Primary Energy Recycling Corporation Provides Update on Strategic Review Process

OAK BROOK, IL, Sept. 25 /PRNewswire-FirstCall/ - Several months ago, the Board of Directors of Primary Energy Recycling Corporation (TSX: PRI-UN.TO) (the "Company") initiated a review of strategic options available to the Company to enhance unitholder value. As part of that review, the Board of Directors considered the Company's current arrangements with EPCOR USA Ventures LLC ("EPCOR"), including, in particular, the EPCOR Management Agreement. Based on this review, the Board has decided to initiate a sale process with the full co-operation of EPCOR, subject to certain terms and conditions and as previously announced in the joint press release issued by the Company and EPCOR. In order to facilitate the sales process and attract a broad range of interested parties, the Board and EPCOR have reached an agreement as to the terms on which the Company can unilaterally terminate the Management and Allocation Agreements.

As there can be no assurance that the sale process will result in a transaction, the Board has also determined that it will internalize management of the Company if a sale is not consummated.

To facilitate both of these initiatives, the Company has retained Mr. John Prunkl, former President of EPCOR, under a consulting agreement. Under the terms of the consulting agreement, Mr. Prunkl has agreed to assist the Company in connection with the sale process and provide advice on the development of the Company's internal management capability. Concurrent with entering into the consulting agreement, Mr. Prunkl resigned as a director from the boards of each of the Company and its subsidiary, Primary Energy Recycling Holdings LLC.

The Board is in the process of selecting a financial advisor to conduct the sale process.

Forward-Looking Statements

When used in this news release, the words "anticipate", "expect", "project", "believe", "estimate", "forecast" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions pertaining, but not limited, to operating performance, regulatory parameters, weather and economic conditions and the factors discussed in the Company's public filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by applicable law.

About Primary Energy Recycling Corporation

The Company owns a majority interest in Primary Energy Recycling Holdings LLC ("PERH"). PERH, headquartered in Oak Brook, Illinois, indirectly owns and operates four recycled energy projects and a 50 per cent interest in a pulverized coal facility (collectively, the "Projects"). The Projects have a combined electrical generating capacity of 283 megawatts and a combined steam generating capacity of 1.8 MMlbs/hour. PERH creates value for its customers by capturing and recycling waste energy from industrial and electric generation processes and converting it into reliable and economical electricity and thermal energy for its customers' use. For more information, please see www.primaryenergyrecycling.com.

SOURCE Primary Energy Recycling Corporation