Capital Environmental Acquiring Florida Recycling Services

Capital Environmental Resource Inc. and its wholly owned subsidiary, Waste Services, Inc., have entered into a definitive agreement to acquire all of the issued shares of Florida Recycling Services, Inc. for about $128 million in cash and the issuance of approximately 3.25 million common shares.

FRS's operations are based in Central Florida, primarily servicing Orlando, Daytona, Fort Myers and Tampa areas. Its annual revenue for the year ended December 31, 2002, was approximately $85 million.

FRS's operations consist of 8 collection companies servicing approximately 20,000 commercial and 320,000 residential customers, with approximately 342 vehicles. It also operates 2 transfer/processing facilities and has a third facility under development.

When FRS is combined with Capital's existing Florida operations, and the assets to be acquired from Allied Waste Industries, Inc., Capital's Florida operations will consist of 13 collection companies, 4 landfills, 6 transfer/processing facilities and 4 recycling facilities with approximately 665 vehicles, servicing approximately 35,000 commercial and 550,000 residential customers.

"The FRS acquisition, which complements the assets we are acquiring from Allied, will greatly enhance our presence in additional areas in Central Florida. Additionally, FRS's collection and transfer capabilities in the greater Orlando area will allow for significant internalization of waste volume into our Omni landfill, which is expected to open in January 2004," said David Sutherland-Yoest, Capital's chairman and CEO.