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Company Press Release

Allied Waste Provides 2000 Outlook

SCOTTSDALE, Ariz., April 6 /PRNewswire/ -- Allied Waste Industries, Inc. (NYSE: AW - news) today provided an update on the progress of its integration of the Browning-Ferris Industries, Inc. (BFI) acquisition and its asset divestiture program, as well as other information to assist investors and analysts as they form their year 2000 outlook for the company. The highlights include:

    -- Expected 2000 EBITDA (adjusted) of between $2.0 billion and
       $2.1 billion;
    -- Expected 2000 adjusted free cash flow of between $300 million and
       $385 million;
    -- Debt expected to be reduced to under $9.8 billion by December 31, 2000;
    -- Net cash proceeds from asset sales since January 1, 2000 totaled
       approximately $327 million;
    -- Revolver capacity at March 31, 2000 of approximately $438 million;
       Tranche D Term Loan balance reduced to approximately $198 million at
       March 31, 2000.

``Eight months of operating the assets we acquired in the purchase of BFI has confirmed the strategic rationale of that transaction and its benefits to long-term shareholder value,'' said Tom Van Weelden, Chairman and CEO of Allied Waste. ``As we continue the integration of the BFI operations with those of Allied Waste, we are excited by the performance and potential of the newly combined asset base. Moreover, general industry conditions are very positive, and we have every reason to believe that they will remain so for the foreseeable future.

``At the same time,'' continued Mr. Van Weelden, ``Allied continues to be subject to the effects of not having completed certain asset divestitures according to our original schedule, which has led to higher interest costs. Furthermore, the delay in the contribution of 'in-bound' assets involved in the pending swap transactions has delayed the benefit to Allied of the earnings associated with those businesses.

``We are, nonetheless, in a good position today to provide investors with an outlook on the year 2000. Our current analysis indicates that adjusted EBITDA for the year 2000 will be within expectations, but with growth weighted towards the third and fourth quarters as the company realizes the benefits of pending divestitures and swap transactions and further pricing initiatives,'' stated Mr. Van Weelden.

``Deleveraging Allied Waste's balance sheet remains a top strategic priority for the company. Our commitment to delivering on this goal is supported by our confidence today that we will complete by year end our current divestiture and swap program and generate net cash proceeds that will allow total debt to be reduced to below $9.8 billion by December 31, 2000,'' concluded Mr. Van Weelden.

Information for Full-year 2000 Outlook

For the full year ended December 31, 2000, Allied Waste expects to achieve the goals listed below. These expectations are premised on current assumptions about the timing of certain ``in-bound'' assets to be acquired in pending swap transactions and the timing of certain pending asset sales. The outlook assumes that there will be no significant market development activity during 2000 other than market development completed in the first quarter ended March 31, 2000. These assumptions highlight Allied Waste's focus on improving cash flow and capital structure by selling and buying assets that allow it to fully integrate its core markets.

    -- Revenues are expected to range from $5.75 billion to $5.85 billion.
    -- Adjusted EBITDA is expected between $2.0 billion and $2.1 billion.
       Adjusted EBITDA is earnings before interest, taxes, depreciation and
       amortization, adjusted to exclude non-recurring transition and
       integration costs.
    -- Adjusted free cash flow for the year 2000 is expected between
       $300 million and $385 million.
    -- Total debt at December 31, 2000 is expected to be below $9.8 billion
       compared to $10.2 billion at December 31, 1999.

Information for First Quarter 2000 Outlook

In updating its outlook for the full-year 2000, Allied Waste made a preliminary forecast of results for the first quarter 2000, which indicated the following:

    -- Revenues are expected to be between $1.34 billion and $1.36 billion.
    -- Adjusted EBITDA is expected to be between $450.0 million and
       $460.0 million.
    -- Total debt was approximately $10.16 billion at March 31, 2000 after
       considering first quarter market development activity for a total
       purchase price of approximately $270 million and proceeds from asset
       sales (net of asset swap activity) of approximately $327 million.
    -- Capacity on the company's revolving credit facility was approximately
       $438 million at March 31, 2000. The company's Tranche D Term Loan
       balance was approximately $198 million at March 31, 2000 and is
       expected to be repaid with asset-sale proceeds by the beginning of the
       third quarter of 2000.

Allied Waste plans to formally report first-quarter results in early May 2000. The reported results for the first quarter ended March 31, 2000 will include non-recurring costs the company is incurring related to its acquisition transition and integration efforts.

Divestiture and Swap Program Update

During the past eight months since the completion of the BFI acquisition, Allied Waste has realized approximately $1.3 billion in net cash proceeds from asset sales, including asset sales since January 1, 2000 totaling approximately $327 million. The company continues to expect that it will fully complete before the end of 2000 its currently outstanding net asset divestiture and swap transactions. Allied Waste today filed with the Securities and Exchange Commission a Form 8-K containing the information in this press release as well as information about its divestiture and swap program.

Allied Waste Industries, Inc., a leading waste services company, provides collection, recycling and disposal services to residential, commercial and industrial customers in the United States.

Safe Harbor for Forward-Looking Statements

Certain matters discussed in this press release are ``forward-looking statements'' intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by the context of the statements, including words such as the Company ``believes,'' ``anticipates,'' ``expects'' or words of similar import. Similarly, statements that describe the Company's future plans, objectives or goals are forward-looking statements.

Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated. Examples of such risks and uncertainties include, without limitation, the ability of Allied to continue its vertical integration business strategy in a successful manner; the ability of Allied to successfully pursue and continue a disciplined market development program, the ability of Allied to successfully integrate the acquired operations, to exit certain regional markets and certain non-strategic businesses, whether and when the recent transactions concluded or completed will be accretive to Allied's earnings, the amount of consideration to be paid and timing of the closing of potential transactions currently under definitive agreement, and whether Allied will be successful in negotiating asset sales at a pace sufficient to achieve the Company's twelve-month goal.

Other factors which could materially affect such forward-looking statements can be found in the Company's periodic reports filed with the Securities and Exchange Commission, including risk factors detailed in Management's Discussion and Analysis in Allied's Form 10-K for the year ended December 31, 1999. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

SOURCE: Allied Waste Industries, Inc.