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Clean Harbors Reports Financial Results for the Second Quarter of 2007

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    Demand for Services and Teris Acquisition Drive 20% Growth as
                   Company Achieves Record Revenues

NORWELL, Mass.--(BUSINESS WIRE)--Aug. 8, 2007--Clean Harbors, Inc. ("Clean Harbors") (NASDAQ: CLHB), the leading provider of environmental and hazardous waste management services throughout North America, today announced financial results for the second quarter ended June 30, 2007.

For the second quarter of 2007, Clean Harbors reported a 20 percent increase in revenue to a record $238.7 million from $199.6 million reported in the second quarter of 2006. Income from operations rose 32 percent to $23.6 million from $17.8 million in the second quarter of 2006. Net income attributable to common stockholders was $11.1 million, or $0.54 per diluted share, for the second quarter of 2007 compared with $11.3 million, or $0.55 per diluted share, in the same period of 2006. The Company's provision for income taxes was $8.7 million for the second quarter of 2007 versus $3.5 million in the corresponding quarter of last year. The effective tax rate in the second quarter of 2007 was 44 percent compared to 23 percent in the same period of last year. The provision for income taxes includes $1.4 million, or $0.07 per diluted share, related to the Company's first-quarter 2007 adoption of Financial Accounting Interpretation No. 48 ("FIN 48") "Accounting for Uncertainty in Income Taxes." EBITDA (see description below) increased 24 percent to $35.2 million in the second quarter of 2007, from $28.3 million for the quarter ended June 30, 2006.

Comments on the Second Quarter

"It was another record setting quarter for Clean Harbors," said Alan S. McKim, Chairman and Chief Executive Officer. "Strength across our U.S. incinerators and landfills, including another full quarter of contribution from Teris, coupled with steady growth across all service lines fueled a 20 percent increase in our top line. Landfill volumes rebounded from seasonal lows in the first quarter of the year. Our U.S. incinerators ran at high utilization levels with a favorable product mix. Our Site Services segment also continued its recent growth pattern with another solid performance, even with very little emergency response work in the second quarter."

"Higher revenues and our ongoing operational cost initiatives enabled us to meet the high end of our EBITDA guidance range, despite the impact of unusually high healthcare costs and the significant net foreign exchange loss associated with the strengthening of the Canadian dollar," McKim said.

"Cash generation was a key financial highlight for Clean Harbors in the second quarter," continued McKim. "Our cash and marketable securities balance increased by $20 million during the quarter to $89 million. This increase was mainly derived from enhanced productivity in operations and working capital, and careful management of our environmental and capital spending."

"In July, we announced the acquisition of certain assets owned by Romic Environmental Technologies Corporation, including business generated at seven service centers," said McKim. "This acquisition, which we recently closed, will expand our presence in certain underpenetrated West Coast markets. We believe we can derive significant leverage from these locations through our existing infrastructure of landfills, incinerators and wastewater treatment centers."

Non-GAAP Second-Quarter Results

Clean Harbors reports EBITDA results, which are non-GAAP financial measures, as a complement to results provided in accordance with accounting principles generally accepted in the United States (GAAP) and believes that such information provides additional useful information to investors since the Company's loan covenants are based upon levels of EBITDA achieved. The Company defines EBITDA in accordance with its existing credit agreement, as described in the following reconciliation showing the differences between reported net income and EBITDA for the second quarter and first six months of 2007 and 2006 (in thousands):

                                       For the three    For the six
                                        months ended:   months ended:
                                        June    June    June    June
                                         30,     30,     30,     30,
                                         2007    2006    2007    2006

Net income                             $11,188 $11,372 $14,689 $14,177
Accretion of environmental liabilities   2,554   2,543   5,028   5,053
Depreciation and amortization            9,049   7,954  17,987  15,233
Loss on early extinguishment of debt         -       -       -   8,290
Interest expense, net                    3,695   2,876   6,879   6,049
Provision for income taxes               8,739   3,469  12,713   4,164
Other (income) expense                       5     132      (1)    162
                                       ------- -----------------------
EBITDA                                 $35,230 $28,346 $57,295 $53,128
                                       ======= =======================

Business Outlook and Financial Guidance

"Our outlook is positive as we head into the second half of 2007," said McKim. "Our pipeline of pending business remains strong as we continue to target and win large-scale facilities projects that supply significant volumes to our landfills and incinerators. With the Teris integration complete, we are shifting our focus to implementing further enhancements at these acquired facilities to realize additional benefits. We have begun to integrate the assets we acquired from Romic and we expect this to be largely complete during the third quarter of 2007."

Based on its results for the first six months of 2007 and current market conditions, the Company expects revenue in the range of $235 million to $240 million for the third quarter of 2007. The Company expects to generate EBITDA for the third quarter of 2007 in the range of $35 million to $37 million. Clean Harbors also reiterated its guidance for the full year 2007. The Company expects to increase annual revenues by 8 percent to 9 percent, and achieve annual EBITDA growth in the range of 12 percent to 13 percent.

Conference Call Information

Clean Harbors will conduct a conference call for investors to discuss the information contained in this news release today at 9:00 a.m. (ET). On the call, Chairman, President and Chief Executive Officer Alan S. McKim and Executive Vice President and Chief Financial Officer James M. Rutledge will discuss Clean Harbors' financial results, business outlook and growth strategy.

Investors who wish to listen to the second-quarter webcast should visit the Investor Relations section of the Company's website at The live conference call also can be accessed by dialing (800) 262-1292 or (719) 457-2680 prior to the start of the call. If you are unable to listen to the live call, the webcast will be archived on the Company's website.

About Clean Harbors, Inc.

Clean Harbors, Inc. is North America's leading provider of environmental and hazardous waste management services. With an unmatched infrastructure of 49 waste management facilities, including nine landfills, six incineration locations and six wastewater treatment centers, the Company provides essential services to over 45,000 customers, including more than 325 Fortune 500 companies, thousands of smaller private entities and numerous federal, state and local governmental agencies. Headquartered in Norwell, Massachusetts, Clean Harbors has more than 100 locations strategically positioned throughout North America in 36 U.S. states, six Canadian provinces, Mexico and Puerto Rico. For more information, visit

Safe Harbor Statement

Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. These forward-looking statements are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "estimates," "projects," or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its various filings with the Securities and Exchange Commission. Furthermore, all financial information in this press release is based on preliminary data and is subject to the final closing of the Company's books and records.

A variety of factors beyond the control of the Company may affect the Company's performance, including, but not limited to:

    --  The Company's ability to manage the significant environmental
        liabilities that it assumed in connection with the CSD and
        Teris acquisitions;

    --  The availability and costs of liability insurance and
        financial assurance required by governmental entities relating
        to our facilities;

    --  The effects of general economic conditions in the United
        States, Canada and other territories and countries where the
        Company does business;

    --  The effect of economic forces and competition in specific
        marketplaces where the Company competes;

    --  The possible impact of new regulations or laws pertaining to
        all activities of the Company's operations;

    --  The outcome of litigation or threatened litigation or
        regulatory actions;

    --  The effect of commodity pricing on overall revenues and

    --  Possible fluctuations in quarterly or annual results or
        adverse impacts on the Company's results caused by the
        adoption of new accounting standards or interpretations or
        regulatory rules and regulations;

    --  The effect of weather conditions or other aspects of the
        forces of nature on field or facility operations;

    --  The effects of industry trends in the environmental services
        and waste handling marketplace; and

    --  The effects of conditions in the financial services industry
        on the availability of capital and financing.

Any of the above factors and numerous others not listed nor foreseen may adversely impact the Company's financial performance. Additional information on the potential factors that could affect the Company's actual results of operations is included in its filings with the Securities and Exchange Commission, which may be viewed on the Investor portal of the Company's Web Page at

               (in thousands except per share amounts)

                                 For the three     For the six months
                                  months ended:          ended:
                               June 30,  June 30,  June 30,  June 30,
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------

 Revenues                      $238,708  $199,562  $443,732  $384,057
 Cost of revenues               165,282   135,964   316,886   267,322
 Selling, general and
  administrative expenses        38,196    35,252    69,551    63,607
 Accretion of environmental
  liabilities                     2,554     2,543     5,028     5,053
 Depreciation and amortization    9,049     7,954    17,987    15,233
                               --------- --------- --------- ---------
 Income from operations          23,627    17,849    34,280    32,842
 Other income (expense)              (5)     (132)        1      (162)
 Loss on early extinguishment
  of debt                             -         -         -    (8,290)
 Interest (expense), net         (3,695)   (2,876)   (6,879)   (6,049)
                               --------- --------- --------- ---------
 Income before provision for
  income taxes                   19,927    14,841    27,402    18,341
 Provision for income taxes(a)    8,739     3,469    12,713     4,164
                               --------- --------- --------- ---------
 Net income                      11,188    11,372    14,689    14,177
 Dividends on Series B
  Preferred Stock                    69        69       138       138
                               --------- --------- --------- ---------
 Net income attributable to
  common stockholders          $ 11,119  $ 11,303  $ 14,551  $ 14,039
                               ========= ========= ========= =========

 Earnings per share:
        Basic income
         attributable to common
         stockholders          $   0.56  $   0.58  $   0.74  $   0.72
                               ========= ========= ========= =========
        Diluted income
         attributable to common
         stockholders          $   0.54  $   0.55  $   0.71  $   0.69
                               ========= ========= ========= =========

 Weighted average common shares
  outstanding                    19,817    19,495    19,773    19,441
                               ========= ========= ========= =========
 Weighted average common shares
  outstanding plus potentially
dilutive common shares           20,661    20,549    20,683    20,518
                               ========= ========= ========= =========
(a) Provision for income taxes includes $1,404 and $2,655 for the
 quarter and year-to-date ending 2007 and $303 and $547 for the
 quarter and year-to-date ending 2006, respectively, for expenses
 associated with uncertain tax positions.

                            (in thousands)

                                         June 30,       December 31,
                                           2007             2006
                                    ------------------ ---------------
Current assets:
      Cash and cash equivalents               $ 77,356        $ 73,550
      Marketable securities                     11,275          10,240
      Accounts receivable, net                 179,103         169,581
      Unbilled accounts receivable              20,010          16,078
      Deferred costs                             7,622           7,140
      Prepaid expenses and other
       current assets                            9,614           9,301
      Supplies inventories                      21,580          20,101
      Deferred tax assets                        9,299           9,238
      Income tax receivable                        164             150
      Properties held for sale                     890           7,440
                                    ------------------ ---------------
         Total current assets                  336,913         322,819
                                    ------------------ ---------------

Property, plant and equipment, net             251,916         244,126
                                    ------------------ ---------------

Other assets:
      Deferred financing costs                   6,754           7,206
      Goodwill                                  21,590          19,032
      Permits and other intangibles,
       net                                      67,566          65,743
      Investment in joint venture                    -           2,208
      Deferred tax assets                       11,617           6,388
      Other                                      4,591           3,286
                                    ------------------ ---------------
                                               112,118         103,863
                                    ================== ===============
         Total assets                         $700,947        $670,808
                                    ================== ===============
                            (in thousands)

                                                   June 30,      31,
                                                     2007       2006
                                                  ----------- --------
 Current liabilities:
      Uncashed checks                                $ 14,364 $ 11,083
      Current portion of long-term debt                19,184        -
      Current portion of capital lease obligations      1,048    1,391
      Accounts payable                                 76,742   81,432
      Accrued disposal costs                            2,916    3,058
      Deferred revenue                                 30,627   29,409
      Other accrued expenses                           49,143   53,941
      Current portion of closure, post-closure and
       remedial liabilities                            15,448   13,707
      Income taxes payable                              5,431    4,333
                                                  ----------- --------
              Total current liabilities               214,903  198,354
                                                  ----------- --------
 Other liabilities:
      Closure and post-closure liabilities, less
       current portion                                 23,302   23,520
      Remedial liabilities, less current portion      137,045  136,173
      Long-term obligations, less current
       maturities                                     101,462  120,522
      Capital lease obligations, less current
       portion                                          2,619    2,648
      Other long-term liabilities                      61,694   15,609
      Accrued pension cost                                747      796
                                                  ----------- --------
              Total other liabilities                 326,869  299,268
                                                  ----------- --------
 Total stockholders' equity, net                      159,175  173,186
                                                  ----------- --------
              Total liabilities and stockholders'
               equity                                $700,947 $670,808
                                                  =========== ========

    CONTACT: Clean Harbors, Inc.
             James M. Rutledge, 781-792-5100
             Executive Vice President and Chief Financial Officer
             Bill Geary, 781-792-5130
             Executive Vice President and General Counsel
             For Clean Harbors, Inc.
             Sharon Merrill Associates, Inc.
             Jim Buckley, 617-542-5300
             Executive Vice President

    SOURCE: Clean Harbors, Inc.

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