American Ecology signs letter of intent with Greenfield Environmental.

SAN DIEGO--(BUSINESS WIRE)--July 20, 1995--American Ecology Corp. ("AEC"), a chemical and low-level radioactive waste disposal and services company, with headquarters in Houston, Thursday announced that it has signed a letter of intent to purchase Greenfield Environmental ("Greenfield"), a privately owned environmental services company based in San Diego, for 187.500 shares of newly issued preferred stock of American Ecology, valued at $18.7 million.

Greenfield offers hazardous waste management services including lab packing, specialty decontamination, small quantity generator pick-up services, emergency response, household hazardous waste programs, DRMO services, transportation, treatment and recycling. Greenfield operates fully permitted treatment and storage facilities in Chula Vista, Calif., and Phoenix.

In connection with the proposed acquisition, the company is forming a new subsidiary, American Ecology Chemical Services Inc. ("AECS"), which will hold all of the company's chemical waste operations, including Greenfield.

This new subsidiary will combine the extensive front-end hazardous waste services capability of Greenfield with American Ecology's hazardous waste disposal facilities in Beatty, Nev., and Robstown, Texas, and its fuels blending and deepwell disposal facility in Winona, Texas, creating the most comprehensive hazardous waste management organization in the southwestern United States.

The preferred stock issued by the company to current Greenfield shareholders would be mandatorily convertible into shares of AECS common stock at a price equal to the greater of $6 per share or the average of the company's common stock closing price for the 30 days prior to the conversion date.

The closing of the acquisition is subject to the negotiation, execution and delivery of a definitive agreement, the satisfactory completion of due diligence and other customary conditions to closing, bank consent and approval by the board of directors of American Ecology and Greenfield. The transaction is expected to close in approximately 90 days.

"Greenfield is both a leading provider of hazardous waste management services in California, Arizona and Baja Mexico, and the largest privately owned hazardous waste transportation company in the western United States," commented Jack K. Lemley, chief executive officer of American Ecology. "This proposed merger, in conjunction with our current Nevada and Texas facilities, significantly broadens our market coverage on both the West Coast and the border with Mexico.

"This proposed merger between the resources and service capability of Greenfield in California, Arizona and Baja and American Ecology's disposal and treatment assets in Nevada and Texas along with exempt transfer facilities servicing Mexico gives this new company the ability to offer unparalleled hazardous waste management services to customers throughout the western and southwestern United States," stated Tim Sparks, president and chief executive officer of Greenfield Environmental.

"This marriage is good for the shareholders of Greenfield, the shareholders of American Ecology and our customers who have come to expect efficient and cost-effective hazardous waste management services."

American Ecology operates a chemical waste disposal facility in Nevada and two in Texas. The company also operates a low-level radioactive waste (LLRW) disposal facility in Washington, has received a license approval for a similar facility in California, has a license application pending for a LLRW disposal facility in Nebraska and operates a LLRW processing facility in Tennessee.

Services provided by the company include waste packaging, transportation, consulting, pretreatment, disposal, fuels blending, recycling and clean-up services. The company's common stock trades on the NASDAQ Stock Market under the symbol ECOL.

CONTACT: Greenfield Environmental, San Diego

David Merk, 619/673-6000

or

American Ecology, Houston

C. Clifford Wright Jr., 713/624-1902