Waste Mgmt. contract expanded to $9,000,000 Annually
USA Biomass
Corporation
PRESS RELEASE
52300 Enterprise Way
Coachella, CA
92236 For
Release: October 9, 1998
USA BiomassContact: Barry Goverman, Vice President
(781) 341-1348
bgoverman@usabiomass.com
Investor Relations: Philippe Niemetz
WPH Consultants Ltd.
(800) 477-7570
wphconsultants@msn.com
USA Biomass Exclusive Transportation Contract With Waste Management Is
Expanded; Contract Revenues To Generate $9,000,000 Annually
Coachella, California – October --9, 1998 – USA Biomass Corporation
("USA Biomass" or "the Company”; USBC: Nasdaq) is pleased to announce
that its exclusive transportation contract with Waste Management, Inc.
(NYSE: WMI) has been expanded significantly, and is now expected to
generate $9,000,000 in annualized revenues. The Company's initial
contract with Waste Management (formerly USA Waste, Inc.), signed in
June 1998, was estimated to yield annualized revenues of approximately
$6,700,000. On October 1, 1998 the Company began transporting waste
from southern California transfer stations, and will phase in its new
fleet of 40 trucks over the next 30 days.
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.
USA Biomass is currently the only Nasdaq-traded company in California
with a fully integrated biomass operation (tree maintenance, green waste
recycling, transport, and byproduct sales). USA also operates a fully
integrated agricultural division, and a transitional land
planning/development division.
USA Biomass' Internet site can be found 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; various conditions specific
to the agribusiness, real estate development, municipal tree trimming
and green waste processing industries; and factors discussed in the
Company's annual report on Form 10-KSB for the fiscal year ended August
31, 1997 and quarterly reports on Form 10-QSB for May 31, 1998.
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