<b>Hi-Rise Reports Quarterly Loss</b>

Hi-Rise Recycling Systems reported revenues of $63.3 million for last quarterly year, compared to revenue of slightly less than $60 million the same time the previous year. The company noted that the increase was due primarily to acquisitions completed during the quarter.

Exempting the increased revenues, the company reported a net loss of $22.8 million. The net loss reflects certain charges amounting to approximately $7.5 million, including charges related to start-up and expansion inefficiencies of certain new and existing facilities, severance and relocation activities related to these facilities, charges to reduce current inventory values, the recording of increased reserves for slow-moving and potentially obsolete inventory, termination of distributor accounts, losses incurred on the re-negotiation of certain lease receivable accounts, charges incurred due to write-offs for bad debts and write-offs pertaining to failed acquisitions.

Softened demand for its products due to competition and decreased equipment expenditures from its largest customers were also major contributors to the poor results. In addition, the Company also cited increased raw material costs (primarily steel), and the introduction of aggressive competitive pricing to certain of its solid waste division markets.