Perma-Fix Reports Record Revenues and Record YTD Profitability

                * Record Revenues for the Quarter and YTD 2005
                  * Nuclear Segment Revenues Increase 62.3%

ATLANTA, Aug. 2 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI) (BSE: PESI) (Germany: PES.BE) today announced that its revenue for the second quarter ended June 30, 2005, increased 32.6% to a record $25.4 million compared to $19.1 million for the second quarter of 2004. Revenue for the Nuclear Segment increased 62.3% to $13.8 million, primarily as a result of increased shipments within the mixed waste market, including new government and commercial contracts. Revenue for the Industrial Segment increased 10.8% to $10.9 million for the quarter.

Income from continuing operations for the second quarter of 2005 was $1.4 million, compared to income from continuing operations of $589,000 in the second quarter of 2004. Net income applicable to common stock for the quarter was $1.2 million, or $0.03 per share, compared to net income applicable to common stock of $70,000, or $0.00 per share, for the same period in 2004. Net income for the second quarter of 2005 included $122,000 of expenses related to discontinued operations at the Detroit facility, which was closed in the third quarter of 2004.

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



                       Quarter Ended                  Quarter Ended
                       June 30, 2005                  June 30, 2004

    (In         Industrial Nuclear Engineering  Industrial Nuclear Engineering
     thousands)

    Net revenues  $10,853  13,807    $699          $9,791  $8,509    $828
    Gross profit      959   6,242     142           2,274   3,160     269
    Segment profit
     (loss)        (1,003)  4,003      42             298   1,332     125


Revenue for the six months of 2005 increased 30.7% to a record $47.0 million compared to $35.9 million for the six months of 2004. Revenue for the Nuclear Segment increased 37.4% to $24.7 million, also a record for the Segment. Revenue for the Industrial Segment increased 26.8% to $20.8 million for the six months.

Income from continuing operations for the six months reached a record $1.5 million, compared to a loss from continuing operations of $856,000 in 2004. Net income applicable to common stock for the six months was $1.1 million, or $0.03 per share, compared to net loss applicable to common stock of $2.0 million or $0.05 per share, for the same period in 2004. Net income for the 2005 period included $289,000 of expenses related to discontinued operations at the Detroit facility, which was closed in the third quarter of 2004.

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



                     Six Months Ended                Six Months Ended
                      June 30, 2005                   June 30, 2004

    (In        Industrial Nuclear Engineering  Industrial Nuclear Engineering
     thousands)

    Net revenues  $20,802 $24,703   $1,462       $16,399  $17,984   $1,556
    Gross profit    2,759   9,787      298         2,594    6,523      436
    Segment
     profit
    (loss)        (1,248)   5,650       73       (1,228)    2,599      193


Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, commented, "Our record-setting results in the second quarter and first half are attributable to our Nuclear Segment. Within Nuclear, we saw increases in the shipments of mixed waste, a very favorable product mix, and the improvements in treatment processes and operational efficiencies. Overall, Nuclear has continued its steady growth with a great second quarter."

Dr. Centofanti continued, "Performance in the Industrial Segment did not meet expectations. Despite encouraging and substantial increases in revenue, the Segment's gross profit and net income results were well below established goals. Efforts to evaluate and increase division performance are ongoing."

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 eleven major waste treatment facilities across the country.

    Please visit us on the World Wide Web at http://www.perma-fix.com .

    Contacts:

    Dr. Louis F. Centofanti                 Valerie Kimball or J. Todd Atenhan
    Chairman and CEO                        EPOCH Financial Group, Inc.
    Perma-Fix Environmental Services, Inc.  vkimball@epochfinancial.com
    404) 847-9990                           888-917-5109

    Herbert Strauss-
    European investor relations
    herbert@eu-ir.com
    +43 316 296 316


    FINANCIAL TABLES FOLLOW

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

                               Three Months Ended          Six Months Ended
    (Amounts in Thousands,        June 30,                    June 30,
     Except for Per
     Share Amounts)          2005         2004           2005         2004

    Net revenues           $25,359      $19,128      $46,967      $35,939

    Cost of goods sold      18,016       13,425       34,123       26,386

    Gross profit             7,343        5,703       12,844        9,553


    Selling, general and
     administrative expenses 5,741        4,320       10,660        8,658

    Gain on disposal of
     fixed assets            (337)          (1)        (337)         (18)
    Income from operations   1,939        1,384        2,521          913


    Other income (expense):
    Interest income              1            1            2            2

    Interest expense         (381)        (575)        (793)      (1,240)
    Interest
     expense-financing fees  (110)        (257)        (221)        (513)
    Other                     (45)           36         (59)         (18)
    Income (loss) from
     continuing operations   1,404          589        1,450        (856)

    Loss from discontinued
     operations              (122)        (472)        (289)      (1,025)
    Net income (loss)        1,282          117        1,161      (1,881)

    Preferred Stock dividends   47           47           94           94

    Net income (loss)
     applicable to Common
     Stock                  $1,235          $70       $1,067     $(1,975)

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

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

    Number of shares and
     potential common shares
     used in net income
     (loss) per common
     share:
    Basic                   41,805       41,448       41,792       39,244

    Diluted                 44,475       45,210       44,506       39,244


                    PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS

                                   June 30,
    (Amounts in Thousands,          2005                 December 31,
     Except for Share Amounts)  (Unaudited)                 2004
    ASSETS
    Current assets
    Cash                             $100                   $215
    Restricted cash                    60                     60
    Accounts receivable, net of
     allowance for doubtful
     accounts of $517 and $570     26,678                 27,192
    Prepaid expenses and other      2,786                  3,818
    Current assets of discontinued
     operations, net of allowance
     for doubtful accounts of
     $93 and $125                     194                  1,609
    Total current assets           29,818                 32,894

    Net property and equipment     46,063                 47,261
    Property and equipment of
     discontinued operations          603                    600
    Permits                        13,045                 12,895
    Goodwill                        1,330                  1,330
    Finite Risk Sinking Fund        3,216                  2,225
    Other assets                    2,875                  3,250
    Total assets                  $96,950               $100,455

    LIABILITIES AND STOCKHOLDERS'
     EQUITY
    Current liabilities:
    Accounts payable               $6,788                 $6,529
    Accrued expenses and other     15,692                 17,936
    Current liabilities of
     discontinued operations        2,235                  2,550
    Current portion of
     long-term debt                 2,868                  6,376
    Total current liabilities      27,583                 33,391
    Other long-term liabilities     9,410                  9,147
    Long-term liabilities of
     discontinued operations        1,600                  1,804
    Long-term debt, less
     current portion               13,664                 12,580
    Total long-term liabilities    24,674                 23,531

    Total liabilities              52,257                 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, 2,500 shares
     issued and outstanding            --                     --
     Common Stock, $.001 par value;
     75,000,000 shares authorized,
     42,793,267 and 42,749,117 shares
     issued, including 988,000 shares
     held as treasury stock,
     respectively                      43                     43
    Additional paid-in capital     80,968                 80,902
    Accumulated deficit          (35,727)               (36,794)
    Interest rate swap               (14)                   (41)
                                   45,270                 44,110
    Less: Common Stock in treasury
     at cost; 988,000 shares      (1,862)                (1,862)
    Total stockholders' equity     43,408                 42,248

    Total liabilities and
     stockholders' equity         $96,950               $100,455
SOURCE  Perma-Fix Environmental Services, Inc.
    -0-                             08/02/2005
    /CONTACT: Louis F. Centofanti, Chairman and CEO, Perma-Fix Environmental
Services, Inc., +1-404-847-9990; or Valerie Kimball,
vkimball@epochfinancial.com, or J. Todd Atenhan, both of EPOCH Financial
Group, Inc., +1-888-917-5109; or Herbert Strauss-European investor relations,
+011-43-316-296-316, or herbert@eu-ir.com/
    /Web site:  http://www.perma-fix.com /
    (PESI)

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






































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3320 08/02/2005 08:05 EDT http://www.prnewswire.com