfinancial.com, or Herbert Strauss, European investor relations,
+43-316-296-316, or herbert@eu-ir.comherbert@eu-ir.com, all for Perma-Fix/
    /Web site:  http://www.perma-fix.com /
    (PESI)

CO:  Perma-Fix Environmental Services, Inc.
ST:  Georgia
IN:  ENV INS
SU:  ERN

DS-MD
-- FLTU008 --
8577 03/07/2006 08:15 EST http://www.prnewswire.com