O-AT-KA SIGNS CONTRACT WITH ECOVATION

Company to design, build, and operate new wastewater treatment plant

Ecovation, Inc. announced today that it has signed a contract to build a new wastewater treatment and renewable energy production plant for O-AT-KA Milk Products Cooperative, Batavia, NY. The design, build, finance and operate agreement allows O-AT-KA to replace its current outdated system and benefit from a lower cost, renewable energy alternative.

As part of Ecovation’s completely integrated solution, O-AT-KA’s process wastewater will be treated by a Krofta dissolved air flotation (DAF) unit followed by an aerobic system. A high-strength stream made of UF permeate, currently disposed of through land application, will be processed through Ecovation’s patented MFT system to maximize energy potential.

The new system will keep O-AT-KA in complete compliance with the City of Batavia’s POTW discharge requirements, even considering future increased production capacity at the plant. Additionally, the methane gas produced by anaerobically treating the UF permeate stream would be delivered back to
O-AT-KA’s boiler plant to generate steam, displacing costly natural gas. Significant cost savings are anticipated over the initial 10-year contract.

“Ecovation’s solution provides us benefits on many different levels,” said Mac McCampbell, COO for O-AT-KA. “We’ll save money in reduced fees to our POTW, we’ll save energy costs by using the methane gas in our production plant, and we’ll eliminate the environmental risks associated with land application of our waste product. In addition, Ecovation’s approach provides us with the opportunity for strategic growth of our business.”

Besides the obvious benefit for the O-AT-KA facility, McCampbell noted that the upgrade would allow them to pretreat waste streams from other related plants. “We’re even looking at outside industries that could build in the industrial park next to our facility. We could be their pre-treatment provider, keep them in compliance with the city, and we could benefit from the additional energy source.”

“We strive to be more than just a wastewater technology provider by offering customized, creative solutions that can have a positive impact on our customer’s business,” said Diane C. Creel, Ecovation’s chairman and CEO. “For O-AT-KA, we provide a unique and long-term strategy for managing their wastes.”

“This project is Ecovation’s fifth major project in the State of New York for the food and beverage industry,” said Daniel J. Hagen, SVP Client Development with Ecovation. “Once the O-AT-KA facility is fully operational, our total production of renewable fuel for projects in New York will be in excess of 2.55 million therms per year, demonstrating Ecovation’s support the Governor’s renewable fuel initiative.”

Construction of the new facility is set to begin this summer, with plans to be fully-operational in March 2007.

June 5, 2006

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