<b>Casella Completes Transactions</B>

Casella Waste Systems, Inc. has closed on a transaction to acquire the remaining ownership interest in Maine Energy Recovery Company, its waste-to- energy operation in southern Maine, and sell its partial interest in the Penobscot Energy Recovery Co.

``These transactions are part of senior management's ongoing effort to strengthen its core franchise of traditional solid waste businesses,'' John W. Casella, president and CEO of Casella, said.

The company sold its ownership interest in PERC to Energy National, Inc., a subsidiary of NRG Energy, Inc. of Minneapolis, Minn. As part of the transaction, Casella Waste Systems purchased NRG's 16.25 percent interest in the Maine Energy Recovery Company.

The PERC and Maine Energy transaction allows the company to improve its balance sheet through the reduction of approximately $53 million in debt, as well as $14.4 million of minority interest.

``Clearly, one of the most significant disposal facilities in the state of Maine is Maine Energy Recovery Company,'' Casella said. ``We will now own the facility, which is important to the region's long-term disposal needs.''

In addition, the company has sold its 64 percent interest in the PERC incinerator in Orrington, Maine.

``Our involvement in this facility was solely as a partner, and we were without any day-to-day operational authority in the asset,'' Casella said. ``Additionally, the plant's capacity is tied up in long-term municipal disposal contracts, and two-thirds of the facility's cash flow was distributed to other parties. As a result, we were left with little flexibility to directly implement and benefit from operational improvements.

``As part of the transaction, we were able to secure long-term ash residue and front-end process residue disposal contracts with PERC at our Hampden, Maine landfill, which received approval for a three-million ton expansion in December 2000,'' Casella said. Additionally, the company was able to secure a favorable long-term disposal rate at PERC as part of the transaction.