EnergySolutions Announces Strong Full Year 2007 Results

Full Year Pro Forma Revenues of $1.8 Billion; Full Year Pro Forma EBITDA of $184.8 Million; Full Year Pro Forma Net Income Before the Impact of Amortization of Intangible Assets of $75.7 Million or $0

SALT LAKE CITY, UT -- (MARKET WIRE) -- 03/17/08 -- EnergySolutions, Inc. (NYSE: ES) ("EnergySolutions" or the "Company"), a leading provider of specialized, technology-based nuclear services to government and commercial customers, today announced financial results for the Company's fourth quarter and fiscal year ended December 31, 2007. The Company priced its initial public offering on the New York Stock Exchange on November 14, 2007.

Full Year Results

Revenues for the year ended December 31, 2007 were $1.1 billion, compared to $427.1 million for the same period in 2006. The increase in revenues was primarily the result of the acquisitions of Reactor Sites Management Company Limited ("RSMC") and Duratek, Inc. ("Duratek") in June 2007 and June 2006, respectively. Net loss for the year ended December 31, 2007 was $8.9 million, compared to net income of $26.9 million for the same period in 2006.

Pro Forma Full Year Results

During 2007, the Company acquired RSMC, a reactor operator and manager of multiple nuclear sites in the United Kingdom, which significantly expanded the Company's international capabilities. The Company financed this acquisition with debt, which was paid off with the proceeds of the Company's initial public offering in November. Proceeds from the initial public offering were also used to pay down $108.2 million of additional debt and to pay certain amounts owed to current and former management pursuant to provisions in their employment agreements. In connection with the initial public offering, the Company also completed a reorganization to change its corporate structure from a limited liability company to a "C" corporation.

Accordingly, to assist investors, the Company has presented "pro forma" financial statements (table 4 below) to illustrate the estimated full-year and fourth-quarter pro forma effects of the RSMC acquisition, the reorganization of the Company into a "C" corporation, the initial public offering and other transactions related to the offering as if such events had occurred on January 1, 2007. These pro forma results are discussed in this release, together with a reconciliation to the historic financial information (table 5 below). Pro forma results are presented and discussed because the Company considers them useful for investors as more indicative of the underlying performance of the business as currently constituted for the year ended December 31, 2007.

Pro forma revenues for the year ended December 31, 2007 were $1.8 billion, pro forma gross profit was $249.8 million and pro forma selling, general and administrative expenses were $114.1 million. Pro forma net income for the 2007 fiscal year was $57.0 million, or $0.64 per share, and pro forma net income before the impact of amortization of intangible assets for the year ended December 31, 2007 was $75.7 million, or $0.85 per share, based on 88.7 million fully-diluted shares outstanding. Pro forma EBITDA for the year ended December 31, 2007 was $184.8 million. The Company defines EBITDA as earnings before interest expense, income taxes, depreciation and amortization. The Company defines net income before the impact of amortization of intangible assets as net income plus amortization expense of intangible assets, net of the related income tax expense. The reconciliation of EBITDA, pro forma EBITDA and net income before the impact of amortization of intangible assets to the most directly comparable GAAP measure is set forth in table 5 in the accompanying tables.

"We are pleased with our financial results for 2007. They confirm a strong year across our businesses and exceeded our expectations at the time of our initial public offering," said R Steve Creamer, the Company's Chief Executive Officer. "The advantages of our increased size, breadth and geographic scope have significantly strengthened our strategic position as a leading supplier of specialized technology-based nuclear services worldwide. Together with financial strength from reduced leverage following our initial public offering, and our wider access to capital that comes with a listing on the NYSE, we are positioned well for future organic and acquisition-based growth."

Business Segments - Pro Forma Full Year Results

Table 6 in the accompanying schedules presents the pro forma results for the Company's four business segments and table 7 presents a reconciliation to the GAAP amounts.

Federal Services pro forma revenues were $151.4 million, and segment pro forma income from operations was $31.2 million, resulting in a pro forma operating margin of 21%. In 2007, this segment benefited primarily from continued cleanup work at several U.S. Department of Energy ("DOE") sites. In June 2007, EnergySolutions was awarded the contract to clean up the Atlas mill tailings located in southeastern Utah on the banks of the Colorado River. The Company also incurred expenses in this segment during the year to prepare several large bids for federal contracts that have the potential to sustain growth well into the future. The bids submitted included two bids for contracts for the DOE's Hanford site in Washington.

Commercial Services pro forma revenues were $137.4 million, and segment pro forma income from operations was $20.2 million, resulting in a pro forma operating margin of 15%. In December 2007, the Company finalized a contract with Exelon Corporation to decommission two nuclear reactors in Zion, Illinois. This contract successfully launches the Company's licensed stewardship program which enables it to efficiently and cost-effectively decommission nuclear reactors. This paradigm-shifting contract provides long-term revenues, and positions EnergySolutions well to pursue similar arrangements with the remaining 11 reactors that are currently in "SAFESTOR" status around the U.S.

Logistics, Processing and Disposal pro forma revenues were $262.8 million, and pro forma income from operations was $99.4 million, resulting in a pro forma operating margin of 38%. In May 2007, EnergySolutions submitted a rulemaking request to the U.S. Nuclear Regulatory Commission ("NRC") requesting that the NRC consider allowing the use of decommissioning funds for the transportation and disposal of large components located at nuclear power sites around the country. The public comment process was completed in December 2007. The Company believes this is an important environmental initiative that will allow these components to be safely disposed at its licensed landfill at Clive, Utah, in a much more expeditious timeframe than would otherwise be possible.

International pro forma revenues were $1.3 billion, and pro forma income from operations was $51.9 million, resulting in a pro forma operating margin of 4%. The acquisition of RSMC in the United Kingdom in June 2007 was a significant accomplishment for the Company. It provided a large base of highly-qualified employees that positions EnergySolutions well to pursue other opportunities in the United Kingdom and throughout Europe.

Fourth Quarter Results

Revenues for the quarter ended December 31, 2007 were $427.9 million, compared to $132.8 million for the same period in 2006. The increase in revenues was primarily the result of the acquisition of RSMC in June of 2007. Net loss for the quarter ended December 31, 2007 was $4.8 million, compared to net income of $9.5 million for the same period in 2006.

Pro Forma Fourth Quarter Results

Pro forma revenues for the quarter ended December 31, 2007, were $427.9 million, pro forma gross profit was $61.5 million and pro forma selling, general and administrative expenses were $32.6 million. Pro forma net income for the quarter ended December 31, 2007 was $10.4 million, or $0.12 per share, and pro forma net income before the impact of amortization of intangible assets for the quarter ended December 31, 2007 was $14.9 million, or $0.17 per share, based on 88.7 million fully-diluted shares outstanding. Pro forma EBITDA for the fourth quarter ended December 31, 2007 was $40.6 million.

Outlook for 2008

"As we look forward, the nuclear services sector remains robust and we see significant opportunities for us to grow in each of our business segments," said Mr. Creamer. "We estimate there are $55 billion of DOE contracts coming up for bid in the next three years for maintenance, operation, decontamination and decommissioning. Our services to U.S. commercial nuclear customers will continue to benefit from our provision of recurring on-site services across the active nuclear reactors, complemented by paradigm changing decommissioning solutions we are able to offer to our customers such as our large components removal services and our license stewardship program. Internationally, as countries endeavor to expand nuclear power generation, many seek to address the clean-up associated with legacy nuclear infrastructure. With our major presence in the U.S. and Europe we are in an excellent position to benefit from that trend."

The Company expects full year 2008 revenues to be in the range of $1.8 billion to $1.9 billion and earnings per share to be in the range of $0.69 to $0.74. Earnings per share before the impact of amortization of intangible assets, which is calculated as earnings per share plus the per share impact of amortization expense of intangible assets, net of related income tax expense, is expected to be in the range of $0.89 to $0.94. When calculating per share amounts, the Company assumes a weighted average fully-diluted share count for the year of 89 million shares. EBITDA for the year ending December 31, 2008 is expected to be between $195 million and $205 million. Amortization expense of intangible assets, net of related income tax expense, is expected to be $17.8 million for 2008. Compensation expense related to stock option grants is expected to be $9.1 million for 2008. Capital expenditures for the year are expected to be approximately $37 million, primarily relating to the one-time purchases of equipment for the Company's Atlas mill tailings contract awarded in June 2007 as well as the general maintenance of the Company's facilities.

Based on the expected timing of the license transfer of the Zion license stewardship contract, the large U.S. DOE contract awards and the NRC rulemaking change for major components, the Company expects revenues and earnings for 2008 to be weighted towards the second half of the year.

Forward-Looking Statements

Statements in this news release regarding future financial and operating results and any other statements about the Company's future expectations, beliefs or prospects expressed by management constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including economic conditions generally. Additional information on potential factors that could affect the Company's results and other risks and uncertainties are set forth in the EnergySolutions, Inc. final prospectus dated as of November 14, 2007, filed with the Securities and Exchange Commission (the "SEC") pursuant to Rule 424(b)(4). We do not undertake any obligation to release publicly any revision to any of these forward-looking statements.

Conference Call

The Company will conduct a conference call at 10:00 a.m. EDT on Tuesday, March 18, 2008, to discuss financial results for the year ended December 31, 2007.

Hosting the call will be Steve Creamer, Chairman and Chief Executive Officer, and Philip Strawbridge, Chief Financial Officer.

To participate in the event by telephone, please dial (888)-679-8018 five to 10 minutes prior to the start time (to allow time for registration) and reference the conference passcode 79449805. International callers should dial (617)-213-4845 and use the same passcode.

A replay of the call will be available on Tuesday, March 18, 2008, at 12:00 p.m. EDT through Tuesday, March 25, 2008, at 2:00 pm EDT. To access the replay, dial (888)-286-8010 and enter passcode 80852752. International callers should dial (617)-801-6888 and enter the same passcode.

The conference call will be broadcast live over the Internet and can be accessed by all interested parties through the Company's Web site at www.energysolutions.com by clicking on the "investor relations" tab at the top of the home page. To listen to the live call, please visit the Web site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. An audio replay of the event will be archived on EnergySolutions' Web site for 90 days.

Please use the following link to pre-register for this conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. You should pre-register prior to the conference call. To pre-register please go to:

https://www.theconferencingservice.com/prereg/key.process?key=PQBY8RPDK

About EnergySolutions

EnergySolutions offers customers a full range of integrated services and solutions, including nuclear operations, characterization, decommissioning, decontamination, site closure, transportation, nuclear materials management, the safe, secure disposition of nuclear waste, and research and engineering services across the fuel cycle.

Table 1

ENERGYSOLUTIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except per share data)

For the Quarter For the Year Ended December 31, Ended December 31, 2007 (1) 2006 (2) 2007 (1) 2006 (2) ----------- ----------- ----------- ----------- Revenues $ 427,860 $ 132,798 $ 1,092,613 $ 427,103 Cost of revenues 366,212 78,972 898,339 235,867 ----------- ----------- ----------- ----------- Gross profit 61,648 53,826 194,274 191,236

Selling, general and administrative expenses 42,005 33,102 122,438 101,262 ----------- ----------- ----------- ----------- Income from operations 19,643 20,724 71,836 89,974

Interest expense (20,903) (15,291) (72,689) (68,566) Other income, net 4,767 333 3,364 3,113 ----------- ----------- ----------- ----------- Income before minority interests and income taxes 3,507 5,766 2,511 24,521

Minority interests (92) - (92) -Income tax (expense) benefit (8,184) 3,765 (11,318) 2,342 ----------- ----------- ----------- ----------- Net income (loss) $ (4,769) $ 9,531 $ (8,899) $ 26,863 =========== =========== =========== ========== Net income (loss) per share: Basic $ (0.11) $ (0.79) Diluted $ (0.11) $ (0.79)

Number of shares used in per share calculations (in thousands): Basic 44,730 11,274 Diluted 44,730 11,274

(1) Includes the results of operations of Parallax, Inc., Reactor Sites Management Company Limited and its subsidiaries, NUKEM Corporation and Monserco Limited from the dates of their acquisitions in January 2007, June 2007, July 2007 and December 2007, respectively. (2) Includes the results of operations of BNG America, LLC and its subsidiaries, Duratek, Inc. and its subsidiaries and Safeguard International Solutions, Ltd. from the dates of their acquisitions in February 2006, June 2006 and December 2006, respectively.

Table 2

ENERGYSOLUTIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands)

December 31, December 31, 2007 2006 ------------- -------------Assets Current assets: Cash and cash equivalents $ 36,366 $ 4,641 Accounts receivable, net of allowance for doubtful accounts 366,083 82,965 Other current assets 103,233 100,229 ------------- ------------- Total current assets 505,682 187,835

Property, plant and equipment, net 110,688 128,845 Goodwill 526,040 462,389 Other intangible assets, net 383,812 296,226 Other noncurrent assets 98,728 81,910 ------------- ------------- Total assets $ 1,624,950 $ 1,157,205 ============= ============ Liabilities and Shareholders' / Member's Equity Current liabilities: Current portion of long-term debt $ 1,557 $ 11,565 Accounts payable 155,663 23,357 Accrued expenses and other current liabilities 233,588 67,872 Other current liabilities 45,135 52,905 ------------- ------------- Total current liabilities 435,943 155,699

Long-term debt, less current portion 605,410 749,602 Other noncurrent liabilities 178,206 102,924 ------------- ------------- Total liabilities 1,219,559 1,008,225 ------------- ------------- Minority interest 68 - Shareholders' / member's equity 405,323 148,980 ------------- ------------- Total liabilities and shareholders' / member's equity $ 1,624,950 $ 1,157,205 ============= ============ Table 3

ENERGYSOLUTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands)

For the Quarter For the Year Ended December 31, Ended December 31, 2007 2006 2007 2006 --------- --------- --------- --------- Cash Provided by Operating Activities $ 39,958 $ 14,700 $ 152,796 $ 69,756 --------- --------- --------- --------- Investing Activities Purchases of businesses, net of cash acquired (2,705) (12,993) (199,105) (447,912) Purchases of property, plant and equipment (7,670) (5,082) (13,312) (23,910) Proceeds from disposition of property, plant and equipment 579 55 579 58 --------- --------- --------- ---------Cash Used in Investing Activities (9,796) (18,020) (211,838) (471,764) --------- --------- --------- --------- Financing Activities Net borrowings (repayments) of long-term debt (270,200) (1,908) (154,200) 211,167 Member's capital contributions - - - 175,000 Proceeds from issuance of common stock, net of issuance costs 271,142 - 271,142 - Other items (5,470) 2,854 (25,008) (14,316) --------- --------- --------- ---------Cash Provided by (Used in) Financing Activities (4,528) 946 91,934 371,851 --------- --------- --------- --------- Effect of Exchange Rate on Cash (380) - (1,167) - --------- --------- --------- --------- Increase (Decrease) in Cash and Cash Equivalents $ 25,254 $ (2,374) $ 31,725 $ (30,157) ========= ========= ========= ======== Amortization of Intangible Assets $ 7,027 $ 4,822 $ 24,147 $ 16,589 ========= ========= ========= ========Depreciation $ 4,571 $ 4,685 $ 19,083 $ 12,039 ========= ========= ========= ======== Table 4

ENERGYSOLUTIONS, INC. PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except per share data)

For the Quarter For the Year Ended Ended December 31, December 31, 2007 2007 ------------- ------------- Revenues $ 427,860 $ 1,804,626 Cost of revenues 366,334 1,554,849 ------------- ------------- Gross profit 61,526 249,777

Selling, general and administrative expenses 32,564 114,107 ------------- ------------- Income from operations 28,962 135,670

Interest expense (12,304) (53,379) Other income, net 171 1,361 ------------- ------------- Income before minority interests and income taxes 16,829 83,652

Minority interests (92) (92) Income tax expense (6,386) (26,599) ------------- ------------- Net income 10,351 56,961

Amortization of intangible assets 7,027 28,728 Income tax expense (2,453) (10,000) ------------- ------------- Net income before the impact of amortization of intangible assets $ 14,925 $ 75,689 ============= ============ EBITDA $ 40,639 $ 184,750 ============= ============ Net income per share: Basic $ 0.12 $ 0.65 Diluted $ 0.12 $ 0.64

Net income before the impact of amortization of intangible assets per share: Basic $ 0.17 $ 0.86 Diluted $ 0.17 $ 0.85

Number of shares used in per share calculations (in thousands): Basic 88,306 88,306 Diluted 88,720 88,720

Table 4 (Continued)

The unaudited pro forma financial information set forth above is derived from the Company's historical financial information, as adjusted to give pro forma effect to the following transactions as if each had occurred as of January 1, 2007:

-- the Company's acquisition of RSMC -- the reorganization of the Company from a limited liability company to a "C" corporation -- the Company's sale of 13,153,500 shares of common stock at the initial public offering price of $23.00 per share and the use of the net proceeds to acquire RSMC, pay down debt and make payments to certain executives for termination of certain bonus payments in accordance with their employment agreements -- the elimination of the advisory fees that the Company had paid to its equity sponsors under advisory services agreements that have been terminated following the Company's initial public offering; -- the elimination of non-cash compensation expense related to stock options granted to employees on the date of the Company's initial public offering;

The pro forma financial information has been prepared based upon available information and assumptions that the Company believes are reasonable. However, the pro forma financial information is presented for illustrative and informational purposes only and does not purport to represent what the Company's results of operations or financial condition would have been if the pro forma transactions had occurred on the assumed dates nor are they necessarily indicative of the Company's future performance.

Table 5

ENERGYSOLUTIONS, INC. RECONCILIATION OF GAAP TO PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Dollars in thousands, except per share data)

For the Quarter Ended December 31, 2007 ------------------------------------------- GAAP Adjustments Pro Forma ----------- ----------- ----------- Revenues $ 427,860 $ - $ 427,860 Cost of revenues 366,212 122 (1) 366,334 ----------- ----------- ----------- Gross profit 61,648 (122) 61,526

Selling, general and administrative expenses 42,005 (9,441) (2) 32,564 ----------- ----------- ----------- Income from operations 19,643 9,319 28,962

Interest expense (20,903) 8,599 (3) (12,304) Other income, net 4,767 (4,596) (4) 171 ----------- ----------- ----------- Income before minority interests and income taxes 3,507 13,322 16,829

Minority interests (92) - (92) Income tax (expense) benefit (8,184) 1,798 (5) (6,386) ----------- ----------- ----------- Net income (loss) $ (4,769) $ 15,120 $ 10,351 =========== =========== ========== Reconciliation of net income (loss) to EBITDA: Net income (loss) $ (4,769) $ 10,351 Interest expense 20,903 12,304 Income tax expense 8,184 6,386 Depreciation expense 4,571 4,571 Amortization of intangible assets 7,027 7,027 ----------- ----------- EBITDA $ 35,916 $ 40,639 =========== ========== Reconciliation of net income (loss) to Net income (loss) before the impact of amortization of intangible assets: Net income (loss) $ (4,769) $ 10,351 Amortization of intangible assets 7,027 7,027 Income tax expense related to the reconciling items (2,453) (2,453) ----------- ----------- Net income (loss) before the impact of amortization of intangible assets $ (195) $ 14,925 =========== ========== Net income (loss) per share: Basic $ (0.11) $ 0.12 Diluted $ (0.11) $ 0.12

Net income before the impact of amortization of intangible assets per share: Basic $ (0.00) $ 0.17 Diluted $ (0.00) $ 0.17

Number of shares used in per share calculations (in thousands): Basic 44,730 88,306 Diluted 45,145 88,720

For the Year Ended December 31, 2007 ------------------------------------------- GAAP Adjustments Pro Forma ----------- ----------- ----------- Revenues $ 1,092,613 $ 712,013 (6) $ 1,804,626 Cost of revenues 898,339 656,510 (7) 1,554,849 ----------- ----------- ----------- Gross profit 194,274 55,503 249,777

Selling, general and administrative expenses 122,438 (8,331) (8) 114,107 ----------- ----------- ----------- Income from operations 71,836 63,834 135,670

Interest expense (72,689) 19,310 (3) (53,379) Other income, net 3,364 (2,003) (4) 1,361 ----------- ----------- ----------- Income before minority interests and income taxes 2,511 81,141 83,652

Minority interests (92) - (92) Income tax (expense) benefit (11,318) (15,281) (5) (26,599) ----------- ----------- ----------- Net income (loss) $ (8,899) $ 65,860 $ 56,961 =========== =========== ========== Reconciliation of net income (loss) to EBITDA: Net income (loss) $ (8,899) $ 56,961 Interest expense 72,689 53,379 Income tax expense 11,318 26,599 Depreciation expense 19,083 19,083 Amortization of intangible assets 24,147 28,728 ----------- ----------- EBITDA $ 118,338 $ 184,750 =========== ========== Reconciliation of net income (loss) to Net income (loss) before the impact of amortization of intangible assets: Net income (loss) $ (8,899) $ 56,961 Amortization of intangible assets 24,147 28,728 Income tax expense related to the reconciling items (8,718) (10,000) ----------- ----------- Net income (loss) before the impact of amortization of intangible assets $ 6,530 $ 75,689 =========== ==========Net income (loss) per share: Basic $ (0.79) $ 0.65 Diluted $ (0.79) $ 0.64

Net income before the impact of amortization of intangible assets per share: Basic $ 0.58 $ 0.86 Diluted $ 0.56 $ 0.85

Number of shares used in per share calculations (in thousands): Basic 11,274 88,306 Diluted 11,689 88,720

(1) Pro forma adjustment due to the following: Non-cash accretion income of decontamination and decommissioning liabilities $ 494 Non-cash compensation expense related to stock options granted to employees on the date of the Company's initial public offering (372) ----------- $ 122 ========== (2) Pro forma adjustment due to the following: Advisory fees to equity sponsors prior to termination of advisory services agreements in connection with the Company's initial public offering $ (639) Non-cash equity compensation related to profit interests (596) Compensation paid to certain executives in connection with the Company's initial public offering to terminate certain bonus arrangements in accordance with their employment agreements (6,945) Non-cash compensation expense related to stock options granted to employees on the date of the Company's initial public offering (1,261) ----------- $ (9,441) ========== (3) Pro forma adjustment to reflect reduction of interest expense as a result of paydown of debt from use of proceeds from the Company's initial public offering as if paydown occurred on January 1, 2007 and increase in interest expense for amortization of deferred loan costs related to costs incurred to obtain an amendment to the debt agreement related to the initial public offering as if the amendment occurred on January 1, 2007.

(4) Pro forma adjustment to eliminate interest and investment income (balance represents joint venture income only).

(5) Adjustment to reflect non-GAAP pro forma income tax expense using an assumed income tax rate of 38% and 28% of U.S. and UK pre-tax income, respectively, as a result of the reorganization of the Company from a limited liability company to a "C" corporation from January 1, 2007.

(6) Represents revenues of RSMC from January 1, 2007 to the acquisition on June 26, 2007.

(7) Pro forma adjustment due to the following: Cost of revenues of RSMC from January 1, 2007 to the acquisition on June 26, 2007 $ 666,272 To eliminate overhead charges allocated to RSMC from its former parent prior to acquisition on June 26, 2007 (8,000) Non-cash accretion expense of decontamination and decommissioning liabilities (1,390) Non-cash compensation expense related to stock options granted to employees on the date of the Company's initial public offering (372) ----------- $ 656,510 ========== (8) Pro forma adjustment due to the following: Selling, general and administrative expenses of RSMC from January 1, 2007 to the acquisition on June 26, 2007 $ 5,070 Advisory fees to equity sponsors prior to termination of advisory services agreements in connection with the Company's initial public offering (2,477) Non-cash equity compensation related to profit interests (2,718) Compensation paid to certain executives in connection with the Company's initial public offering to terminate certain bonus arrangements in accordance with their employment agreements (6,945) Non-cash compensation expense related to stock options granted to employees on the date of the Company's initial public offering (1,261) ----------- $ (8,331) ========== Table 5 (Continued)

The Company defines EBITDA as earnings before interest expense, income taxes, depreciation and amortization. The Company uses EBITDA to facilitate a comparison of its operating performance on a consistent basis from period to period that, when viewed with its GAAP results and the above reconciliation, management believes it provides a more complete understanding of factors and trends affecting its business than GAAP measures alone. EBITDA assists management in comparing its operating performance on a consistent basis because it removes the impact of its capital structure (primarily interest charges), asset base (primarily depreciation and amortization) and items outside the control of its management team (taxes) from its results of operations. EBITDA should not be considered as a substitute for net income or income from operations, as determined in accordance with GAAP. EBITDA is not defined by GAAP, and you should not consider it in isolation or as a substitute for analyzing the Company's results as reported under GAAP.

The Company defines net income before the impact of amortization of intangible assets as net income plus amortization expense of intangible assets, net of the related income tax expense. Net income before the impact of amortization of intangible assets and net income before the impact of amortization of intangible assets per share are not computed in accordance with GAAP. These non-GAAP measures may be useful to investors seeking to compare the operating performance on a consistent basis from period to period that, when viewed with its GAAP results and the above reconciliation, management believes provides a more complete understanding of factors and trends affecting the Company's business than GAAP measures alone. Net income before the impact of amortization of intangible assets and net income before the impact of amortization of intangible assets per share should not be considered as a substitute for net income or net income per share, as determined in accordance with GAAP. Net income before the impact of amortization of intangible assets and net income before the impact of amortization of intangible assets per share are not defined by GAAP, and you should not consider them in isolation or as a substitute for analyzing the Company's results as reported under GAAP.

Table 6

ENERGYSOLUTIONS, INC. REPORTING SEGMENT INFORMATION (UNAUDITED) (Dollars in thousands)

GAAP PRO FORMA ---------------------------------- ----------------- For the Quarter For the Quarter Ended Ended December 31, December 2007 2006 31, 2007 ----------- --------- -----------Revenues Federal Services $ 40,101 $ 28,542 $ 40,101 Commercial Services 39,862 22,976 39,862 LP&D 75,619 81,280 75,619 International 272,278 - 272,278 ----------- --------- -----------Total Revenues $ 427,860 $ 132,798 $ 427,860 =========== ========= ========== Gross Profit and Margin Federal Services $ 8,769 21.9% $ 8,052 28.2% $ 8,769 21.9% Commercial Services 8,122 20.4% 7,373 32.1% 8,213 20.6% LP&D 36,526 48.3% 38,401 47.2% 36,072 47.7% International Operations 8,231 3.0% - 8,472 3.1% ----------- --------- -----------Total Gross Profit $ 61,648 14.4% $ 53,826 40.5% $ 61,526 14.4% =========== ========= ========== Income from Operations and Margin Federal Services $ 6,376 15.9% $ 5,783 20.3% $ 6,518 16.3% Commercial Services 8,704 21.8% 3,327 14.5% 8,838 22.2% LP&D 34,270 45.3% 35,159 43.3% 33,826 44.7% International (194) -0.1% - 88 0.0% ----------- --------- -----------Total Income from Operations before corporate unallocated items 49,156 11.5% 44,269 33.3% 49,270 11.5% Corporate unallocated items (29,513) (23,545) (20,308) ----------- --------- -----------Total Income from Operations $ 19,643 $ 20,724 $ 28,962 =========== ========= ========== GAAP PRO FORMA ---------------------------------- ----------------- For the Year For the Year Ended Ended December 31, December 2007 2006 31, 2007 ----------- --------- ----------- Revenues Federal Services $ 151,355 $ 79,941 $ 151,355 Commercial Services 137,378 54,137 137,378 LP&D 262,801 293,025 262,801 International 541,079 - 1,253,092 ----------- --------- -----------Total Revenues $ 1,092,613 $ 427,103 $ 1,804,626 =========== ========= ========== Gross Profit and Margin Federal Services $ 42,383 28.0% $ 24,820 31.0% $ 42,383 28.0% Commercial Services 27,812 20.2% 14,558 26.9% 27,903 20.3% LP&D 106,510 40.5% 151,858 51.8% 107,940 41.1% International Operations 17,569 3.2% - 71,551 5.7% ----------- --------- -----------Total Gross Profit $ 194,274 17.8% $ 191,236 44.8% $ 249,777 13.8% =========== ========= ========== Income from Operations and Margin Federal Services $ 31,077 20.5% $ 20,634 25.8% $ 31,219 20.6% Commercial Services 20,082 14.6% 7,092 13.1% 20,216 14.7% LP&D 97,991 37.3% 144,251 49.2% 99,431 37.8% International 2,930 0.5% - 51,884 4.1% ----------- --------- -----------Total Income from Operations before corporate unallocated items 152,080 13.9% 171,977 40.3% 202,750 11.2% Corporate unallocated items (80,244) (82,003) (67,080) ----------- --------- -----------Total Income from Operations $ 71,836 $ 89,974 $ 135,670 =========== ========= ========== Table 7

ENERGYSOLUTIONS, INC. RECONCILIATION OF GAAP TO PRO FORMA REPORTING SEGMENT INFORMATION (UNAUDITED) (Dollars in thousands)

For the Quarter Ended December 31, 2007 ------------------------------------------- GAAP Adjustments Pro Forma ----------- ----------- ----------- Revenues Federal Services $ 40,101 $ - $ 40,101 Commercial Services 39,862 - 39,862 LP&D 75,619 - 75,619 International 272,278 - 272,278 ----------- ----------- -----------Total Revenues $ 427,860 $ - $ 427,860 =========== =========== ========== Gross Profit and Margin Federal Services $ 8,769 $ - $ 8,769 Commercial Services 8,122 91 (1) 8,213 LP&D 36,526 (454) (2) 36,072 International Operations 8,231 241 (1) 8,472 ----------- ----------- -----------Total Gross Profit $ 61,648 $ (122) $ 61,526 =========== =========== ========== Income from Operations and Margin Federal Services $ 6,376 $ 142 (1) $ 6,518 Commercial Services 8,704 134 (1) 8,838 LP&D 34,270 (444) (3) 33,826 International (194) 282 (1) 88 ----------- ----------- -----------Total Income from Operations before corporate unallocated items 49,156 114 49,270 Corporate unallocated items (29,513) 9,205 (4) (20,308) ----------- ----------- -----------Total Income from Operations $ 19,643 $ 9,319 $ 28,962 =========== =========== ========== For the Year Ended December 31, 2007 ------------------------------------------- GAAP Adjustments Pro Forma ----------- ------------ ----------- Revenues Federal Services $ 151,355 $ - $ 151,355 Commercial Services 137,378 - 137,378 LP&D 262,801 - 262,801 International 541,079 712,013 (5) 1,253,092 ----------- ------------ -----------Total Revenues $ 1,092,613 $ 712,013 $ 1,804,626 =========== ============ ========== Gross Profit and Margin Federal Services $ 42,383 $ - $ 42,383 Commercial Services 27,812 91 (1) 27,903 LP&D 106,510 1,430 (6) 107,940 International Operations 17,569 53,982 (7) 71,551 ----------- ------------ -----------Total Gross Profit $ 194,274 $ 55,503 $ 249,777 =========== ============ ========== Income from Operations and Margin Federal Services $ 31,077 $ 142 (1) $ 31,219 Commercial Services 20,082 134 (1) 20,216 LP&D 97,991 1,440 (8) 99,431 International 2,930 48,954 (9) 51,884 ----------- ------------ -----------Total Income from Operations before corporate unallocated items 152,080 50,670 202,750 Corporate unallocated items (80,244) 13,164 (10) (67,080) ----------- ------------ -----------Total Income from Operations $ 71,836 $ 63,834 $ 135,670 =========== ============ ========== (1) Pro forma adjustment reflects the add back of non-cash compensation expense related to stock options granted to employees on the date of the Company's initial public offering.

(2) Pro forma adjustment due to the following: Non-cash accretion income of decontamination and decommissioning liabilities $ (494) Non-cash compensation expense related to stock options granted to employees on the date of the Company's initial public offering 40 ----------- $ (454) ========== (3) Pro forma adjustment due to the following: Non-cash accretion income of decontamination and decommissioning liabilities $ (494) Non-cash compensation expense related to stock options granted to employees on the date of the Company's initial public offering 50 ----------- $ (444) ========== (4) Pro forma adjustment due to the following: Advisory fees to equity sponsors prior to termination of advisory services agreements in connection with the Company's initial public offering $ 639 Non-cash equity compensation related to profit interests 597 Compensation paid to certain executives in connection with the Company's initial public offering to terminate certain bonus arrangements in accordance with their employment agreements 6,945 Non-cash compensation expense related to stock options granted to employees on the date of the Company's initial public offering 1,024 ----------- $ 9,205 ========== (5) Represents revenues of RSMC from January 1, 2007 to the acquisition on June 26, 2007.

(6) Pro forma adjustment due to the following: Non-cash accretion expense of decontamination and decommissioning liabilities $ 1,390 Non-cash compensation expense related to stock options granted to employees on the date of the Company's initial public offering 40 ----------- $ 1,430 ========== (7) Pro forma adjustment due to the following: Gross profit of RSMC from January 1, 2007 to the acquisition on June 26, 2007 $ 45,741 To eliminate overhead charges allocated to RSMC from its former parent prior to acquisition on June 26, 2007 8,000 Non-cash compensation expense related to stock options granted to employees on the date of the Company's initial public offering 241 ----------- $ 53,982 ========== (8) Pro forma adjustment due to the following: Non-cash accretion expense of decontamination and decommissioning liabilities $ 1,390 Non-cash compensation expense related to stock options granted to employees on the date of the Company's initial public offering 50 ----------- $ 1,440 ========== (9) Pro forma adjustment due to the following: Income of operations of RSMC from January 1, 2007 to the acquisition on June 26, 2007 $ 40,672 To eliminate overhead charges allocated to RSMC from its former parent prior to acquisition on June 26, 2007 8,000 Non-cash compensation expense related to stock options granted to employees on the date of the Company's initial public offering 282 ----------- $ 48,954 ========== (10) Pro forma adjustment due to the following: Advisory fees to equity sponsors prior to termination of advisory services agreements in connection with the Company's initial public offering $ 2,477 Non-cash equity compensation related to profit interests 2,718 Compensation paid to certain executives in connection with the Company's initial public offering to terminate certain bonus arrangements in accordance with their employment agreements 6,945 Non-cash compensation expense related to stock options granted to employees on the date of the Company's initial public offering 1,024 ----------- $ 13,164 ==========

Contact: For more information, please contact: Tim Barney (801) 649-2233 tbarney@energysolutions.com

2008-03-17 20:22:14 0314434 MARKETWIRE