Perma-Fix Environmental Services Announces Record Sales Of $24.2 Million and Earnings of $1.5 Million for the Third Quarter

Earnings of $1.5 Million for the Third Quarter, Reflects 140% Increase in Nuclear Segment Revenues

ATLANTA, Nov. 11 -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI; BSE)(Germany: PES.BE) today announced revenues of $24.2 million for the quarter ended September 30, 2002, compared to revenues of $17.4 million for the quarter ended September 30, 2001, an increase of 39%. Revenues for the nuclear segment were $13.5 million for the quarter, reflecting an increase of 140% over the same quarter of 2001. This increase is principally a result of the growth in the mixed waste revenues due to the Company's continued build-up of this new strategic market. Net income for the quarter was approximately $1.5 million or $.04 per share as compared to a net loss of $613,000 or $.02 per share for the quarter ended September 30, 2001. The earnings before interest, tax, depreciation and amortization (EBITDA) increased by 29.0% to $3.9 million from $3.0 million for the same quarter of 2001. EBITDA was positively impacted by improvements in gross margins within the nuclear segment.

For the nine months ended September 30, 2002, consolidated revenues increased to $63.2 million from $53.9 million for the period ended September 30, 2001. Net income for the nine months increased to $2.2 million or $.07 per share from a net loss of $1.9 million or $.08 per share for the same period in 2001. EBITDA for the nine months ended September 30, 2002, increased to $8.8 million from $6.4 million for the same nine months in 2001.

The company said that the strong increase in revenues and EBITDA for the third quarter and the first nine months of 2002 were principally due to the growth within the Company's nuclear segment, and reflects the favorable impact from the recent expansion of this segment. These favorable results for the nuclear segment were negatively impacted by the industrial segment which experienced an overall slowing principally due to the current economic downturn. The exception in the industrial segment was the positive impact of the new "Bio-Fix" water treatment process at the Dayton facility. The "Bio- Fix" water treatment process is Perma-Fix's new chemical/biological treatment process for treating industrial wastewaters, especially those that are difficult to treat.

Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, commented, "We are excited to report these results for the quarter, which reflects our commitment and success in execution of the mixed waste business plan we envisioned several years ago. We recognized the unique market which existed and the opportunity to clean-up nuclear waste utilizing our proprietary technologies. We completed the initial process of building and improving our facilities, and are now actively and successfully engaged in the process of dealing with this major national priority. We are, at last, enjoying the fruits of this long process and are pleased with our record results, and the continued success of all three of our nuclear facilities. We continue to see improvements within the industrial segment and are very excited about the new "Bio-Fix" water treatment process."

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 the Departments of Energy and 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.

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                    Perma-Fix Environmental Services, Inc.
                    Consolidated Statements of Operations

                             Three Months Ended       Nine Months Ended
                               September 30,             September 30,
   (Amounts in Thousands,    2002          2001         2002          2001
     Except for Per Share

    Net revenues           $24,232       $17,386      $63,168       $53,938

    Cost of goods sold      15,993        10,814       41,919        37,071

     Gross profit            8,239         6,572       21,249        16,867

    Selling, general and
     expenses                4,350         3,557       12,470        10,462

    Depreciation and
     amortization            1,067         1,141        3,143         3,173

     Income from
      operations             2,822         1,874        5,636         3,232

    Other income (expense):
     Interest income             4             7           13            23
     Interest expense        (723)         (782)      (2,150)       (2,317)
     Interest expense-
      Warrants                  --            --           --         (234)
     Interest expense-
      financing fees         (262)       (1,651)        (779)       (2,474)
     Other                   (285)          (29)        (366)          (47)

    Net income (loss)        1,556         (581)        2,354       (1,817)

    Preferred Stock
     dividends                (48)          (32)        (111)         (114)

    Net income (loss)
     applicable to
     Common Stock           $1,508        $(613)       $2,243      $(1,931)

    EBITDA                  $3,889        $3,015       $8,779        $6,405

    Net income (loss)
     per common share:
    Basic                     $.04        $(.02)         $.07        $(.08)
    Diluted                   $.04        $(.02)         $.06        $(.08)

    Number of shares
     and potential common
     shares used in
     computing net income
     (loss) per common share:
    Basic                   34,275        29,551       34,181        25,016
    Diluted                 42,617        29,551       42,992        25,016


Source: Perma-Fix Environmental Services, Inc.