Lawsuit Filed Against U.S. Liquids For Breach of Fiduciary Duties; Scott & Scott LLC Announces Filing of Derivative Complaint.

COLCHESTER, Conn.--(BUSINESS WIRE)--Sept. 24, 1999--

Scott & Scott, LLC (800)/404-7770 ([e-mail]) or ([e-mail]) has filed a derivative complaint for violations of fiduciary duties and for injunctive relief and damages against U.S. Liquids (NYSE:USL).

On September 9, 1999, U.S. Liquids announced that the reopening of that portion of its Detroit facility used for chemical fixation and solidification services will be delayed more than the Company had previously stated. The Company indicated that the facility was contaminated with PCBs. As a result of these events, the Company will take a one-time charge during the third quarter ending September 30, 1999. The Company now anticipates that its revenues for the third quarter ending September 30, 1999, will be in the range of $60 million to $61 million; revenues for the fourth quarter will be between $59 million and $60 million; revenues for the year ending December 31, 1999 will be in the range of $233 million to $234 million. The Company anticipates that earnings for the third quarter will be in the range of $0.03 to $0.05 per share; earnings for the fourth quarter will be between $0.15 per share; and earnings for the year will be from $0.68 to $0.75 per share. The one-time charge for remediation represents $0.20 to $0.14 per share for the third quarter and $0.21 to $0.14 per share for 1999.

This is a stockholder's derivative action brought on behalf of USL by one of its shareholders against its entire board of directors and several of the Corporation's top officers for breach of fiduciary duty in misappropriating and misusing internal, proprietary, non-public, material, adverse corporate information to personally profit by inflating USL's earnings and generating ill-gotten bonuses which were tied to earnings. It also alleges the failing to properly oversee or implement federal or state laws prohibiting improper waste disposal as well as USL's own policies and rules restricting the misuse of internal corporation information for such purposes and for causing USL to be sued for, and to be exposed to, liability for violations of the anti-fraud provisions of the Federal Securities Laws, Federal and State environmental laws by making or allowing to be made a series of false and misleading statements to the securities markets about USL's business, financial results, governmental compliance and prospects for earnings growth; and for illegally dumping toxic waste into America's water supply and falsifying tests to deceive the government.

Scott & Scott, LLC is a Connecticut-based law firm engaged in the representation of both public and private companies in litigation and transactional work. The firm also has a significant practice in antitrust, securities and other complex litigation, where it regularly represents individuals, companies and other entities.

Scott & Scott, LLC prides itself on its ongoing dedication to client satisfaction and client communication. The firm has a nationwide practice. It regularly works with other firms on major litigation and it co-counsels only with those firms of the highest quality and reputation so as to ensure the best representation and communication with the class.

If you acquired shares, options or bonds in U.S. Liquids and would like to discuss the matters above with an attorney, please contact: Neil Rothstein, Esq. of Scott & Scott, LLC 800/404-7770, or 619/338-3887. E-mail at [e-mail].