EarthCare Announces Plans to Sell Its EarthAmerica and EarthLiquids Divisions

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TO BUSINESS AND ENVIRONMENTAL EDITORS:

EarthCare Announces Plans to Sell Its EarthAmerica and EarthLiquids Divisions

EarthCare Amends Its Credit Agreement

TEXAS, DALLAS, Apr. 19 -/E-Wire/-- EarthCare Company (Nasdaq: ECCO) announced today that on April 12, 2001 its Board of Directors approved a plan to sell both its EarthAmerica and EarthLiquids divisions. EarthCare also announced that it is negotiating with two strategic buyers to sell its EarthAmerica and EarthLiquids divisions. Subject to normal terms and conditions, EarthCare expects to complete the sale of its EarthAmerica division by the end of the second quarter of 2001 and the sale of its EarthLiquids division during the third quarter of 2001. EarthCare, however, has yet to reach an agreement with either buyer and can provide no assurance that it will be able to complete either transaction on favorable terms, or at all. Based on the expected net sales prices for the two divisions of approximately $54 million, the Company is reporting a net loss from the planned sales of approximately $60.4 million.

EarthCare also announced that it amended its Credit Agreement with Bank of America N.A. and Fleet Bank N.A. Under the terms of the amendment, EarthCare is required to sell its EarthAmerica division by April 30, 2001 and sell its EarthLiquids division by May 31, 2001 or hire a financial advisor to assist it in such a sale. The Company is also required to use the net proceeds from the sales to pay down its senior credit facility.

Don Moorehead, Chairman and CEO of EarthCare, said, "The planned sales of our EarthAmerica and EarthLiquids divisions represents another milestone in our previously announced plans to focus on the solid waste industry and to seek strategic and financing alternatives for our non-hazardous liquid waste businesses. We believe that EarthCare will be in a better position to continue with our strategic plans once we complete the sales of these two divisions."

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 plans to sell EarthCare's EarthAmerica and EarthLiquids divisions, the anticipated sales prices for such sales and the resulting loss on the sales, 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 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.

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