<b>Casella Reports Quarterly Earnings</B>

Casella Waste Systems reported net income of $70,000 for the most recently completed quarter.

Revenue for the quarter was $120.8 million. The results for the quarter are pro forma to reflect the elimination of the company's fifty percent share of restructuring charges recorded by its U.S. GreenFiber joint venture; the elimination of a non-cash charge for the company's scrap tire recycling operation; and the exclusion of the gain on sale of Bangor Hydro warrants.

The company also announced it has signed a purchase and sale agreement with an investor group to sell its scrap tire recycling business as part of its effort to sell non-core assets. The transaction is subject to conditions specified in the purchase and sale agreement, including the satisfactory completion of the purchaser's due diligence review.

Concurrently, the company offered additional details of its strategic plan to focus on its regional solid waste franchise through a comprehensive program to divest non-core businesses.

Including the scrap tire recycling business, management has identified the following non-core businesses sold or targeted for sale thus far under its strategic divestiture plan:

Scrap tire recycling (Recovery Technologies Group); ash recycling; Non-core waste to energy (includes PERC) and biofuel plants; Wood waste recycling; Waste remediation (Total Waste Management); and Plastic recycling.