Primary Energy Recycling Corporation Announces Decision to Not Extend Revolving Loan Provisions of Credit Agreement

Primary Energy Recycling Corporation announced today that after evaluating the Company’s liquidity position, it has determined that its current cash on hand of $14.4 million (at July 31, 2008) plus anticipated proceeds from operations are expected to be adequate to fund near term business operations and distributions. As a result, it has let the $15 million Revolving Loan provisions of its Credit Agreement expire. The Revolver had not been drawn for operational liquidity during its three year term. Even if extended, the Revolver would expire when the senior debt is refinanced, which could occur in early 2009. The cost to extend the Revolver for such a relatively short period was not warranted.

The Company owns a majority interest in Primary Energy Recycling Holdings LLC. Primary Energy, headquartered in Oak Brook, Illinois, indirectly owns and operates four recycled energy projects and a 50% interest in a pulverized coal facility (collectively, the “Projects”). The Projects have a combined electrical generating capacity of 283 megawatts and a combined steam generating capacity of 1.8 MMlbs/hour. Primary Energy creates value for its customers by capturing and recycling waste energy from industrial and electric generation processes and converting it into reliable and economical electricity and thermal energy for its customers’ use.
Website www.primaryenergyrecycling.com.