U S Liquids Inc. Announces Completion of Sale of Businesses HOUSTON, Feb. 6 /PRNewswire-FirstCall/ -- U S Liquids Inc. (OTC Pink Sheets: USLQ) a provider of waste management services, announced today that it has completed the previously announced sale of (i) substantially all of the assets of its USL Detroit, USL Florida and USL First Source businesses, and (ii) substantially all of the assets of its Waste Research business other than a waste processing facility in Macon, Georgia, to EQ - The Environmental Quality Company. Gross proceeds from the sale, which are subject to a post-closing working capital adjustment, were $12.235 million. $1.0 million of the proceeds will be paid to the United States of America in full and complete satisfaction of all amounts still owing by USL Detroit under the terms of its settlement of the investigation of its Detroit facility that was commenced by the EPA and the FBI in August 1999. The remaining proceeds will be used to pay transaction expenses and reduce debt outstanding under the Company's credit facility. EQ - The Environmental Quality Company is a Michigan-based environmental services organization that offers a comprehensive range of high quality services to industrial and municipal customers throughout North America. The organization has approximately 500 employees and generates approximately $150 million in annual revenue from 30 locations in the United States and Argentina. This document contains forward-looking statements that are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Key factors that could cause actual results to differ materially from expectations include, but are not limited to: (1) the Company's inability to further extend its credit facility; (2) uncertainties caused by the Company's failure to comply with the termsof its credit facility; (3) the impact that the Company's financial condition may have on its customers, suppliers and employees; (4) the Company's general lack of liquidity; (5) the outcome of litigation and administrative proceedings pending against the Company; (6) obtaining or maintaining governmental permits and approvals required for the operation of the Company's facilities; (7) changes in the laws and regulations governing the Company's operations; (8) the failure to comply with laws and regulations governing the Company's operations; and (9) the insufficiency of the Company's insurance coverage or the impact of the insolvency of Reliance Insurance Company. These and other risks and assumptions are described in the Company's reports that are available from the United States Securities and Exchange Commission. DATASOURCE: U S Liquids Inc. CONTACT: William DeArman, Chief Executive Officer of U S Liquids Inc., +1-281-272-4511, or Web site: http://www.usliquids.com/

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