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Exhibit 99.1
FOR IMMEDIATE RELEASE:
CONTACT: INVESTOR RELATIONS
US INDUSTRIAL SERVICES, INC.
(847) 509-8500
USIS SELLS REMAINING ENVIRONMENTAL SERVICES SUBSIDIARIES;
MANAGEMENT ACQUIRES SUBSTANTIAL EQUITY STAKE
Northbrook, Illinois, January 5, 2001 - US Industrial Services, Inc. (the
"Company") OTC BB: USIS, announced the sale of its final remaining environmental
services businesses to a private entity. In this transaction, the Company sold
all of the outstanding capital stock of P.W. Stephens Environmental, Inc., P.W.
Stephens Contractors, Inc., P.W. Stephens Services, Inc. and P.W. Stephens
Northwest, Inc., each a wholly-owned subsidiary of the Company. Frank J.
Fradella, President and Chief Executive Officer of the Company, stated "the sale
of the remaining P.W. Stephens entities is consistent with the Company's
strategy of moving away from the environmental services business and directing
its attention to industries which we hope will provide significantly more value
to our shareholders."
The Company also announced the sale by Deere Park Capital, L.L.C., a
Chicago-based private investment firm, of 3,587,929 shares of the Company's
common stock, constituting approximately 41% of the total number of outstanding
shares, to Mr. Fradella. Prior to the sale, Deere Park Capital owned 7,175,858
shares of the Company's common stock, constituting approximately 82% of the
total number of outstanding shares. Mr. Fradella also received an option to
purchase additional stock owned by Deere Park Capital, exercisable for a period
of six months, subject to earlier termination in certain events. In connection
with his purchase, Mr. Fradella acquired the right to designate a fourth member
of the Company's board of directors. Commenting on the transaction, Mr. Fradella
noted, "I appreciate the opportunity granted to me by Deere Park Capital to
acquire this interest in the Company. This acquisition has aligned the interests
of management with the interests of the Company's shareholders. We appreciate
the input and guidance given to the Company by Deere Park Capital, which was
instrumental in helping the Company with its exit from the environmental
services business, and we look forward to the continued key role of Deere Park
Capital as we focus on the Company's future."
The Company previously announced the retention of the investment banking firm of
Sanders Morris Harris, of Houston, Texas, as the Company's financial advisor to
identify and pursue potential candidates for acquisition using the proceeds of
the Company's sale of the P.W. Stephens entities and other former subsidiaries
of the Company.
The Company has been a multi-state service company specializing in industrial
cleaning and remediation services; however, the Company has recently liquidated
its operating assets and is currently exploring strategic acquisition
opportunities in an effort to maximize shareholder value.
Statements included in this update that are not historical in nature are
intended to be, and are hereby identified as, "forward-looking statements" for
purposes of the safe harbor provided by Section 21E of the Securities Exchange
Act of 1934, as amended by Public Law 104-67. Forward looking statements may be
identified by words including "anticipate," "believe," "intends," "estimates,"
"expect" and similar expressions. The Company cautions readers that
forward-looking statements including, without limitation, those relating to the
Company's future business prospects are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
indicated in the forward-looking statements, due to factors such as those
relating to economic, governmental, technological and other risks and factors
identified from time to time in the Company's reports filed with the SEC.
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