<B>Casella Reports Quarterly Figures, Makes Moves</B>

Casella Reports Quarterly Figures

Casella Waste Systems, Inc reported financial results for the fourth quarter of its 2000 fiscal year. For the quarter ended April 30, 2000, the company reported net income of $4.3 million, versus $1.4 million for the same period last year, a 207 percent increase.

Revenue for the quarter was $134.0 million versus $46.4 million for the same period a year ago. EBITDA increased 156 percent to $30.0 million, compared to $11.7 million in the same period last year. For the fiscal year ended April 30, the company reported net income of $16.5 million; revenues for the year were $337.3 million. EBITDA was $84.4 million.

"Both our company's performance and the markets we serve continue to be marked by strong underlying fundamentals," John Casella, president and CEO of Casella Waste Systems, said. "Once again, one of the most compelling indicators of this fundamental strength is the consistent delivery of our EBITDA margin targets."

The company also said it is adjusting its projected earnings per share for fiscal year 2001. "We remain driven to create long-term value, and continue to focus on EBITDA as our performance yardstick," Casella said. "The shift in EBITDA for 2001 to $133 million from $140 million is primarily due to moving our cellulose insulation business into a joint venture and discontinuing our plastics operation," Casella said. "It is an indication that our core businesses will continue to perform as expected.

Casella/L-P Combining Cellulose Business

Casella Waste Management entered into an agreement with Louisiana-Pacific Corp. to combine their respective cellulose insulation businesses into a single operating entity under a joint venture agreement effective July 1. The new company, to be known as U.S. GreenFiber LLC, is an equally owned joint venture formed through the combination of L-P's GreenStone Industries Inc. and Casella Waste Systems' U.S. Fibers operations. The new entity will supply cellulose insulation to existing residential construction, retail and manufactured housing supply channels. GreenFiber's operations will be handled by a single management team in Charlotte, N.C. "This joint venture combines L-P's manufacturing expertise with our capacity to be a stable long-term supplier of high quality fiber, making GreenFiber the nation's lowest cost, largest manufacturer of cellulose insulation," Casella said. "

The combined venture will consist of 12 facilities located in the United States, with a significant presence in the Southeast.

While U.S. Fibers was not by any stretch a 'core' solid waste business, there is a compelling opportunity to be part of building a strong, cash flow-generating operation that, at the very least, is a path towards monetizing that business at a higher valuation than currently exists," Casella said. "This restructuring gives us this flexibility, at the same time mitigating its financial impact."

When the two divisions are combined the company will have around 10 facilities in the United States. Casella will be one of the largest suppliers of recovered fiber to the facility.

Plastics Manufacturing Business For Sale

Casella Waste Management announced that it is selling its plastics manufacturing business, and is carrying the business as an asset held for sale at its realizable net value. "This line of business has not performed to expectations and, it does not warrant the required investment of management time and resources," said John Casella, president and CEO of Casella Waste Management. "As a result, it will be sold."

The plastics division manufactures plastic pellets from scrap plastics. The plastics division consists of two plants in North Carolina and one in Maryland.