February 11, 2006

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Envirocare Goes Big League With New Acquisitions
By Mark Watson   
Tooele Transcript-Bulletin, UT
February 7, 2006

A company which bolsters Tooele County government coffers and provides 500 jobs at its low-level radioactive disposal site in the west desert is on the verge of becoming America's leader in the nuclear waste management industry.

With an announcement today that it will acquire the Maryland-based company Duratek, Inc. coming on the heels of Friday's announcement that it has joined forces with BNG America and Scientech, Envirocare of Utah will become EnergySolutions with 2,000 employees in 40 states and internationally. Headquarters will be in Salt Lake City.

The recent moves will more than quadruple the size of the company and open the way for it to explore recent developments of reprocessing nuclear fuel rods.

"We are creating a U.S.-owned nuclear services company working in all aspects of the nuclear fuel cycle, which will bring improved operational efficiencies to our customers and better serve the needs of the government and industry in the nuclear waste management process," said Steve Creamer, president and chief executive officer of EnergySolutions.

Senior Vice President Tim Barney told the Tooele Transcript Bulletin Friday that the acquisitions are a great step forward for the company.

"We're really excited about this. It is nothing but a positive. It will make us stronger as a company and more financially viable," Barney said.

EnergySolutions paid $396 million in the Duratek acquistion.

The company is owned by a private equity group led by Lindsay, Goldberg & Bessemer, Peterson Partners and Creamer Investments, a press release says. This same group purchased the Envirocare facility on Jan. 31 of 2005.

Most of the company's activities will be outside the state of Utah, and there will be no changes at the waste storage site in Tooele County's west desert.

"No higher levels of radioactive waste will be handled or managed in the state of Utah," the release states.

"Our leaders and managers are all from Utah, so we are going to stay right here," Barney said.

BNG (British Nuclear Group) America is owned by the British government. Creamer spent several days in England last week prior to the announcement. News about the acquisitions was reported first in Britain Thursday evening. Since 1990, BNG America has supported the U.S. Department of Energy, nuclear utilities and commercial clients through its numerous U.S. offices.

Scientech D&D LLC is a consulting and engineering firm offering a broad spectrum of services designed to assist clients in the management of both hazardous and radioactive materials.

"Duratek has been a leader in providing services and technologies for nuclear materials management and radiocative waste disposition for the past 20 years," said Dr. Robert Prince, chief executive officer of Duratek.

EnergySolutions will integrate technologies and services focused on decommissioning and decontamination, spent fuel handling, transportation, high level waste management and disposal of nuclear waste.

The combined companies have provided specialized nuclear services in the United States market for over 20 years including high consequence nuclear operations, such as high-level waste management, spent-fuel handling and transportation; complex D&D projects of nuclear reactors and highly radioactive nuclear facilities; high-end technical challenges such as fuel sludge treatment and high-level waste treatment; and major decommissioning of both government and commercial nuclear facilities.

Recently, the Department of Energy has identified its site at Savannah River in South Carolina as a test site for the reprocessing or recycling of spent nuclear fuel.

"The government's renewed focus on recycling and the DOE strategy of using new technologies for spent fuel will make the need for high-level waste storage facilities like the proposed PFS site in Utah unnecessary. EnergySolutions looks forward to working with the government and industry to help provide the technology and expertise to help make recycling of spent fuel a reality in the United States," Creamer said.

Nuclear byproduct waste is generated in various ways from highly sophisticated government activities, including the DOE and the Department of Defense operations, along with everyday activities including medical treatments, prescription drug development, certain types of smoke detectors, and self-illuminating exit signs.

"As the country looks to alternative energy assets such as ethanol, solar, wind, and nuclear energy to both reduce our dependence on foreign resources and protect the environment, EnergySolutions is proud to be a part of this industry which is providing long-term energy solutions to the nation," said Creamer.

e-mail:mwatson@tooeletranscript.com