American Ecology Receives $11.8 Million Payment from Central Interstate ..

[struggle4progress]

.. Compact; Company Claim on Proceeds from Nebraska Litigation Settlement Resolved

BOISE, Idaho--(BUSINESS WIRE)--Aug. 2, 2005--Stephen Romano, President and Chief Executive Officer of American Ecology Corporation (NASDAQ:ECOL) today announced receipt of $11,804,739 from the Central Interstate Low-Level Radioactive Waste Compact ("Compact"). The payment fully resolves subsidiary US Ecology's claim on proceeds from an August 9, 2004 settlement of Entergy et al vs. State of Nebraska, a lawsuit brought against the State of Nebraska for bad faith in the licensing process for a formerly proposed low-level radioactive waste ("LLRW") disposal facility near Butte, Nebraska.


"We are pleased with this expeditious resolution of our claim on the Nebraska litigation settlement proceeds," stated Romano, adding "This $11.8 million payment enhances American Ecology's already strong cash position in a year we are making substantial capital investments in our operating facilities to implement the Company's long-term growth strategy."

The $11.8 million payment from the Compact reflects the return of the contributions made by US Ecology to the project plus interest. The Company previously recognized a $6.5 million deferred site development asset for its investment in the Nebraska project. A gain of approximately $5.3 million will be recognized in the current quarter as Other Income based on claim resolution and payment.

US Ecology is working with the Compact to expeditiously close out its contract for development of a LLRW disposal facility in the five-state Compact region. The Company will incur limited out-of-pocket expenses to transfer records and perform other project transition tasks. <snip>

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