Re: Envirocare - latest information

[GilsonDG@aol.com]

Public Statement
January 2, 1997

SALT LAKE CITY, UTAH -- A lawsuit was filed against Mr. Khosrow Semnani and
Envirocare of Utah, Inc. in October, 1996 by Mr. Larry Anderson, the former
Director of the Utah Bureau of Radiation Control. Mr. Anderson claims to have
approached Mr. Semnani and requested and entered into a verbal contract which
entitles him to receive payment from Mr. Semnani and Envirocare.

Mr. Semnani and Envirocare have filed a response and counterclaim stating
that (1) Mr. Anderson requested payments from Mr. Semnani and Mr. Semnani
believes that such requests were in violation of law, (2) Mr. Semnani made
payments because of concerns that Mr. Anderson otherwise would not provide a
fair and objective review of his licensing application, and (3) that no
special work or regulatory relief was requested of or provided by Mr.
Anderson during the licensing process; and no contract, verbal or otherwise,
ever existed for services to be provided by Mr. Anderson. No payments were
ever made by Envirocare of Utah.

Mr. Semnani immediately advised the Utah Attorney General’s office of the
lawsuit, of Mr. Anderson’s payment demands, and has provided requested
information. An investigation is underway by the Utah Attorney General’s
office. Mr. Semnani and Envirocare will continue to fully cooperate with the
investigation. Additionally, Mr. Semnani has advised the press about the
lawsuit and provided information.

Protection of public health and the environment has always been and continues
to be Envirocare’s primary objective. Since Envirocare’s beginning, many
individuals have been involved with the licensing and oversight of
Envirocare, both during Mr. Anderson’s tenure and since his departure more
than three years ago. The Division of Radiation Control, under the direction
of Mr. Bill Sinclair since June, 1993, has performed license reviews,
amendments and modifications as well as inspections of the Envirocare
facilities.

Envirocare’s license is also subject to multi-agency reviews. Included in
these agencies are the Utah Division of Water Quality, the Utah Division of
Solid and Hazardous Waste, and the U.S. Nuclear Regulatory Commission (NRC),
which reviewed Envirocare’s low level radioactive license and approved the
State of Utah’s actions. Additionally, the NRC issued a license to Envirocare
for the receipt of 11e.(2) radioactive waste in October of 1993.

Envirocare’s operations are protective of public health and the environment.
Envirocare’s license remains in effect and operations continue to proceed
without interruption. Envirocare is confident that the results of this
investigation will confirm Mr. Semnani’s claims and shall not interrupt
Envirocare’s ability to continue operating compliantly in Utah.