ATG and DOE to Jointly Develop, Permit and Commercialize Molten Salt Oxidation Technology.

Business Editors

FREMONT, Calif.--(BUSINESS WIRE)--Jan. 18, 2000

ATG Inc. (NASDAQ:ATGC), a leading provider of low-level radioactive waste treatment services, Tuesday announced that it has entered into a joint development contract with the Oakland, Calif. office of the U.S. Department of Energy (DOE) to permit and commercialize a new mixed waste treatment technology.

The total estimated cost of the project is approximately $4 million and will take approximately four years to complete. The technology, molten salt oxidation (MSO), has already gone through many years of development and testing at DOE laboratories.

Under the terms of the agreement, the DOE will deliver a prototype MSO system to ATG's mixed waste facility in Richland, Wash. ATG is contracted to obtain the necessary permits for the installation and initial testing of the technology on a cost reimbursement basis. Once the initial testing is completed, the contract provides an option for the permitting and construction of a full-scale system.

"We are very pleased that the DOE has recognized the leadership that ATG has taken in the treatment of mixed wastes," said Doreen Chiu, president and chief executive officer. "While no reliable estimates are published for the market potential of this technology, we believe that the market size is in the range of $40 to $50 million."

Tests conducted at DOE labs indicate that the technology can destroy hard-to-treat chlorinated and hallogenated organic waste to below the treatment limits required by the Environmental Protection Agency and state regulatory bodies. MSO is one of the few technologies that can retain acidic gases within the oxidation chamber and eliminate the need for expensive and cumbersome air pollution control equipment.

According to Fred Feizollahi, vice president of engineering and technology, "This technology will complement our GASVIT treatment line in the mixed waste facility by providing an alternative processing method for small quantity, hard-to-treat liquid wastes containing chlorinated compounds. By treating these difficult wastes separately, there should be reduced system corrosion and minimized secondary waste generation."

Feizollahi has been the program manager since inception for the company's recently announced new mixed waste processing facility.

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 wastes 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.

Safe Harbor Statement

This announcement 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. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors including the ability of the company to successfully commercialize its new technologies as well as risk 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 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.