Primary Energy Recycling Corporation announces strong first quarter 2008 results

OAK BROOK, IL, April 23 /PRNewswire-FirstCall/ - Primary Energy Recycling
Corporation (TSX: PRI.UN) (the "Company" or "PERC") today released its
financial results for the three months ended March 31, 2008. All amounts are
in U.S. dollars unless otherwise indicated.
Key Points

- Distributable cash for the quarter was Cdn$8.7 million or Cdn$0.23
per Enhanced Income Security (EIS). The payout ratio improved to
85.9%.
- Operating income for the first quarter of 2008 was $2.1 million,
compared to an operating loss of $2.7 million for the same period in
the prior year. The $4.8 million improvement is primarily due to the
contract amendments at Harbor Coal.
- An amendment to the Harbor Coal agreement with the site host is fully
effective and retroactive to January 1, 2008. The agreement was
converted to a simplified tolling formula, and the term of the
agreement was extended for 12 years to 2025.

"In the first quarter of 2008, the Company's financial performance
improved significantly as a result of ratification of our agreement with the
site host at the Harbor Coal facility," said John Prunkl, President of the
Company's Manager. "We believe this will create a new era of reliable
operational performance, improved stability and more predictable cash flow,
with reduced risk that translates into enhanced long-term value for our
unitholders."
"With the Harbor Coal amendment now fully behind us, management's task is
to continue to focus on operational efficiencies and to concentrate efforts to
take advantage of improving market conditions and execute our Company's
strategy for future growth. We believe PERC is positioned for growth as the
market is embracing our vision of producing low-cost, recycled energy
efficiently that addresses cost advantages for the customer and global warming
benefits for society," said Mr. Prunkl.
In the first quarter of 2008, the Company earned revenue of $16.2 million,
a decrease of 3.1% from the first quarter of 2007 primarily due to a decline
in Energy Service revenue at the Company's Harbor Coal facility totaling $0.9
million offset by additional revenue of $0.4 million recorded at other
facilities. Total operating and maintenance expense for the quarter was $2.8
million, down 55.8% from the first quarter of 2007 due to a decline in
maintenance expenses of $4.1 million at the Company's Harbor Coal facility
primarily related to the new amended partnership agreement offset by $0.5
million in increased maintenance expenses at the other facilities. General and
administrative expense for the quarter was $2.8 million, a decrease of 5.0%
from the same period in the prior year, primarily due to a reduction in
property tax expenses of $0.2 million at Harbor Coal.
Distributable Cash for the first quarter of 2008 was Cdn$8.7 million or
Cdn$0.23 per EIS. Distributions declared in the quarter were Cdn$7.4 million
or Cdn$0.20 per EIS.
At the end of the first quarter 2008, the Company had cash on-hand of
$15.5 million and $12 million of undrawn revolver capacity.
The Board of Directors has decided to retain a financial advisor to
evaluate options available to enhance unitholder value.
Distributable Cash Summary
(in 000's of US$, except per share data and as
otherwise indicated)

For the Three Months
Ended March 31,
----------------------
2008 2007
--------- ---------
Distributable Cash $ 7,404 $ 4,241
--------- ---------
--------- ---------
Per Common and equivalent Common Share $ 0.20 $ 0.11
--------- ---------
--------- ---------

Interest on EIS Subordinated Notes $ 1,944 $ 1,944
Distributions on Common Shares 3,350 5,693
Distributions on non-controlling Class B preferred
interest 380 380
Distributions on non-controlling Class B common
interest 685 1,164
--------- ---------
Total distributions $ 6,359 $ 9,181
--------- ---------
--------- ---------
Per Common and equivalent Common Share $ 0.17 $ 0.25
--------- ---------
--------- ---------

Hedge rate (Cdn$ per US$) $ 1.1712 $ 1.1671
Distributable Cash (Cdn$) $ 8,672 $ 4,950
--------- ---------
--------- ---------
Per Common and equivalent Common Share (Cdn$) $ 0.23 $ 0.13
--------- ---------
--------- ---------

Hedge rate (Cdn$ per US$) $ 1.1712 $ 1.1671
Total distributions (Cdn$) $ 7,448 $ 10,715
--------- ---------
--------- ---------
Per Common and equivalent Common Share (Cdn$) $ 0.20 $ 0.28
--------- ---------
--------- ---------

Excess (shortfall) distributable cash (Cdn$) $ 1,224 $ (5,765)
--------- ---------
--------- ---------
Per Common and equivalent Common Share (Cdn$) $ 0.03 $ (0.15)
--------- ---------
--------- ---------

Payout Ratio 85.9% 216.5%

The Company's complete financial statements and Management's Discussion
and Analysis, are available at www.sedar.com or the Company's website at
www.primaryenergyrecycling.com.
Conference Call and Webcast
Management will also host a conference call to further discuss the first
quarter results on Thursday, April 24, at 1:00 p.m. (ET). Following
management's presentation, there will be a question and answer session. To
participate in the conference call, please dial 416-644-3418 or
1-800-732-9303. A conference call replay will be available until 12 a.m. on
May 1, 2008. The replay can be accessed by dialing 416-640-1917 or
1-877-289-8525 and entering passcode 21267933 followed by the number sign. A
webcast replay will also be available for 90 days by accessing a link through
the Investor Information section at www.primaryenergyrecycling.com.
Non-GAAP Measures
Distributable Cash and EBITDA are not recognized measures under U.S. GAAP
or Canadian GAAP and do not have standardized meanings prescribed by U.S. GAAP
or Canadian GAAP. Therefore, Distributable Cash and EBITDA may not be
comparable to similar measures presented by other companies. See the
definitions of Distributable Cash and EBITDA in the Company's MD&A.
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
Primary Energy Recycling Corporation 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

V. Michael Alverson, Chief Financial Officer, EPCOR USA Ventures LLC, (630)
371-0505, investorinfo@epcorusa.com