ADA-ES Contracts to Begin Construction of Activated Carbon Plant

ADA-ES, Inc. announced that a contract was placed through the Company’s engineering, procurement and construction (EPC) contractor for the mobilization of the site preparation work for what it expects will be the largest activated carbon (AC) manufacturing plant in North America when it comes on-line. This follows on last week’s announced contracts for key equipment needed for the production of AC. The initiation of the site work insures that the pilings and foundations are in place to support this equipment as well as the balance of the plant. Earth moving equipment is being mobilized at the site with earthwork scheduled to begin next week. ADA-ES believes that these contracts will help keep the Company on the critical path to maintain the schedule for the plant to start producing AC in the first half of 2010.

As part of a financing plan to maintain working capital as ADA-ES proceeds on this aggressive construction project, the Company closed on a private placement of 909,092 shares of common stock at $7.70 per share with qualified institutional investors. The securities were priced at 90% of the 20-day volume weighted average price prior to the closing date. The shares sold in the private placement are not registered under the 1933 Act; however the Company will use its reasonable efforts to register the shares sold in the private placement within 20 days. Wedbush Morgan acted as the lead placement agent for this private placement.

The Company intends to apply the net proceeds towards the development of the AC plant. ADA-ES expects that its proposed strategic equity partner will match the Company’s investment in the AC plant. As previously announced, the Company has obtained the final construction permit, purchased the building site and is in the process of finalizing terms, pricing and schedule on the engineering/construction contract, which was delayed several months due in part to the EPC firm being acquired by another Company.

Dr. Michael Durham, President and CEO of ADA-ES, said, “We are very pleased to consummate this transaction and are gratified by the confidence our new investors have placed in our future. This financing brings us still another step closer toward getting our AC plant in Northwest Louisiana up and running in the first half of 2010. We have set our sights on becoming the market leader in engineering services, equipment sales and AC production for the mercury control market, and with groundbreaking now expected to begin next week, we are approaching the goal line.”