EarthCare Announces Fiscal Year 2000 Results

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TO BUSINESS AND ENVIRONMENTAL EDITORS:

EarthCare Announces Fiscal Year 2000 Results

DALLAS, TEXAS, Apr. 19 -/E-Wire/-- EarthCare Company (Nasdaq: ECCO) reported today operating results for the year ended December 31, 2000. These operating results are significantly affected by the losses on the planned sales of the EarthAmerica and EarthLiquids divisions and the loss on the sale of the Allen Tate software division. For fiscal year 2000, EarthCare's revenues from continuing operations consisted of $700,000 in management fees from Liberty Waste, a solid waste company operating in and around Tampa, Florida. In December 2000, EarthCare completed its acquisition of Liberty Waste and changed its name to EarthCare Resource Management of Florida, Inc. ("ERMF"). There were no continuing revenues during fiscal year 1999. For the year ended December 31, 2000, the net loss from continuing operations amounted to $6.6 million as compared to $5.8 million in 1999. The increase in the net loss is primarily due to additional interest expense incurred during 2000.

On April 12, 2001, EarthCare's Board of Directors approved a plan to sell the Company's EarthAmerica and EarthLiquids divisions. During the fourth quarter of 2000, EarthCare sold its environmental compliance software company, Allen Tate Commercial Software. These three divisions are being reported as discontinued operations. The continuing operations of the Company consist of ERMF and EarthCare's corporate office.

On a pro forma basis, assuming that EarthCare had acquired ERMF at the beginning of 1999, EarthCare's pro forma revenues would have been $18.5 million in 2000 and $5.9 million in 1999. This significant growth resulted from a full year of operating a franchise solid waste collection contract in Hillsborough County, Florida, and to 24% volume growth in ERMF's commercial collection solid waste business. On a pro forma basis, assuming that the ERMF acquisition was completed at the beginning of 1999, EarthCare's net loss in 2000 would have been $6.7 million as compared to a net loss of $6.3 million in 1999.

EarthCare expects to reduce the level of its corporate expenses during 2001 following the sale of its EarthAmerica and EarthLiquids divisions. Due in part to the timing of reducing its corporate infrastructure and to the non-cash interest expense on its subordinated debentures, EarthCare expects to report a loss from continuing operations in 2001.

Don Moorehead, Chairman and CEO of EarthCare, said, "We are pleased with the growth of our solid waste operations in Florida during 2000. We are going to emphasize an improved capital structure during 2001 and take steps necessary to return to profitable operations."

EarthCare also announced the operating results for its three discontinued divisions, EarthAmerica, EarthLiquids and Allen Tate. EarthAmerica reported revenue of $47.9 million in 2000 as compared to $38.7 million in 1999. The growth was primarily due to the acquisition of All County Resource Management Corporation in March 2000. EarthAmerica reported a loss from operations of $6.1 million in 2000 as compared to $7.7 million in 1999. This loss in 2000 resulted from significant investments made in sales and marketing programs, development of a new operating system for the division, changes in service center management, lack of a successful advertising program, adverse weather conditions during the year in the Northeast and Southeast U.S. and a reduction in plumbing business volume. EarthAmerica reported a net loss of $11.6 million in 2000 as compared to a net loss of $9.3 million in 1999. In addition to the factors cited, this loss is primarily due to the significantly higher level of interest expense during 2000.

EarthLiquids reported revenues of $36.8 million in 2000 as compared to $3.1 million in 1999. The increase was primarily due to the acquisition of International Petroleum Corporation and a full year of operations for Magnum Environmental. EarthLiquids also reported operating income of $3.8 million in 2000 and $0.2 million in 1999 for the same reasons. EarthLiquids' net income for 2000 was $0.5 million compared to a net loss of $0.3 million for 1999.

EarthCare's former environmental compliance software division reported a loss from operations of $1.9 million in 2000 versus a loss of $0.5 million in 1999 and a net loss of $2.2 million in 2000 versus a loss of $0.5 million in 1999. In October 2000, EarthCare sold this division and recorded a loss from the sale of $4.0 million.

EarthCare also reported a loss from the planned sale of its EarthAmerica and EarthLiquids divisions of $60.4 million, based on an expected net sales price of $54 million.

Don Moorehead, Chairman and CEO of EarthCare, said, "We are obviously disappointed with the performance of our EarthAmerica and Allen Tate operations. While we are satisfied with the performance of our EarthLiquids division during its first full year of operations, we also recognize that we need to complete its divestiture in order to move forward in the solid waste business. The sales of EarthAmerica and EarthLiquids will leave EarthCare in an excellent position to continue our positive growth trends in the solid waste industry."

On April 9, 2001, EarthCare announced its preliminary results for fiscal year 2000. These operating results have significantly changed because the EarthAmerica and EarthLiquids divisions are reported as discontinued operations.

EarthCare Company is a nonhazardous waste services company with business units serving the solid and liquid waste needs of a variety of residential, commercial, municipal and industrial customers.

Statements made in this press release that express EarthCare's or management's intentions, plans, beliefs, expectations or predictions of future events, including preliminary estimates of financial results and guidance for future periods, are forward-looking statements. The words "believe," "expect," "intend," "estimate," "anticipate," "will" and similar expressions are intended to further identify such forward-looking statements. It is important to note that the company's actual results or performance could differ materially from those anticipated or projected in such forward-looking statements. Other factors that could cause EarthCare's actual results or performance to differ materially include risks and uncertainties relating to EarthCare's financial condition, market demand and acceptance of EarthCare's services, competition, as well as the risks discussed under the heading "Risk Factors" in EarthCare's annual report on Form 10-K for the year ended December 31, 2000, as filed with the Securities and Exchange Commission. The forward-looking statements contained herein represent the judgment of EarthCare as of the date of this press release, and EarthCare expressly disclaims any intent, obligation or undertaking to update or revise such forward-looking statements to reflect any change in EarthCare's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

EarthCare Company Consolidated Statements of Operations

Year ended December 31, 2000 1999 1998

Revenues $ 702,477 $ --- $ ---

Expenses: Cost of operations --- --- --- General and administrative 5,791,546 5,148,994 2,821,363 Sales, marketing and development --- 273,370 78,457 Depreciation and amortization 154,872 146,556 103,624 Operating expenses 5,946,418 5,568,920 3,003,444

Operating loss (5,243,941) (5,568,920) (3,003,444)

Interest expense 1,415,313 235,832 94,523 Other (101,221) (40,619) ---

Net loss before income tax provision (benefit) (6,558,033) (5,764,133) (3,097,967)

Income tax provision (benefit) --- --- (823,002)

Loss from continuing operations (6,558,033) (5,764,133) (2,274,965)

Discontinued operations: Income (loss) from discontinued operations: EarthAmerica (11,627,417) (9,859,742) 845,875 EarthLiquids 503,023 (344,182) --- Allen Tate (2,239,454) (478,119) --- Income (loss) from discontinued operations (13,363,848) (10,682,043) 845,875

Loss from sale of discontinued operations: EarthAmerica (32,043,044) --- --- EarthLiquids (28,380,660) --- --- Allen Tate (4,021,018) --- --- Loss from sale of discontinued operations (64,444,722) --- ---

Income (loss) from discontinued operations (77,808,570) (10,682,043) 845,875

Loss before extraordinary item (84,366,603) (16,446,176) (1,429,090)

Extraordinary item - gain on early retirement of debt (net of income taxes of $53,000) --- 86,817 ---

Net loss (84,366,603) (16,359,359) (1,429,090) Dividends and accretion of discount on 10% Preferred (62,632) --- ---

Net loss available to common stockholders $(84,429,235) $(16,359,359) $(1,429,090)

Net loss per share - basic and diluted: Continuing operations $(0.50) $(0.56) $(0.27) Discontinued operations (5.94) (1.03) 0.10 Dividends, accretion of discount on preferred and extraordinary item --- --- --- Net loss $(6.44) $(1.59) $(0.17)

Weighted average number of common shares 13,101,022 10,321,164 8,427,407

EarthCare Company Consolidated Balance Sheets

December 31, 2000 1999

Current assets: Cash and cash equivalents $1,784,361 $281,995 Accounts receivable, net of allowance for doubtful accounts of $610,000 2,450,983 --- Prepaid expenses and other current assets 734,866 611,040 Net assets of discontinued operations 56,801,400 5,439,440 Total current assets 61,771,610 6,332,475

Property, plant and equipment, net 15,472,481 941,701 Intangible assets, net 7,311,210 --- Other long-term assets 4,050,065 2,073,611 Net assets of discontinued operations --- 61,344,221

Total assets $88,605,366 $70,692,008

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities: Accounts payable $2,099,158 $1,606,633 Accrued liabilities 15,972,512 2,021,045 Current portion of long-term debt 63,177,353 278,434 Total current liabilities 81,249,023 3,906,112

Long-term debt 38,965,666 47,170,172

Commitments and contingencies

Mandatory redeemable convertible preferred stock 10,800,248 ---

Stockholders' equity (deficit): Preferred stock, $.0001 par value; 30,000,000 shares authorized, none issued Common stock, $.0001 par value; 70,000,000 shares authorized, 14,569,349 and 11,250,793 shares issued, respectively 1,457 1,125 Additional paid-in capital 60,013,157 37,661,400 Accumulated deficit (102,424,185) (18,046,801) Total stockholders' equity (deficit) (42,409,571) 19,615,724

Total liabilities and stockholders' equity (deficit) $88,605,366 $70,692,008

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