Perma-Fix Reports Fourth Quarter Net Income of $1.9 Million

Date: March 6, 2007

Source: Perma-Fix Environmental Services, Inc.

Perma-Fix Reports Record Fourth Quarter Net Income of $1.9 Million; 7th Consecutive Quarter of Profitability

Perma-Fix Completes Construction of New Treatment Bay at M&EC Facility to Treat Higher Level and Special Classified Mixed Nuclear Waste

Proposed Acquisition of Nuvotec Would Provide Greater Access to DOE's Hanford Site

Perma-Fix Environmental Services, Inc. (Nasdaq: PESI; BSE: PESI; Germany: PES.BE) today announced financial results for the fourth quarter and twelve months ended December 31, 2006.

Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, "We are pleased to report record net income for both the fourth quarter of 2006 and full year ending December 31, 2006. Our Nuclear Segment generated solid results during the fourth quarter of 2006 as the government entered its new fiscal year and Department of Energy (DOE) spending returned to normal levels. We are also very excited about the growth prospects for our Nuclear Segment heading into 2007. First, we completed construction of the new treatment bay at our M&EC facility, which allows us to treat higher level and special classified nuclear waste. We are the first commercial operator with the licenses and facilities to treat these wastes. We have already begun treating these higher level and special classified wastes during the first quarter of 2007, which positions us to capture significant share of this untapped market."

"Second, we have entered into a letter of intent to acquire Nuvotec USA, Inc. and its wholly owned subsidiary, Pacific EcoSolutions, Inc. (PEcoS), a nuclear waste management company, based in Richland, Washington. Completion of this acquisition is subject to numerous conditions, including finalization and execution of definitive agreements, completion of due diligence and lender approvals. This acquisition, if completed, would provide us with a number of strategic benefits. Foremost, this acquisition will secure PEcoS' radioactive and hazardous waste permits and licenses, which further solidifies our position within the mixed-waste industry. Additionally, the PEcoS facility is located adjacent to the Hanford site, which represents one of the largest environmental clean-up projects in the nation, and is expected to be one of the most expensive of the DOE's nuclear weapons facilities to remediate. In addition, the acquisition expands our west coast presence and increases our treatment capacity for radioactive waste. Overall, this acquisition, if completed, represents a significant growth opportunity treating both low-level mixed waste as well as higher level radioactive wastes. Looking ahead, we remain focused on exploiting the growth opportunities in our Nuclear Segment by expanding our capabilities and leveraging our current infrastructure to increase both revenues and margins."

Financial Results

Revenues for the fourth quarter of 2006 were $22.0 million versus $21.5 million for the same period last year. Revenue for the Nuclear Segment was $13.1 million versus $11.3 million for the fourth quarter of 2005. Revenue for the Nuclear Segment benefited from surcharge revenues of $1.1 million relating to a settlement with a DOE contractor for work that had been previously completed. Revenue for the Industrial segment was $8.3 million versus $9.5 million in the same period last year, reflecting the Company's efforts to replace lower margin contracts.

Income from operations for the fourth quarter was $2.6 million, versus $708,000 for the same period last year. Net income applicable to common stock for the fourth quarter of 2006 was $1.9 million, or $0.04 per share, versus $541,000 or $0.01 per share, for the same period last year.

Revenues for the year ended December 31, 2006, were $87.9 million versus $90.9 million for the same period last year. Revenue for the Nuclear Segment was $49.4 million versus $47.2 million for the twelve months ended December 31, 2005. Revenue for the Industrial segment was $35.1 million versus $40.8 million for the same period last year.

Income from operations for the year ended December 31, 2006, was $6.2 million versus $5.3 million for the same period last year. Net income applicable to common stock for the year ended December 31, 2006, was $4.7 million, or $0.10 per share, versus net income applicable to common stock of $3.6 million or $0.08 per share, for the same period last year. Net income applicable to common stock for the year ended December 31, 2006, included a gain of $349,000 from discontinued operations compared to a gain of $670,000 for the year ended December 31, 2005.

The Company's EBITDA was $3.7 million during the quarter ended December 31, 2006, as compared to $2.2 million for the same period of 2005. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is not a measure of performance calculated in accordance with accounting principles generally accepted in the United States ("GAAP"), and should not be considered in isolation of, or as a substitute for, earnings as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. The Company believes the presentation of EBITDA is relevant and useful by enhancing the readers' ability to understand the Company's operating performance. The Company's management utilizes EBITDA as a means to measure performance. The Company's measurements of EBITDA may not be comparable to similar titled measures reported by other companies. The table below reconciles EBITDA, a non-GAAP measure, to net income for the three and twelve months ended December 31, 2006 and 2005.



                                 Quarter Ended          Twelve Months Ended
                                   Dec. 31,                   Dec. 31,
    (In thousands)             2006          2005         2006         2005

    Net Income, as reported   $1,877         $541       $4,711       $3,583

    Adjustments:
      Depreciation &
       Amortization            1,214        1,222        4,858        4,754
      Interest Income            (90)        (126)        (285)        (133)
      Interest Expense           272          418        1,346        1,594
      Interest Expense -
       Financing Fees             48           48          193          318
      Income Tax Expense         355          108          507          432

    EBITDA                    $3,676       $2,211      $11,330      $10,548


The tables below present certain financial information for the business segments, excluding allocation of corporate expenses:


                                       Quarter Ended December 31, 2006
    (In thousands)               Industrial         Nuclear   Engineering

    Net revenues                     $8,274         $13,135          $621
    Gross profit                      1,527           6,268           105
    Segment profit (loss)              (401)          4,201             6


                                       Quarter Ended December 31, 2005
    (In thousands)               Industrial         Nuclear   Engineering

    Net revenues                     $9,475         $11,283          $708
    Gross profit                      1,450           4,150           187
    Segment profit (loss)            (1,064)          2,414            48


                                     Twelve Months Ended Dec 31, 2006
    (In thousands)               Industrial         Nuclear   Engineering

    Net revenues                    $35,148         $49,423        $3,358
    Gross profit                      7,483          20,930           797
    Segment profit (loss)            (1,963)         12,652           252


                                        Twelve Months Ended Dec 31, 2005
    (In thousands)               Industrial         Nuclear   Engineering

    Net revenues                    $40,768         $47,245        $2,853
    Gross profit                      6,627          18,100           669
    Segment profit (loss)            (1,762)         10,077           182



About Perma-Fix Environmental Services

Perma-Fix Environmental Services, Inc. is a national environmental services company, providing unique mixed waste and industrial waste management services. The Company has increased its focus on the nuclear services segment, which provides radioactive and mixed waste treatment services to hospitals, research laboratories and institutions, numerous federal agencies including DOE and the U.S. Department of Defense and nuclear utilities. The industrial services segment provides hazardous and non-hazardous waste treatment services for a diverse group of customers including Fortune 500 companies, numerous federal, state and local agencies and thousands of smaller clients. The Company operates nine major waste treatment facilities across the country.

Please visit us on the World Wide Web at www.perma-fix.com.





    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)

    (Amounts in Thousands,
    Except for Per            Three Months Ended     Twelve Months Ended
    Share Amounts)               December 31,             December 31,
                              2006         2005       2006         2005

    Net revenues             $22,031    $21,465      $87,929      $90,866
    Cost of goods sold        14,131     15,680       58,719       65,470
    Gross profit               7,900      5,785       29,210       25,396

    Selling, general and
     administrative expenses   5,295      5,078       22,949       20,443
    Loss (gain) on disposal
     of property and equipment    31         (1)          28         (334)
    Income from operations     2,574        708        6,233        5,287

    Other income (expense):
    Interest income               90        126          285          133
    Interest expense            (272)      (418)      (1,346)      (1,594)
    Interest expense-
     financing fees              (48)       (48)        (193)        (318)
    Other                          4         (8)        (110)         (71)
    Income from continuing
     operations before taxes   2,348        360        4,869        3,437
    Income tax expense           355        108          507          432
    Income from continuing
     operations                1,993        252        4,362        3,005

    Income (loss) from
     discontinued operations    (116)       289          349          670
    Net income                 1,877        541        4,711        3,675

    Preferred Stock dividends      -          -            -           92
    Net income applicable
     to Common Stock          $1,877       $541       $4,711       $3,583

    Net income per
     common share - basic
    Continuing operations       $.04       $.01         $.09         $.07
     Discontinued operations       -          -          .01          .01
    Net income per
     common share               $.04       $.01         $.10         $.08

    Net income per common
     share - diluted
    Continuing operations       $.04       $.01         $.09         $.07
    Discontinued operations        -          -          .01          .01
    Net income per common share $.04       $.01         $.10         $.08

    Number of shares and
     potential common shares
     used in net income
     per common share:
       Basic                  52,036     44,754       48,157       42,605
       Diluted                52,763     47,512       48,768       44,804



    CONDENSED CONSOLIDATED BALANCE SHEETS

    (Amounts in Thousands,                            December     December
    Except for Share Amounts)                         31, 2006     31, 2005
                                                    (unaudited)
    ASSETS
    Current assets
      Cash                                            $1,863            $94
      Restricted cash                                     65            511
      Accounts receivable, net of allowance
       for doubtful accounts of $520 and $512         15,256         16,609
      Unbilled receivables                            12,861         11,948
      Prepaid expenses and other                       5,508          3,656
      Current assets of discontinued operations,
       net of allowance for doubtful
       accounts of $0 and $90                             22             60
        Total current assets                          35,575         32,878

    Net property and equipment                        45,920         44,480
    Net Property and equipment of
     discontinued operations                             706            806
    Permits                                           13,395         13,188
    Goodwill                                           1,330          1,330
    Unbilled receivables - long term                   2,600              -
    Finite Risk Sinking Fund                           4,518          3,339
    Other assets                                       1,953          2,504
        Total assets                                $105,997        $98,525

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable                                $3,922         $6,053
      Accrued expenses and other                      15,733         17,603
      Current liabilities of discontinued operations     707            628
      Current portion of long-term debt                2,403          2,678
        Total current liabilities                     22,765         26,962

      Other long-term liabilities                     10,166          9,279

      Long-term liabilities of
       discontinued operations                         1,402          3,149
      Long-term debt, less current portion             5,926         10,697
        Total long-term liabilities                   17,494         23,125
        Total liabilities                             40,259         50,087

    Commitments and Contingencies                          -              -

    Preferred Stock of subsidiary, $1.00
     par value; 1,467,396 shares authorized,
     1,284,730 shares issued and outstanding,
     liquidation value $1.00 per share                 1,285          1,285

    Stockholders' equity:
    Common Stock, $.001 par value; 75,000,000
     shares authorized, 52,053,744 and 45,813,916
     shares issued, including 988,000 shares
     retired in 2006 and held as treasury stock
     as of December 31, 2005, respectively                52             46
       Additional paid-in capital                     92,980         82,180
       Stock Subscription Receivable                     (79)
       Accumulated deficit                           (28,500)       (33,211)
                                                      64,453         49,015
    Less Common Stock in treasury at cost;
     988,000 shares                                        -         (1,862)
        Total stockholders' equity                    64,453         47,153

        Total liabilities and stockholders' equity  $105,997        $98,525

For more information, contact:
Dr. Louis F. Centofanti
Chairman and CEO of Perma-Fix Environmental Services, Inc.
770-587-5155

David K. Waldman
US Investor Relations, of Crescendo Communications, LLC
212-671-1020 x101
or

Herbert Strauss
European Investor Relations
+43-316-296-316
herbert@eu-ir.com.

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