American Ecology Corporation Moves Into the Black in 1998.

BOISE, Idaho--(BUSINESS WIRE)--March 2, 1999--Jack K. Lemley, chairman and chief executive officer of American Ecology Corporation (Nasdaq:ECOL), today announced that the company for 1998 reported its first profitable year since 1994.

American Ecology for the year reported net income of $345,000, or 3 cents basic earnings per share, compared to a loss of $1.43 million, or (.17) cents per share, in 1997.

The company reported losses of $48.9 million in 1995 and $11.9 million in 1996.

Revenue for 1998 was $39 million compared to $41.5 million in 1997.

"We have accomplished the job of returning American Ecology to profitability," Lemley said. "Now, we look forward to growing revenues and seizing the right opportunities in the future for our shareholders."

Lemley said the company's turnaround was accomplished by restructuring and instituting new disciplines across the organization, by cutting costs and by empowering key people to establish important new relationships with customers.

The result of those decisions has eliminated big losses in the company's hazardous waste disposal business and has created a profitable environment in spite of major political challenges in the nuclear waste processing and disposal business.

"The managers and line employees at all of our operations around the country have worked very hard to place us in this profitable position, and that's what makes this report so encouraging," Lemley said. "We now have the opportunity to take the company to the next level of performance."

Lemley said American Ecology's most successful operation continues to be its Richland, Washington, disposal site, where generators from 11 western states have access to a licensed facility for low-level nuclear waste.

In Oak Ridge, Tennessee, the company's new management team has won repeat business from key customers and is teaming successfully with the Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE) to re-energize the low-level nuclear material processing facility.

Equally as important, Lemley said, was the profitability of American Ecology's operating hazardous waste disposal facilities in 1998. The sites succeeded in bucking a national trend of declining activity and attrition among disposal companies serving chemical waste generators.

American Ecology provides processing, packaging, transportation, remediation and disposal services for generators of hazardous waste and low-level nuclear waste at licensed facilities throughout the United States.

The company has been in business since 1952.

This news release includes forward-looking statements that involve a number of risks and uncertainties. Financial forecasts involve estimates as to the future that may or may not prove to be accurate. The forecast information reflects numerous assumptions as to industry performance, general business and economic conditions, regulatory and legal requirements, taxes and other matters, many of which are beyond the control of the company. Similarly, this information assumes certain future business decisions that are subject to change. There can be no assurance that the results predicted will be realized. Actual results will vary from those presented by the forecasts and those variations may be material. -0-

                     AMERICAN ECOLOGY CORPORATION
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                        Proforma and Unaudited
                 ($ in 000's except per share amounts)

                                          Year Ended December 31,
                                       1998       1997        1996
                                    --------   --------    --------

Revenues                            $ 38,960   $ 41,522    $ 49,972
Operating costs                       23,545     23,219      33,571
                                    --------   --------    --------
    Gross profit                      15,415     18,303      16,401
Selling, general and
 administrative expenses              15,702     21,909      24,187
Impairment loss on long-lived assets      --         --       7,451
                                    --------   --------    --------

    Loss from operations                (287)    (3,606)    (15,237)
Investment income                       (618)    (1,203)       (932)
(Gain) or loss on sale of assets         (72)      (136)        (55)
Other expense                           (414)    (1,723)     (1,326)
                                    --------   --------    --------

  Gain or (loss) before income taxes     817       (544)    (12,924)
Income tax expense (benefit)              55        132      (1,517)
                                    --------   --------    --------

    Net income or (loss)                 762       (676)    (11,407)

Preferred stock dividends                417        760         465
                                    --------   --------    --------
    Net income or (loss) available
     to common shareholders           $  345    $(1,436)   $(11,872)
                                    ========   ========    ========
Basic earnings per share              $  .03    $  (.17)   $ (1.47)
                                    ========   ========    ========
Diluted earnings per share            $  .03    $  (.17)   $ (1.47)
                                    ========   ========    ========
Dividends paid per common share       $   --    $   --     $   --
                                    ========   ========    ========