FlagshipPDG Announces First Quarter Results for Period Ended April 30, 2009

PITTSBURGH, PA, Jun 15 (MARKET WIRE) --
PDG Environmental, Inc. (dba FlagshipPDG) (OTCBB: PDGE), a leading
provider of environmental remediation, disaster response and
reconstruction services, today reported financial results for the first
fiscal quarter ended April 30, 2009.

Revenues for the first quarter of fiscal 2010 were $12.6 million, down
28.7% from the $17.7 million reported in the first quarter of fiscal 2009.
The decrease was due to lower customer spending resulting from the overall
economic conditions as well as several ongoing contracts being put on hold
during the quarter. The field margin which is defined as the difference
between contract revenues and direct field costs, increased to 29.2% of
revenue for the current quarter, from 26.6% in the prior year fiscal
quarter. Other direct and SG&A costs decreased $1.3 million from the first
quarter of fiscal 2009 largely as a result of cost cutting measures in the
third and fourth quarter of fiscal 2009. Pre-tax loss decreased by
$200,000 from the prior fiscal quarter as a result of the factors noted
previously. The Company reported a net loss of $(1.5) million, or $(0.07)
per diluted share in the first quarter of fiscal 2010, compared with a net
loss of $(1.1) million, or $(0.05) per diluted share in the first quarter
of fiscal 2009. EBITDA (earnings before interest, taxes, depreciation and
amortization) was a negative $(553,000) for the current quarter versus a
negative EBITDA of $(760,000) for the comparable period in fiscal 2009. In
the first quarter of fiscal 2010, FlagshipPDG recorded non-cash accounting
costs of $297,000 related to its July 2005 private placement as compared
to $248,000 for the comparable period last year.

"While the first quarter is historically our slowest revenue quarter, it
is clear that our results were greatly impacted by the overall national
economic conditions. In the last half of fiscal 2009, we took necessary
steps to rationalize our fixed costs to achievable revenue levels which
resulted in a decrease to our overhead cost of approximately $1.3 million
as compared to the comparable period last year. In spite of nearly 30%
lower revenues, we were able to reduce the quarterly loss through cost
cutting and significant margin improvement. We are entering historically
the busiest part of our fiscal year and we are beginning to see an
increase in opportunities and are hopeful that federal economic stimulus
dollars will also have a positive impact on our top line through
increased spending on projects for schools, public housing, DOE site
clean-up and federal buildings," said John C. Regan, chairman and chief
executive officer of FlagshipPDG.

The Company makes use of EBITDA (earnings before interest, taxes,
depreciation and amortization) as a financial measure which it believes is
a useful performance indicator. EBITDA is not a recognized term under
generally accepted accounting principles, or "GAAP," and should not be
considered as an alternative to net income/(loss) or net cash provided by
operating activities, which are GAAP measures. A reconciliation of EBITDA
to net income/(loss) appears at the end of this release as actual results
for the quarter.

About FlagshipPDG

FlagshipPDG, headquartered in Pittsburgh, PA, is a leading provider of
specialty contracting services including asbestos abatement, mold
remediation, emergency response, demolition and reconstruction to
commercial, industrial and governmental clients nationwide. With over
twenty years' experience, FlagshipPDG has offices nationwide capable of
responding to customer requirements coast to coast. For additional
information, please visit http://www.FlagshipPDG.com.

Safe Harbor Statement under Private Securities Act of 1995: The statements
contained in this release, which are not historical facts, may be deemed
to contain forward-looking statements, including, but not limited to,
deployment of new services, growth of customer base, and growth of service
area, among other items. Actual results may differ materially from those
anticipated in any forward-looking statement with regard to magnitude,
timing or other factors. Deviation may result from risk and uncertainties,
including, without limitation, the company's dependence on first parties,
market conditions for the sale of services, availability of capital,
operational risks on contracts, and other risks and uncertainties. The
company disclaims any obligation to update information contained in any
forward-looking statement.

PDG ENVIRONMENTAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

For the Three Months Ended
April 30,
--------------------------
2009 2008
------------ ------------

Contract Revenues $ 12,630,000 $ 17,715,000

Direct Job Costs 8,947,000 13,002,000
------------ ------------

Field Margin 3,683,000 4,713,000

Other Direct Costs 1,830,000 2,480,000
------------ ------------

Gross Margin 1,853,000 2,233,000

(Loss) on Sale of Fixed Assets (18,000) (3,000)
Selling, General and Administrative Expenses 2,825,000 3,461,000
------------ ------------

(Loss) from Operations (990,000) (1,231,000)

Other Income (Expense):
Interest Expense (194,000) (203,000)
Non-Cash Interest Expense for Preferred
Dividends and Accretion of Discount (297,000) (248,000)
Interest and Other Income 20,000 21,000
------------ ------------
(471,000) (430,000)
------------ ------------

(Loss) Before Income Taxes (1,461,000) (1,661,000)
------------ ------------

Income Tax (Benefit) - (517,000)
------------ ------------

Net (Loss) $ (1,461,000) $ (1,144,000)
============ ============

(Loss) Per Common Share - Basic: $ (0.07) $ (0.05)
============ ============

(Loss) Per Common Share - Diluted: $ (0.07) $ (0.05)
============ ============

Average Common Shares Outstanding 20,875,000 20,814,000

Average Dilutive Common Stock Equivalents
Outstanding - -
------------ ------------

Average Common Shares and Dilutive Common Stock
Equivalents Outstanding 20,875,000 20,814,000
============ ============

PDG ENVIRONMENTAL, INC. AND SUBSIDIARIES
RECONCILIATION OF EARNINGS BEFORE INTEREST,
TAXES, DEPRECIATION AND AMORTIZATION
("EBITDA")
(UNAUDITED)

For the Three Months Ended
April 30,
--------------------------
2009 2008
------------ ------------

Net (Loss) (1,461,000) (1,144,000)

Interest Expense 194,000 203,000
Non-Cash Interest Expense for Preferred
Dividends and Accretion of Discount 297,000 248,000
Income Tax (Benefit) - (517,000)
Depreciation and Amortization 417,000 450,000
------------ ------------

EBITDA $ (553,000) $ (760,000)
============ ============

PDG ENVIRONMENTAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

April 30, January 31,
2009 2009
------------ ------------
ASSETS (unaudited)

Current Assets
Cash and Cash Equivalents $ 30,000 $ 314,000
Contracts Receivable, Net 14,892,000 20,677,000
Costs and Estimated Earnings in Excess of
Billings on Uncompleted Contracts 2,209,000 3,180,000
Inventories 634,000 616,000
Income Taxes Receivable 3,000 355,000
Deferred Income Tax Asset 983,000 983,000
Other Current Assets 2,119,000 344,000
------------ ------------

Total Current Assets 20,870,000 26,469,000

Property, Plant and Equipment 12,420,000 12,431,000
Less: Accumulated Depreciation (10,990,000) (10,786,000)
------------ ------------
1,430,000 1,645,000

Intangible Assets, Net 3,824,000 4,026,000
Goodwill 2,489,000 2,489,000
Deferred Income Tax Asset 2,948,000 2,948,000
Contracts Receivable, Non Current 1,820,000 1,820,000
Costs in Excess of Billings on Uncompleted
Contracts, Non Current 1,630,000 1,630,000
Other Assets 326,000 345,000
------------ ------------

Total Assets $ 35,337,000 $ 41,372,000
============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
Accounts Payable $ 8,232,000 $ 9,411,000
Billings in Excess of Costs and Estimated
Earnings on Uncompleted Contracts 982,000 1,125,000
Accrued Income Taxes - 44,000
Accrued Liabilities 4,530,000 2,742,000
Current Portion of Long-Term Debt 250,000 303,000
Mandatorily Redeemable Cumulative Convertible
Series C Preferred Stock 190,000 137,000
------------ ------------

Total Current Liabilities 14,184,000 13,762,000

Long-Term Debt 9,748,000 15,045,000

Mandatorily Redeemable Cumulative Convertible
Series C Preferred Stock 4,616,000 4,372,000
------------ ------------

Total Liabilities 28,548,000 33,179,000

Stockholders' Equity
Common Stock 418,000 418,000
Common Stock Warrants 1,628,000 1,628,000
Paid-In Capital 20,168,000 20,111,000
Accumulated Deficit (15,387,000) (13,926,000)
Less Treasury Stock, at Cost (38,000) (38,000)
------------ ------------

Total Stockholders' Equity 6,789,000 8,193,000
------------ ------------

Total Liabilities and Stockholders' Equity $ 35,337,000 $ 41,372,000
============ ============

PDG ENVIRONMENTAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

For the Three Months Ended
April 30,
--------------------------
2009 2008
------------ ------------
Cash Flows From Operating Activities:
Net (Loss) $ (1,461,000) $ (1,144,000)
Adjustments to Reconcile Net Income (Loss) to
Cash Provided by (Used in) Operating
Activities:
Depreciation and Amortization 417,000 450,000
Deferred Income Taxes - (517,000)
Interest Expense for Series C Preferred Stock
Dividends and Accretion of Discount 297,000 248,000
Stock Based Compensation 57,000 129,000
Loss on Sale of Fixed Assets 18,000 3,000
Provision for Receivable Allowance (8,000) -
------------ ------------
(680,000) (831,000)

Changes in Operating Assets and Liabilities:
Contracts Receivable 5,793,000 2,806,000
Costs and Estimated Earnings in Excess of
Billings on Uncompleted Contracts 971,000 59,000
Inventories (18,000) 88,000
Accrued Income Taxes (44,000) (68,000)
Other Current Assets 1,307,000 370,000
Accounts Payable (1,179,000) (1,793,000)
Billings in Excess of Costs and Estimated
Earnings on Uncompleted Contracts (143,000) 27,000
Accrued Liabilities 44,000 (81,000)
------------ ------------
Total Changes 6,731,000 1,408,000
------------ ------------
Net Cash Provided by Operating Activities 6,051,000 577,000

Cash Flows From Investing Activities:
Purchase of Property, Plant and Equipment (18,000) (86,000)
Proceeds from Sale of Fixed Assets - 1,000
Changes in Other Assets 19,000 3,000
------------ ------------
Net Cash Provided by (Used in) Investing
Activities 1,000 (82,000)

Cash Flows From Financing Activities:
Payment of Premium Financing Liability (986,000) (326,000)
Principal Payments on Debt (5,350,000) (172,000)
------------ ------------
Net Cash Used in Financing Activities (6,336,000) (498,000)
------------ ------------

Net Decrease in Cash and Cash Equivalents (284,000) (3,000)
Cash and Cash Equivalents, Beginning of Year 314,000 90,000
------------ ------------
Cash and Cash Equivalents, End of Period $ 30,000 $ 87,000
============ ============

Supplementary Disclosure of Non-Cash Investing
and Financing Activity:
Financing of Annual Insurance Premium $ 2,730,000 $ 1,313,000
============ ============
Non-Cash Purchase of Fixed Assets Financed
Through Capital Leases $ - $ 27,000
============ ============

Investor Contact:
Alliance Advisors, LLC.
Mark McPartland / Chris Camarra
212-398-3487
Email Contact

Company Contact:
John C. Regan, Chairman & CEO
Nick Battaglia, CFO
412-243-3200

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