Perma-Fix Signs Letter of Intent to Sell Its Detroit Facility
ATLANTA, Nov 16, 2004 /PRNewswire-FirstCall via COMTEX/ -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI; Boston) (Germany: PES.BE) announced today that it signed a letter of intent to sell its Detroit facility to TIFORP Group Holding LLC (TIFORP). The Detroit facility was recently closed by Perma-Fix due to two fires and the high cost of rebuilding the operation. The letter of intent is subject to numerous conditions, including completion of due diligence by the buyer, completion of definitive agreements and approval of certain regulatory authorities.
TIFORP intends to utilize the facility for the processing of used tires for fuel and other applications, a purpose different than that for which the Company operated the facility. The facility has properly disposed of all customer and self generated waste at the facility. All of the facility's permitted treatment and storage units have been remediated and will be certified RCRA clean prior to the sale. The letter of intent provides that TIFORP will acquire the long-lived assets of the facility in exchange for assuming the remaining environmental liabilities. This includes TIFORP assuming full responsibility for the final permit required closure and post closure costs, as well as any remaining environmental remediation liabilities, which should allow us to reduce the liabilities previously reported for the closure of this facility.
Dr. Louis F. Centofanti, chairman and chief executive officer, stated, "We are very pleased to announce this letter of intent and the proposed sale of the facility, as it will allow us to focus on our other on-going businesses. We believe this sale will strengthen our balance sheet, and allow us to reduce the accrued long-term environmental liabilities, which we were required to record in the absence of a sales agreement."
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 this sale strengthening our balance sheet and allowing us to reduce the accrued long-term environmental liabilities. 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, completion of a definitive agreement in a form consistent with the term of the letter of intent, approval by our board of directors and auditors, applicable regulatory approval and the performance by the buyer of the obligation under the final agreement. 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 .
SOURCE Perma-Fix Environmental Services, Inc.
Dr. Louis F. Centofanti, Chairman and CEO of Perma-Fix Environmental Services, Inc., +1-404-847-9990; or Investors, David Waldman or John Heilshorn, both of Lippert-Heilshorn & Associates, +1-212-838-3777, or dwaldman@lhai.com ; or European Investors, Herbert Strauss of European investor relations in Austria, +011-43-316-296-316, or herbert@eu-ir.com ; or Media, Andrew Lavin of A. Lavin Communications, +1-212-290-9540, or andrewlavin@alavin.com , all for Perma-Fix Environmental Services, Inc.
http://www.perma-fix.com
Released November 16, 2004