EarthCare Announces Plans to Sell Its EarthAmerica and EarthLiquids Divisions; EarthCare Amends Its Credit Agreement

Apr 19, 2001, 01:00 ET from EarthCare Company

    DALLAS, April 19 /PRNewswire/ -- 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.
 
 

SOURCE EarthCare Company
    DALLAS, April 19 /PRNewswire/ -- 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.
 
 SOURCE  EarthCare Company