Perma-Fix Reports 29% Increase in First Quarter Revenue

                  - Nuclear Segment Revenue Increases 15% -

                 - Industrial Segment Revenue Increases 51% -

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, 2005. Revenues for the first quarter of 2005 increased 29% to $21.6 million compared to $16.8 million for the first quarter of 2004. Revenues for the Nuclear Segment increased 15% to $10.9 million, reflecting continued expansion within the mixed waste market, including new government and commercial contracts. Revenues for the Industrial Segment increased 51% to $9.9 million for the quarter, reflecting the progress of the Company's recent restructuring of its Industrial Segment.

Income from continuing operations for the quarter was $46,000, compared to loss from continuing operations of $1.4 million in 2004. Net loss applicable to common stock for the quarter was $168,000, or $0.00 per share, compared to net loss applicable to common stock of $2.0 million, or $0.06 per share, for the same period in 2004. Net loss included $167,000 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 March 31, 2005   Quarter Ended March 31, 2004
                 Industrial Nuclear Engineering Industrial Nuclear Engineering
    (In thousands)
    Net revenues   $ 9,949  $10,896   $   763     $ 6,608   $9,475   $   728
    Gross profit     1,800    3,546       155         320    3,363       167
    Segment profit
    (loss)            (245)   1,647        31      (1,526)   1,267        68

Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, "We are quite pleased with the revenue growth across all segments. The Nuclear Segment continues to generate strong cash flow, and our sales pipeline is robust as we enter the second quarter. The restructuring of the Industrial Segment is progressing well, as evidenced by the increased revenue and improved margins. As a result, we achieved positive income from continuing operations, during our seasonally weakest period. As further evidence of our sales success and commitment to customer service, we were recently awarded a renewed and expanded two-year contract estimated at approximately $10 million from a leading North-American home-improvement retail chain. We anticipate continued revenue growth and improved profitability within both segments for the balance of 2005."

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.

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 revenue growth and profitability within both segments for the balance of 2005. 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 or failure to abide by or comply with contracts or to deliver waste as anticipated, 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 again PFD alleging similar matters) is resolved unfavorably to us, and the additional factors referred to under "Special Note Regarding Forward-Looking Statements" of our 2004 Form 10-K. 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 .

                           FINANCIAL TABLES FOLLOW


                                                        Three Months Ended
                                                             March 31,
    (Amounts in Thousands, Except for
     Per Share Amounts)                                  2005         2004

    Net revenues                                     $ 21,608     $ 16,811
    Cost of goods sold                                 16,107       12,961
      Gross profit                                      5,501        3,850

    Selling, general and administrative
     expenses                                           4,919        4,338
    Loss (Gain) on disposal of fixed assets                --          (17)
      Income (loss) from operations                       582         (471)

    Other income (expense):
      Interest income                                       1            1
      Interest expense                                   (412)        (665)
      Interest expense-financing fees                    (111)        (256)
      Other                                               (14)         (54)
        Income (loss) from continuing operations           46       (1,445)

    Loss from discontinued operations                    (167)        (553)
      Net loss                                           (121)      (1,998)

      Preferred Stock dividends                           (47)         (47)
      Net loss applicable to Common Stock            $   (168)    $ (2,045)

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

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

    Number of shares and potential common
     shares used in net loss per common share:
      Basic                                            41,778       37,040
      Diluted                                          44,539       37,040


                                                     March 31,
                                                       2005      December 31,
    (Amounts in Thousands, Except for Share        (Unaudited)       2004

    Current assets:
      Cash                                           $     78    $     215
      Restricted cash                                      60           60
      Accounts receivable, net of allowance
       for doubtful accounts of $481 and $570          27,411       27,192
      Prepaid expenses and other                        4,035        3,818
      Current assets of discontinued
       operations, net of allowance for
       doubtful accounts of $119 and $125               1,585        1,609
         Total current assets                          33,169       32,894

    Net property and equipment                         46,827       47,261
    Property of discontinued operations                   600          600
    Permits                                            12,978       12,895
    Goodwill                                            1,330        1,330
    Finite Risk Sinking Fund                            3,216        2,225
    Other assets                                        3,063        3,250
         Total assets                               $ 101,183    $ 100,455

    Current liabilities:
      Accounts payable                              $   7,355    $   6,529
      Accrued expenses and other                       16,737       17,936
      Current liabilities of discontinued
       operations                                       2,371        2,550
      Current portion of long-term debt                 6,361        6,376
         Total current liabilities                     32,824       33,391

    Other long-term liabilities                         9,241        9,147
    Long-term liabilities of discontinued
     operations                                         1,804        1,804
    Long-term debt, less current portion               13,876       12,580
        Total long-term liabilities                    24,921       23,531
        Total liabilities                              57,745       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                       80,958       80,902
      Accumulated deficit                             (36,962)     (36,794)
      Interest rate swap                                  (24)         (41)
                                                       44,015       44,110
      Less Common Stock in treasury at cost;
       988,000 shares                                  (1,862)      (1,862)
        Total stockholders' equity                     42,153       42,248

          Total liabilities and stockholders'
           equity                                   $ 101,183    $ 100,455
SOURCE  Perma-Fix Environmental Services, Inc.
    -0-                             05/09/2005
    /CONTACT:  Dr. Louis F. Centofanti, Chairman and CEO, Perma-Fix
Environmental Services, Inc., +1-404-847-9990; or David Waldman,, or John Heilshorn, both of Lippert/Heilshorn & Associates,
+1-212-838-3777, or Herbert Strauss-European investor relations in Austria,
+011-43-316-296-316, or, all for Perma-Fix Environmental
Services, Inc./
    /Web site: /

CO:  Perma-Fix Environmental Services, Inc.
ST:  Georgia

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