AIG Highstar Announces Recapitalization of Advanced Disposal Services, Inc.

NEW YORK, July 19 /PRNewswire/ -- AIG Highstar Capital (Highstar) and Advanced Disposal Services, Inc. (Advanced Disposal) announce their agreement to recapitalize Advanced Disposal in a transaction valued at approximately $470MM. The parties have agreed to restructure and replace the existing shareholders of Advanced Disposal and position the company for future growth and expansion. The recapitalization is subject to customary closing conditions and regulatory approvals, which the parties expect to receive within 30 to 60 days.

Highstar is an investment management team that manages private equity funds investing in infrastructure related assets and businesses. Highstar is sponsored by AIG Global Investment Group (AIGGIG).

Advanced Disposal is a non-hazardous solid waste company based in Jacksonville, Florida. The company provides collection, transfer, and disposal services for commercial, industrial, municipal, and residential customers in the Southeastern United States. The company's operations include numerous integrated hauling locations, transfer stations and solid waste disposal facilities.

Commenting on the recapitalization, Charlie Appleby, President of Advanced Disposal, stated, "This marks an exciting new chapter for the company. While the transaction will be essentially transparent to our existing customers and workforce, it provides us with significant resources to fuel our growth and expansion while ensuring the continuation of excellent customer service by the same management team -- from our drivers, dispatchers, sales and service representatives to our general and district managers. This is an ideal strategic alliance between experienced management with a highly successful proven track record and a strong financial backer with relevant industry experience."

Christopher Lee, Managing Partner of Highstar stated, "We are extremely pleased to be participating in the recapitalization of Advanced Disposal as this represents an outstanding opportunity to back a first class management team with well positioned assets in high growth geographic markets. We look forward to supporting the continued growth of the Advanced Disposal business consistent with the company's standards of integrity, customer service, community support and respect for its employees and stakeholders."

About Highstar

Highstar is an investment management team seeking attractive private equity returns and capital appreciation through value added investments in a diversified portfolio of infrastructure related assets and businesses. Highstar currently manages two private equity funds as follows:

AIG Highstar Capital, L.P. and AIG Highstar Capital II, L.P. (Highstar Funds) are leveraged buyout funds sponsored by AIG and AIGGIG respectively. The Highstar Funds seek investment opportunities in infrastructure related businesses and assets with stable cash flows and value enhancement opportunities. The Highstar Funds have made investments and investment commitments in waste management, gas transmission and storage, power generation, waste-to-energy, water and waste water and transportation businesses and assets. The Highstar Funds are based in New York City and Houston.

AIG Global Investment Group

AIG Global Investment Group (AIGGIG) comprises a group of international companies which provide investment advice and market asset management products and services to clients around the world. AIGGIG is a worldwide leader in asset management, with extensive capabilities in equity, fixed income, hedge funds, private equity, and real estate. AIGGIG manages approximately US $532.9 billion in assets, and employs more than 1,600 professionals in 44 offices around the world as of March 31, 2006. Total assets under management include approximately US $449.6 billion of AIG affiliated assets, including those managed by joint ventures, but do not include assets sub-advised to third party managers. The member companies of AIGGIG are subsidiaries of American International Group, Inc. .