Compost America Holding Company, Inc. Makes Announcement.

Business Editors

NEWARK, N.J.--(BUSINESS WIRE)--June 19, 2000

The Office of the President of Compost America Holding Company, Inc. ("Company") (Electronic Pink Sheets: CAHC) announced today that the Company had completed the sale to Synagro Technologies, Inc., ("Synagro") (NASDAQ SC: SYGR), a Delaware corporation, of all of the shares of the Company's wholly-owned subsidiary, Environmental Protection & Improvement Company, Inc. ("EPIC"), a New Jersey corporation, for a purchase price of approximately $37.5 million plus an earn-out and other adjustments which could total an additional several million dollars.

The net cash proceeds from this sale, and from a shareholder loan at closing, estimated to be approximately $41 million, will be used primarily to (1) repay long term debt, (2) increase to approximately 24.73% the Company's ownership interest in American Marine Rail, LLC ("AMR"), a developer of a proposed 5,200 tons per day solid waste transfer station in the Bronx, New York, (3) pay EPIC employee termination costs, (4) repay short-term loans to the Company's Class A and Class C Preferred shareholders, (5) settle various notes and accounts payable and other creditors' claims and (6) provide working capital for the Company to conduct its business and pursue its development and business plan. The Company has granted to an entity controlled by the holders of its Class A and Class C Preferred Stock liens on the earn-out (up to a maximum of $6.2 million) and on its interests in AMR (up to a maximum of $3 million) in order to secure newly granted redemption rights in such preferred stock.

The Company is in the initial stage of developing in-vessel composting facilities and waste transfer stations in the metropolitan New York and Miami, Florida areas.