Synagro Announces a 20-Year Contract Extension

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Synagro Announces a 20-Year Contract Extension

Agreement with Woonsocket, R.I., Regional Biosolids Treatment Facilty is a 'Win-Win' Situation

HOUSTON, TEXAS, Nov. 6 -/E-Wire/-- Synagro Technologies Inc. (Nasdaq:SYGR), a full-service provider of wastewater residual management services, announced today that the city of Woonsocket has approved a 20-year extension of Synagro's contract to operate the Woonsocket, R.I., regional biosolids processing plant. The facility treats biosolids from regional wastewater plants servicing 40 area communities.

According to Mayor Susan D. Menard, "This agreement helps Woonsocket taxpayers in two ways. First, it provides a financial benefit for the city. Second, it reduces the city's risk for environmental problems." "Synagro is pleased that it will be providing a reliable and cost-effective management solution for New England biosolids customers over the next twenty years," explained Ross M. Patten, chairman of the board of Synagro. "It was a great team effort between the Mayor's office, the Woonsocket City Council and Synagro," Robert C. Boucher, Jr., Synagro's chief executive officer added.

As part of the deal, the Woonsocket facility will undergo a $10 million upgrade. These capital improvements will replace the current aging multiple-hearth incineration technology with new state-of-the-art fluidized bed incineration technology and add enclosed, odor-controlled receiving facilities to trap odors more efficiently. "Right now, we are working with 1930s technology," said Administration and Public Works Director Michael A. Annarummo. "Under this new agreement, Synagro will install and operate a state-of-the-art system that will make Woonsocket a model facility, save the city money and provide local residents with environmental benefits."

The upgrades are expected to be operational in 2005 and will be capable of processing approximately 85 dry tons of sewage sludge per day. Based upon the agreed terms, Synagro can generate revenues of approximately $270 million over the life of the contract.

Fluidized bed technology has been practiced since the 1980s and consists of essentially large vats of hot, molten sand which reduce the solids, totally eliminate the bacteria and produce clean ash as afinal product. The upgraded facility will utilize thermal treatment to reduce solids volumes by 70 percent and will reduce current facility emission levels by 50 to 75 percent.

The Woonsocket City Council had voted 6-0 on Oct. 6, 2003, in favor of a new 20-year pact with Synagro Technologies Inc. saying the long-term agreement with the Houston-based company will stabilize sewer rates and reduce odors coming from the city-owned sludge incinerator. The City Council granted final approval to the deal on Oct. 20, 2003, and authorized city officials to sign the contract extension.

Synagro is the largest national company focused on water and wastewater residuals management services in the United States, serving over 1,000 municipal and industrial water and wastewater generators in 35 states and the District of Columbia. The Company offers a range of water and wastewater residuals management services, focusing on the beneficial reuse of organic, nonhazardous residuals resulting from the water and wastewater treatment process, including collection and transportation, land application, thermal drying and pelletization, incineration, composting, alkaline stabilization, dewatering, cleanout services, wastewater treatment plant operations and maintenance, product marketing, and related record keeping and regulatory reporting services. For more information about Synagro Technologies Inc. and its residuals management services go to www.synagro.com or call [REDACTED-PHONE].

This press release contains certain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risks, uncertainties or other factors not under the Company's control which may cause the actual results, performance or achievement of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to (1) unseasonable weather, (2) changes in government regulations, (3) the ability to find, timely close, and integrate acquisitions, and (4) the ability to access debt and equity financing when needed. Other factors are discussed in the Company's periodic filings with the Securities and Exchange Commission.

Source: Synagro Technologies Inc.

Synagro Technologies Inc., Houston

Robert C. Boucher, Jr., [REDACTED-PHONE]

http://www.synagro.com

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