News | October 13, 2008

ADA-ES To Host Groundbreaking Ceremony For North America's Largest Activated Carbon Production Facility On October 21st

LITTLETON, Colo.--(BUSINESS WIRE)--ADA-ES, Inc. (NASDAQ:ADES) today announced that on October 21st at 11:00 AM CT, a formal groundbreaking ceremony will take place at Red River Environmental Products, LLC (RREP), in Red River Parish, LA, the construction site of what it expects will be North America's largest activated carbon (AC) production facility. Attending the event will be members of ADA-ES' senior management team and its Chairman of the Board, as well as management from Energy Capital Partners, LLC (ECP). In addition, we have invited local and state officials, members of the press, and key customers who have already contracted for $160 million worth of AC from this facility.

Earlier in the month, ADA-ES announced the formation of Crowfoot Development, LLC (Crowfoot), a joint venture with ECP and parent company of RREP, focused on the production of AC for the mercury emissions control market for coal-fired power plants. RREP is building the AC production facility to address the pressing need for clean coal technologies. Coal currently powers over 50% of the electricity generated in the country. Due to its abundance and relatively low, stable price, coal is expected to remain a key energy source in the U.S. However, the more than 1,100 coal-fueled power plant boilers in the U.S. emit about 48 tons of mercury per year, or about 37% of all human-caused mercury emissions. ADA-ES' AC has been proven to be capable of reducing mercury emissions by up to 90%. If Federal mercury control legislation is enacted or regulations are adopted, AC would represent a potential sustainable market of up to $1 billion per year.

The first production line of this facility will be capable of producing 125 to 175 million pounds of AC per year and is expected to come on-line in 2010. In addition, the air permit for the facility allows for a second production line, which, if constructed, would be capable of producing up to an additional 175 million pounds of AC per year. Crowfoot has plans to develop additional facilities in the future, including the possible construction of this second production line.

The Red River Police Jury has been instrumental in supporting the location of the facility. Police Jury President Jesse Davis said, "The positive economic impact of this new facility as well as its environmentally favorable production make it a welcome addition to Red River Parish. With market conditions slow and banks failing, it's a good thing for all new business, especially of this magnitude, to locate in our rural parish. It will be a boost and a big shot in the arm. All Red River Parish can say is, you are welcome in our community and we will work with you to make you want to stay."

Dr. Michael Durham, President and CEO of ADA-ES, commented, "We are very excited to formally kick-off the construction of Crowfoot's AC production facility. Between now and 2010, we plan to create U.S. construction jobs to build the $350 million project, followed by 50 full-time positions plus additional employees in mining and transportation. We've enjoyed an excellent relationship with the Red River Parish and Louisiana state officials who had the foresight to move this project forward for the benefit of its constituents in that it will help stimulate job creation and provide an overall economic boost to this part of Louisiana."

About ADA-ES
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, activated carbon, mercury measurement instrumentation, and related services. To meet the needs of the power industry for mercury control, the Company is developing state-of-the-art facilities to produce activated carbon (AC) with the first plant projected to come on-line in 2010. Additionally, the Company is developing technologies for power plants to address issues related to the emissions of carbon dioxide.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements included in this release include statements regarding expected costs, size and capacity of, and timing of commencement of operations at, the planned AC facility, value of sales contracts for AC to be supplied from the facility; expectations regarding coal continuing to be a key energy source and size of the AC market, and number of jobs expected to be created in connection with the building and operation of the facility. These statements are based on current expectations, estimates, projections, beliefs and assumptions of our management. Such statements involve significant risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to, changes in the costs and timing of construction of the planned AC facility; failure to satisfy funding or other conditions in the equity financing agreements providing financing for the facility; inability to sign or close acceptable definitive agreements for debt financing, coal supply or off-take agreements with respect to the facility in a timely manner; availability of raw materials and treatment and storage facilities; changes in laws or regulations, prices, economic conditions and market demand; impact of competition and litigation; changes in the political landscape; availability and cost of alternative energy sources; operational difficulties; availability of skilled personnel and other factors discussed in greater detail in our filings with the Securities and Exchange Commission (SEC). You are cautioned not to place undue reliance on our forward-looking statements and to consult filings we make with the SEC for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.

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