Here it is:
OUTH RIVER, N.J.--(BUSINESS WIRE)--Jan. 27, 1998--IDM Environmental Corp.
(NASDAQ:IDMC, IDMCW) and its consortium have established a program, which includes
significant participation by multinational industrial investors, for the revitalization and
re-industrialization of the Energiewerke Nord site, in Lubmin, Germany.
The re-industrialization program will be performed in conjunction with the decommissioning
and waste management/disposal activities for six VVER 440 nuclear power plants in Lubmin,
Germany, and one small reactor plant in Rheinsberg, Germany. The centerpiece of this
program is the privatization of Energiewerke Nord, GmbH (EWN), the state-owned company
established to undertake the decommissioning/waste management work.
The plants in Lubmin and Rheinsberg ceased operation in 1990, shortly after German
unification and decommissioning was formally authorized by the Government under the
German Atomic Law (the Atomgesetz). To finance the project, the German Government has
set aside a reserve of DM 6.209 billion (approximately $3.65 billion).
IDM, along with the consortium, plans to revitalize and re-industrialize the Lubmin site,
committing to create a minimum of 1,500 new jobs at the site and in the Greifswald and
Mecklenberg Vorpommern regions. IDM has already identified and has negotiated with
numerous multinational, high-technology, biotechnology and basic manufacturing companies
wanting to establish a presence at the site, and has obtained commitments in that regard from
several such companies. The site offers unique benefits to industrial investors, including an
established infrastructure, central location, a highly skilled and expertly trained laborforce and
immediate access to partnerships with the Biotechnikum Greifswald, the Technologiezentrum
Greifswald, which are Government-sponsored Applied Industrial Research & Development
and Technology Transfer Institutes, and the Universities of Greifswald and Rostock. The State
of Mecklenburg Vorpommern has agreed to support the project through long-term assistance
for infrastructure improvements and other economic benefits.
In response to the proposal submitted by IDM and the consortium to the German
Government last summer, the Government agreed to proceed with the privatization and
re-industrialization project, consistent with the criteria established by the German Federal
Government. IDM, working closely with the German State of Mecklenburg-Vorpommern,
enjoys the complete cooperation from officials in the Ministry of Economics of
Mecklenburg-Vorpommern and has received its acceptance and full support for the project.
The first phase of negotiations with the Government has been completed and further contract
negotiations are ongoing. This revitalization/re-industrialization/privatization project is believed
to be the largest ever in Germany, and one of the largest in the world. The foregoing
discussion contains forward looking statements which are based on current expectations.
Actual results, including the timing and amount of revenues recognized, contracts awarded and
performed and net income, may differ materially due to risks and uncertainties, including:
delays in payment on contracts due to dealing with governmental and foreign entities;
fluctuations in operating costs associated with changes in project specifications and general
economic conditions; substantial fluctuations in revenues; economics, and other conditions
affecting the ability of IDM and prospective customers to finance projects; and other risks
generally affecting the timing and financing of projects. IDM Environmental Corp. is a world
leader in industrial plant relocation and re-erection projects. IDM is also a leading provider of
full-service, turnkey, environmental remediation and plant decommissioning services. In
addition, IDM brings proprietary technologies in bioremediation and gasification of solid
wastes. IDM services private industry, utilities, and government clients worldwide.
Additionally, IDM is involved in the purchase and sale of surplus plants and equipment.
CONTACT: BGS Associates Inc.
Leonard Bogner, 212/593-5323 or 212/689-1214
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