Perma-Fix Announces Start of New Department of Energy Hanford Site Subcontract

Perma-Fix Environmental Services, Inc. announced the successful start of subcontract waste management and facility operations, through its East Tennessee Materials & Energy Corporation (M&EC) subsidiary, at the Department of Energy (DOE) Hanford Site.

On October 1, 2008 CH2M Hill Plateau Remediation Company (CHPRC) took control as the prime contractor of the DOE Hanford Site Plateau Remediation Contract. CH2M Hill, major subcontractors Fluor and AREVA, along with pre-selected small business subcontractors such as Perma-Fix’s M&EC subsidiary will now manage the cleanup of the Hanford Plateau as the CHPRC team. CHPRC was awarded a cost plus incentive fee contract valued at approximately $4.5 billion over ten years (a five-year base period with the option to extend it for an additional five years). The scope of the CHPRC contract includes treatment and disposal of various radioactive waste streams, groundwater remediation, management of spent nuclear fuel, disposition of nuclear materials, demolition of non-reactor nuclear facilities and environmental remediation activities. Perma-Fix M&EC will operate on the Hanford Site as M&EC PRC and will be responsible for the personnel and operation of various treatment and disposal facilities.

As a result of its participation in the CHPRC on-site contract, Perma-Fix expects to generate combined revenue of approximately $200 million – $250 million over the five year base period. This includes off-site revenue from associated waste treatment at the company’s four Mixed Waste treatment facilities.

Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, “We are excited to report a successful start to the management and operations work on the Hanford Site working with our prime contractor CH2M Hill and other team members to accomplish the important work of cleaning up the Central Plateau. The CHPRC team has the proven experience and track record needed to accomplish the aggressive cleanup goals established by DOE, and our M&EC subsidiary brings unique waste management capabilities on the Hanford Site as well as at our offsite treatment facilities that will play an important role in the cleanup mission.”

Perma-Fix Environmental Services, Inc., a national environmental services company, provides unique mixed waste and industrial waste management services. The company’s increased focus on nuclear services includes radioactive and mixed waste treatment services for hospitals, research labs and institutions, federal agencies, including DOE, DOD, and nuclear utilities. The company’s industrial services treat hazardous and non-hazardous waste for a variety of customers including, Fortune 500 companies, federal, state and local agencies and thousands of other clients. Nationwide, the company operates nine major waste treatment facilities.