ADA-ES Awarded Long-Term Contract to Supply Major Utility with Activated Carbon to Reduce Mercury Emissions

LITTLETON, Colo.--(BUSINESS WIRE)--ADA-ES, Inc. (NASDAQ:ADES) announced today it has been awarded a contract by a major utility to supply treated activated carbon (AC) to enable the utility to reduce mercury emissions to meet state regulations for coal-fired generating plants. The five year contract requires ADA to begin delivering AC upon written notice from the utility, expected to start in the third quarter of 2009 and is expected to result in total revenues of approximately $35 million over the term of the contract. The contract also contains a one time option for the utility to increase AC quantities by up to 50% from current commitments as required for other plants within its fleet.

Dr. Michael Durham, President and CEO of ADA-ES, commented, “This is a significant contract for the Company and represents our first successful commitment for long-term supply of actived carbon. The contract terms reflect the type of long-term take-or-pay commitment we believe is necessary to support debt financing for the new AC production facility.”

To suppy AC for the utility mercury control maket, ADA has previously announced its plans for building a new large-scale AC production facility, with the first of six production lines expected to be operational in early 2010. As reflective of this contract, the early demand for AC requires product deliveries in 2009. Since this precedes the startup of its first production line, ADA has developed an interim alternative AC supply program to process and sell AC into this market. In March 2008, ADA acquired the assets of an AC processing facility and entered into a letter of intent for a supply agreement to purchase AC beginning in 2008, with quantities increasing to over 20 million pounds during 2009. ADA recently achieved 90% mercury capture at a full-scale power plant with its treated AC produced from this facility. The Company is exploring a number of alternatives to increase this potential supply to 50 million pounds per year.

About ADA-ES

Headquartered in Littleton, CO, ADA-ES is a leader in clean coal technology and the associated specialty chemicals. The Company develops and implements proprietary environmental technology and specialty chemicals that enable coal-fueled power plants to enhance existing air pollution control equipment, maximize capacity and improve operating efficiencies. Through its largest and fastest-growing segment, Mercury Emission Control, ADA-ES supplies activated carbon injection systems, mercury measurement instrumentation, and related services. Additionally, the Company is implementing plans to produce and supply activated carbon for reducing mercury emissions from coal-fired boilers.

Our statements regarding expected contract revenues and when the first six production lines at our planned activated carbon manufacturing facility will be operational are forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. These statements are based on current expectations, estimates, forecasts, projections, beliefs and assumptions of our management and involve significant risks and uncertainties. Actual events or results could differ materially as a result of various factors, including but not limited to availability of adequate AC and other raw materials when needed, financing for the facility, our ability to secure a construction contract for all phases of development of the facility on reasonable terms, changes in the project development schedule and costs, our ability to secure necessary permits and other regulatory approvals, changes in laws or regulations and other factors discussed in our filings with the Securities and Exchange Commission (SEC). You are cautioned not to place undue reliance on the forward-looking statements made in this release, and to consult filings we make with the SEC for additional discussion concerning risks and uncertainties that may apply to our business and the ownership of our securities. The forward-looking statements contained in this press release are presented as of the date hereof, and we disclaim any duty to update such statements unless required by law to do so.