ATG Announces First Quarter Expectations; Company Provides Additional Guidance for 2000.

Business Editors

FREMONT, Calif.--(BUSINESS WIRE)--May 11, 2000

ATG Inc. (Nasdaq:ATGC), a leading provider of low-level radioactive and low-level mixed waste treatment services, today announced that it expects to break even in the first quarter ended March 31, 2000.

Net income in the first quarter of 2000 was below initial expectations due primarily to a major shortfall in spent ion exchange resin receipts at the company's facility in Oak Ridge, Tenn. The facility processes spent ion exchange resins from nuclear power plants, reducing the volume of waste going to final disposal. The processed resin waste is disposed of at the Barnwell waste disposal site in South Carolina.

The operator of the Barnwell site offered customers a very deep discount to dispose of the resins without volume reduction, prior to the sale of the Barnwell operations in May 2000. This deep discount program diverted several million dollars worth of spent ion exchange resins to direct disposal at Barnwell during the first quarter of 2000 and is anticipated to do the same during the second quarter. A repeat of the current deep discounted pricing is considered to be unlikely past the second quarter of 2000 due to pending legislation.

ATG recently announced the consolidation of its Oak Ridge operations and a work force reduction of approximately 110 employees. At the same time, the company's Q-CEP process is being replaced by a more cost effective non-thermal resin decontamination process. As a result, the company expects to take an approximate $2.4 million one-time charge in the 2000 second quarter related to the plant consolidation and workforce reduction.

"Obviously we would like to be able to report better news in terms of our near-term expected financial results," said Doreen Chiu, President and Chief Executive Officer of ATG. "We believe, however, that recent steps we've taken, including the consolidation of our Oak Ridge operations, will save us considerable money in the long-term.

"Based on some potential low level mixed waste business opportunities in our pipeline; the anticipated reduction in facility overhead; the availability of our new resin decontamination process; the increase in efficiency of our Safglas process as production increases; and the fact that our mixed waste processing capabilities will be fully installed in the third quarter, we currently expect to report full year 2000 net income in the range of $0.40 - $0.45 per share," continued Ms. Chiu.

"There is no one else in our industry who can provide a full complement of mixed waste treatment. Permitting for this type of treatment is extremely difficult and laborious, and only ATG has successfully completed the process. Therefore, we are in a good position to capture a sizable portion of the market for mixed waste. These opportunities, combined with the factors mentioned above, should allow us to achieve much stronger results in the second half of the year, although no assurances can be given."

The company expects to report full first quarter results on May 15, 2000.

ATG Inc. is a radioactive and hazardous waste management company that offers comprehensive thermal and non-thermal treatment solutions for low-level radioactive and low-level mixed waste generated by commercial entities such as nuclear power plants, medical facilities and research institutions, both in the United States and overseas, and by the U.S. Departments of Defense and Energy.

This news release may contain 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. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors set forth under "Factors Affecting Future Operating Results" in the Company's annual report on Form 10-K and such other risks detailed from time to time in the Company's other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.