Competition:
Thursday March 5, 1:29 pm Eastern Time
Company Press Release
IDM In Asian Industrial Waste Treatment Venture
SOUTH RIVER, N.J.--(BUSINESS WIRE)--March 5, 1998--IDM Environmental Corp.
(NASDAQ: IDMC - news, IDMCW - news) -- through its newly formed affiliate IDM Asia -- and
Five-Nines Technology Company, a leading Taiwanese waste management corporation, have signed
an agreement to jointly develop a 100-tons-per-day industrial waste processing and energy
production facility in Taipei, Taiwan.
The Team anticipates that the project, which is expected to cost approximately $22 million, will be
funded through conventional (non-recourse) project financing. Several leading Taiwanese financial
institutions have expressed strong interest in financing the project. The venture would be among the
first and one of the largest privately owned industrial and energy production facilities in Taiwan. IDM
Asia will have no less than a 40% interest in the project.
The revenue from the project over a 20-year period is estimated at more than $170 million--and will
in all probability be significantly higher as additional waste streams (with higher processing fees) are
secured by Five-Nines. The project's annual revenues during the first three years of operation are
expected to exceed $6 million. IDM Asia's share of the potential pretax profit is expected to be
approximately $1.5-2.0 million per year for the first three years of operation with substantial
increases expected as the project matures.
''We are excited about our involvement in this project in Taiwan and to be allied with Five-Nines
Technology, a leading company in solid and industrial waste treatment and development,'' said IDM
Board Chairman Frank Falco. ''IDM Asia is pursuing numerous opportunities in Taiwan and
throughout Asia, capitalizing on IDM's core competencies and proprietary technologies,'' Falco
added.
The IDM-Five-Nines team is currently preparing a detailed plant design on the project. As currently
envisioned, the project will utilize a unique, proprietary and commercially proven technology for the
treatment of a wide range of waste streams. The Team has also initiated all the necessary steps to
secure environmental and regulatory permits. The facility is expected to be operational within the
next 12 months.
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 awarding and commencing contracts; delays in payment on contracts due to
dealings with governmental and foreign entities; changes in accepted remediation technologies and
techniques; 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 prospective customers to finance projects; and, other risks generally affecting
the time and financing of projects.
IDM Environmental Corp. is a specialty contractor and leading provider of services and technology
in the areas of environmental remediation, plant decommissioning and industrial plant relocation. The
company is actively developing projects in the areas of power production and distribution. In
addition, IDM brings proprietary technologies in bioremediation and gasification of solid wastes, and
is involved in the purchase and sale of surplus plants and equipment.
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