USA Biomass Corporation PRESSRELEASE
52300 Enterprise WayCoachella, CA
92236
For Release: December 2, 1998
USA BiomassContact: Barry Goverman, Vice President (781) 341-1348
bgoverman@usabiomass.com
Investor Relations: WPH Consultants, Philippe Niemetz (800) 477-7570
wphconsultants@msn.com
USA Biomass Corporation Considers Discontinuing Certain BusinessSegments
Coachella, California, December 2, 1998 -- USA Biomass Corporation ("USA
Biomass" or "the Company", USBC: NASDAQ) announced today that it is in
the process of determining whether to discontinue certain of its
operations, in order to focus on its rapidly growing waste transport
and greenwaste operations. The Company had filed a Form12b-25 with the
SEC on December 1, 1998, to allow it to file its Form 10-KSB by December
14, 1998.The Company expects to report a net loss for the fiscal year ended
August 31, 1998 exceeding $7,000,000, due largely to a one-time charge
for the write down of certain real estate assets. The Company reported
net income of $2,176,000 for fiscal 1997.
USA Biomass Chairman and Chief Executive Officer Fred H. Behrens, said:
"Recently a strategic decision to focus our efforts on growing our
Biomass operations, and to capitalize on new opportunities available to
us. While our decision to divest ourselves of certain real estate assets
has resulted in a significant one-time write off, it will generate
working capital for debt reduction and expansion."
USA Biomass is currently the only Nasdaq-traded company in California
with a fully integrated biomass operation (green waste recycling,
processing, transport, and by-product sales). The Company recycles and
processes green waste/biomass from California's waste stream, with the
end products targeted for the landscape, fertilizer/soil amendment,
co-generation (boiler fuel), and other manufacturing industries. The
Company has an exclusive five-year transport services contract with
Waste Management, Inc., with options for two consecutive five-year
extensions. Under a separate agreement, USA Biomass is also handling
the diversion of green waste collected by Waste Management away from
California's landfills. The Company also operates agricultural and real
estate land planning divisions.
USA Biomass maintains an Internet site at www.usabiomass.com.
This press release contains forward-looking statements pursuant to the
"Safe Harbor" provisions of the Private Securities Litigation Reform Act
of 1995. - With the exception of historical information, the matters
discussed in this press release are "forward-looking statements" that
involve a number of risks and uncertainties. The actual future results
of the Company could differ significantly from those statements due to
factors including, but not limited to: risks associated with the ability
to profitably perform on its contracts; managing the Company's growth;
the continuation in the growth of the Company's biomass business, the
continuation in general economic conditions; and factors discussed in
the Company's Form 12b-25 Notification of Late Filing filed on December
1, 1998, its annual report on Form 10-KSB for the fiscal year ended
August 31, 1997 and quarterly reports on Form 10-QSB for November 30,
1997, February 28 1998 and May 31, 1998.
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