For Immediate Release: July 17, 2006

Advanced Disposal Services, Inc. Announces Recapitalization

Jacksonville, FL

Advanced Disposal Services, Inc. (Advanced Disposal) and AIG Global Investment Group (AIGGIG) announce their agreement to recapitalize the company in a transaction valued at approximately $470MM. ADStar Waste Holdings, Inc. (“ADStar”), a wholly owned subsidiary of AIGGIG managed by AIG Highstar Capital (Highstar) has agreed to restructure and replace the existing shareholders of Advanced Disposal and position the company for future growth and expansion. The recapitalization is subject to customary closing conditions and regulatory approvals which the parties expect to receive within 30 to 60 days.

Commenting on the recapitalization, Charlie Appleby, President of Advanced Disposal, stated, “This marks an exciting new chapter for the company. While the transaction will be essentially transparent to our existing customers and workforce, it provides us with significant resources to fuel our growth and expansion while ensuring the continuation of excellent customer service by the same management team — from our drivers, dispatchers, sales and service representatives to our general and district managers. This is an ideal strategic alliance between experienced management with a highly successful proven track record and a strong financial backer with relevant industry experience.” 

Christopher Lee, Managing Partner of Highstar stated, “We are extremely pleased to be participating in the recapitalization of Advanced Disposal as this represents an outstanding opportunity to back a first class management team with well positioned assets in high growth geographic markets. Our investment in Advanced Disposal represents Highstar’s third investment in waste management and related businesses in the eastern United States. As in all of our prior investments, we look forward to supporting the continued growth of the Advanced Disposal business consistent with the company’s standards of integrity, customer service, community support and respect for its employees and stakeholders.”