Fitch Rates CPCFA VRD Rev Bonds Ser 2000A `AAA/F1+'.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 16, 2000

California Pollution Control Financing Authority's variable rate demand solid waste disposal revenue bonds (MarBorg Industries Project), series 2000A are rated `AAA/F1+' by Fitch. The rating is based on the support of a confirming letter of credit (CLOC) issued by the California State Teachers' Retirement System (`STRS', a unit of the State of California). The STRS CLOC provides full coverage of principal plus 46 days' interest at 12% based on a year of 365 days. The underlying letter of credit (LOC) is issued by Santa Barbara Bank & Trust and provides full coverage of principal and interest payments due on the bonds during the weekly interest rate mode, as well as purchase price. The LOC is sized to cover the principal amount, or principal portion of the purchase price, plus 46 days of accrued interest at 12%, based on a 365/366 day year, to pay for interest when due or the interest portion of the purchase price and has an expiration date of June 21, 2005.

The trustee will draw on the STRS confirming LOC only if Santa Barbara Bank & Trust fails to honor a draw on its LOC or the Bonds are accelerated. The Bonds will be immediately accelerated if: 1) Santa Barbara Bank & Trust repudiates its LOC or fails to honor a draw thereon; 2) the LOC is not reinstated or an event of default under the Reimbursement Agreement occurs; 3) the occurrence of an act of bankruptcy with respect to Santa Barbara Bank & Trust and; 4) upon receipt by the trustee of a notice of an event of termination under the confirming agreement that leads to a termination of the CLOC.

Fitch's rating will expire on the earliest to occur of (1) the scheduled expiration date of the confirming LOC, June 22, 2002, unless such date is extended pursuant to the terms of the CLOC, (2) any prior termination of the confirming LOC or (3) upon defeasance of the bonds.

The interest rate is set at a weekly rate determined by the remarketing agent, Westhoff, Cone & Holmstedt, and interest is paid on the first Wednesday of each month. The bonds may be converted to a term rate. A mandatory tender occurs upon any such conversion. While in a weekly rate period, bondholders have the option of tendering their bonds for purchase on any business day, following seven days prior notice. During the weekly mode, bonds are subject to optional redemption at par on any interest payment date.

Bonds are also subject to mandatory redemption upon (1) a determination of taxability of the bonds; (2) five days prior to the expiration date of the LOC or CLOC if no alternate LOC is in place; and (3) five days prior to the date when the STRS CLOC will be terminated. A notice of an event of termination under this agreement, which includes the bankruptcy or insolvency of the Santa Barbara Bank & Trust, leads to an expiration of the confirming LOC 90 days after such notice is given to the Trustee.

The proceeds of the bonds will be used for the purpose of financing the acquisition, expansion, construction, and equipping of solid waste disposal facilities in the County of Santa Barbara, California.

Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance Markets worldwide.