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Construction to Begin on New California Biosolids Recycling Plant

Construction to Begin on New California Biosolids Recycling Plant

Published 08-04-03

Submitted by Synagro Technologies Inc.

HOUSTON,TX - Synagro Technologies, Inc. (Nasdaq: SYGR), a full service provider of water and wastewater residuals management services, announced today that it has received a "Notice to Proceed" to begin construction of a state-of-the-art biosolids heat drying and pelletization facility for the Sacramento Regional County Sanitation District (District) which is expected to be completed sometime in mid 2004.

The facility, which will be built at the District's Wastewater Treatment Plant in Elk Grove, will process biosolids within a contained building to reduce odors. Further, the facility will treat air emissions from the plant using advanced state-of-the-art technology to help continue the "good neighbor" relationship between the District and surrounding residents.

"This facility is the first of its kind in the State of California and incorporates the most environmentally and technically advanced processing systems available," according to Ruben Robles, Biosolids Program Manager.

"Our environment and our community will benefit once this facility is completed and begins serving the residents of Sacramento County," stated Wendell Kido, District Manager. "The project design will enable this advanced treatment facility to be operated while having minimal impact on the neighborhood and allow us to deliver treatment services at a reasonable cost to the community," said Kido.

The state-of-the-art technology also provides another environmentally friendly benefit by recycling the city's wastewater residuals into an "exceptional quality" Class A organic fertilizer product that can be sold for use on commercial and residential lawns and gardens.

Approximately 20 dry tons of Class A biosolids will be produced daily at the Sacramento Recycling facility -- about 7,500 tons a year -- which will be marketed by Synagro and distributed for commercial and residential use under the "Granulite" brand name. Synagro currently markets over 150,000 tons of Class A (Exceptional Quality or EQ) pelletized biosolids annually.

"This will be a world-class heat drying facility and excellent example of how public-private partnerships can be formed to address municipal biosolids management needs, environmental challenges and local community concerns," stated Ross M. Patten, Synagro's Chairman and CEO.

The District entered into a public/private partnership last year with an industry team, led by Synagro Technologies, Inc., signing a twenty year contract to design, finance, build and operate a 7,500 dry ton/year biosolids, dewatering and heat drying facility capable of providing local residents with a long-term, environmentally friendly solution to their waste
management needs.

Synagro is teamed with Andritz-Ruthner, Inc., Black & Veatch, and The Whiting Turner Contracting Company for the design and construction of the facility. The plant will incorporate the Andritz Drum Drying System with its innovative processing features. Andritz-Ruthner is the industry leader in heat drying/pelletization technology, with over 55 facilities worldwide. Design and local planning expertise is being provided by Black & Veatch,
Inc. and Whiting Turner will construct the facility.

"We are looking forward to beginning this benchmark project in California," said Patten.

Synagro received all of the permits required for the project on schedule prompting issuance of the official "Notice to Proceed" from the Sacramento Regional County Sanitation District on July 18, 2003. The contract allows 548 days for construction, start-up and acceptance testing by the District, with a Scheduled Acceptance Date of January 16, 2005, but an early completion in 2004 is expected.

Synagro is the largest national company focused on water and wastewater residuals management services in the United States, serving over 1,000 municipal and industrial water and wastewater generators in 35 states and the District of Columbia. The Houston-based company offers a range of water and wastewater residuals management services focusing on the beneficial reuse of organic, nonhazardous residuals during the water and wastewater treatment process, including the treatment and conversion of sewage sludge into biosolids.

Synagro's residuals management services include collection and transportation, land application, thermal drying and pelletization, incineration, composting, alkaline stabilization, dewatering, cleanout services, wastewater treatment plant operations and maintenance, product marketing, record keeping and regulatory reporting services.

This press release contains certain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risks, uncertainties or other factors not under the Company's control, which may cause the actual results, performance or achievement of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to (1) the ability to find, timely close, and integrate acquisitions, (2) unseasonable weather, (3) changes in government regulations, and (4) the ability to access debt and equity financing when needed. Other factors are discussed in the Company's periodic filings with the Securities and Exchange Commission.

Synagro Technologies Inc.

Synagro Technologies Inc.

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