ADA-ES Commits to Continue to Develop New Activated Carbon Plant to Meet the Needs of the Growing Utility Mercury Control Market.

LITTLETON, Colo. -- ADA-ES, Inc. (NASDAQ: ADES) today announced that the Board of Directors has committed the necessary resources to continue the development of an activated carbon manufacturing facility. Previously, the Company announced that in order to stay ahead of an expected billion dollar market, it had undertaken preliminary activities for a new "Greenfield" plant including plant design, initial permitting, securing key lignite reserves, and third-party market analysis. The Board has committed approximately $4 million from internal funds over the next five months to move the project forward in a manner that it expects will position the Company to meet a significant portion of the shortage in activated carbon supply for this rapidly expanding market. Approved and funded activities include plant design, securing options on various desirable properties for the plant, and permitting, as well as specifying and sourcing of key capital equipment, and negotiating with potential financial partners.

The large-scale production facility, which is expected to cost approximately $200 million to build, is being designed to maximize efficiency and produce the most cost-effective product for the mercury control market. A project of this size will capitalize on the Company's position as the market leader and leverage its recently developed intellectual property related to activated carbon production. To date, ADA-ES has won competitive procurements for 17 mercury control systems, which could increase by up to 6 units if the Company's customers exercise all contractual options for additional systems. All of these systems, which represent a share of greater than 50% of the existing market, require the use of activated carbon to capture mercury emissions. Additionally, the Company is in the process of responding to a rapidly increasing volume of requests for quotations on additional systems.

By maintaining an aggressive construction schedule, the Company expects to synchronize production with the expected growth of the market. ADA-ES plans to market long-term supply contracts for this critical component of reducing mercury emissions from coal-fired boilers. The Company expects to finance the build-out of the plant through a combination of equity and debt funding from financial and strategic partners.

The growth in the market is being driven primarily by construction of new coal-fired power plants, as well as state regulations requiring the reduction of mercury emissions from existing coal-fired boilers. For example, Illinois passed a regulation in December 2006 requiring power plants to install activated carbon injection on all 56 boilers in the state between 2008 and 2009. Currently, there are 12 states with mercury control rules and 13 states considering regulations more strict than the federal government's Clean Air Mercury Rule. Most recently, this month, both Pennsylvania and Colorado approved new rules to reduce mercury emissions in their states by up to 90%.

"We firmly believe that this vertical integration of our business plan will enable the Company to stay well ahead of the competition and capitalize on the opportunities we have created with our investment in mercury control," said Dr. Michael Durham, President of ADA-ES. "The development of an activated carbon plant of this scale should provide us a mechanism to meet our goal of satisfying the mercury control needs of our customers in the power generation market."

About ADA-ES

Headquartered in Littleton, Colorado, ADA-ES, Inc. develops and implements proprietary environmental technology and specialty chemicals that mitigate the environmental impacts from electric power and industrial companies, while reducing their operating costs.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which provide a "safe harbor" for such statements in certain circumstances. Such statements are prefaced by words such as "anticipates," "believes," "hopes," "expects," "intends" and "plans," or words of similar meaning. The forward-looking statements contained in this release include: our expectations concerning the growth of the market for mercury control and the size of that market; our perceptions of the Company's position in that market; our plans for expansion of our capabilities to serve that market; our ability to surmount technical obstacles in achieving improved mercury reduction with our technologies our ability to finance the development of an activated carbon facility; and our ability to attract adequate numbers of skilled personnel. Such statements involve significant risks and uncertainties, which could cause actual events or results to differ materially from those discussed in the forward-looking statements as a result of various factors, including, but not limited to, changing economic conditions and market demand for ADA-ES' products and services, changes in technology, failure to satisfy performance guarantees, the availability of federal funding, the availability of either private and/or public funding on reasonable terms; changes in laws or regulations, results of demonstrations of the Company's and other licensed technologies, operational difficulties, availability of skilled personnel, and other factors we discuss in greater detail in our filings with the U.S. Securities and Exchange Commission. The forward looking statements contained in this press release are presented as of the date hereof, and we disclaim any duty to update such statements unless required by law to do so.