ADA-ES Reaffirms Activated Carbon Market Expectations

ADA-ES, Inc. reaffirmed its market expectations with regard to activated carbon (AC) for controlling mercury emission from coal-fired electrical generating units.

Dr. Michael D. Durham, President and CEO of ADA-ES, stated, “The mercury control market continues to grow as a result of existing regulations in over 20 states and Canadian provinces. Although a few analysts have predicted a potential over-supply of AC, we are not seeing that at all; rather, AC prices have been increasing, reflecting higher demand by the power industry. In fact, if there is a company that has any available supply of high quality AC in 2009 and beyond, foreign or domestic, we would certainly be interested in talking to them. We are confident that we could sell whatever volumes we can either produce or purchase.”

In September, ADA-ES announced a firm fixed-price contract with Luminant Generation Company, LLC and ADA’s subsidiary Red River Environmental Products, LLC with expected gross revenues of approximately $125 million over the initial term of the contract. This could increase by an additional $20 million to $40 million before the end of the year. The Company had previously announced another AC sales contract valued in excess of $35 million. Over the past three months, the Company has had follow-up discussions with several potential customers for long-term AC sales contracts in excess of $500 million.

Dr. Durham continued, “ACI systems currently dominate our revenues and are the precursors for the sales of AC. ACI system activity has increased over the last few months. Recent business developments in this regard include:

* Release for engineering on two contracts in the Midwest with full contract releases expected soon
* Notification from a repeat customer of the intent to award for a dual-silo system
* Notification of intent to award for an ACI system and optimization testing
* Notification from an OEM that they had been awarded the equipment supply contract on which ADA bid the ACI system.

Most of these ACI systems will be for units that must be installed in 2009 In addition, we have seen a significant increase in bid and proposal activity. Since the last update in August, we have bid or are bidding on 16 ACI system proposals.”

About ADA-ES

ADA-ES is a leader in clean coal technology and the associated specialty chemicals. The Company develops and implements proprietary environmental technology and specialty chemicals that enable coal-fueled power plants to enhance existing air pollution control equipment, maximize capacity and improve operating efficiencies. Through its largest and fastest-growing segment, Mercury Emission Control, ADA-ES supplies activated carbon injection systems, activated carbon, mercury measurement instrumentation, and related services. To meet the needs of the power industry for mercury control, the Company is developing state-of-the-art facilities to produce activated carbon (AC) with the first plant projected to come on-line in 2010. Additionally, the Company is developing technologies for power plants to address issues related to the emissions of carbon dioxide.