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Safety-Kleen Expands into China

Date: November 6, 2007

Source: Safety-Kleen Systems, Inc.

Safety-Kleen Expands Operations into China, Opens Shanghai Office Focused on Manufacturing, Environmental Services

Safety-Kleen Systems, Inc., has expanded its operations into China, opening its first mainland office on Oct. 10, 2007, in the Shanghai World Trade Tower.

"We're very excited about establishing a long-term presence in China, and the Shanghai office marks the beginning of that effort," said Safety-Kleen CEO and President Frederick J. Florjancic. "During the past year, we've been very pleased with the high-quality equipment we have been able to have manufactured in China, and we plan to make Shanghai the hub of our China sourcing operations."

Florjancic said Safety-Kleen International Asia Investment Co., Ltd., will be led by Henry Chan, an experienced strategic sourcing and supply chain management expert, and will initially focus on rapidly accelerating the company's efforts to manufacture equipment and parts in China. Safety-Kleen will also seek to identify potential strategic partners as it evaluates opportunities for expanding its environmental services business in China.

Safety-Kleen, a privately held company, is the leading oil recycling and re-refining, parts cleaner and industrial waste management services company in North America, and currently has licensee operations in Japan, South Korea, Thailand and Israel. The company has also signed an agreement for licensee expansion in Vietnam, which will begin in 2008.

"As many of our existing customers expand their operations globally, and especially in Asia, they are increasingly asking us to provide them the same kind of world-class environmental services they now receive in North America," said Safety-Kleen Senior Vice President Mike Fraser. "With today's international focus on environmental protection and product stewardship, smart, sustainable businesses want to be sure they have a reliable and proven partner like Safety-Kleen to help them meet their environmental service needs, regardless of where those needs arise."

While in China, Florjancic and other Safety-Kleen executives also met with Central, Provincial and local government leaders, as well as with other executives in the petrochemical and environmental services industries.

"We are looking forward to expanding our staff and our operations in China," said Chan, Safety-Kleen's Managing Director for China. "With its skilled workforce and vast range of international companies, we believe China represents a dual opportunity -- we can lower our costs for acquiring high-quality equipment, and provide businesses in China with the very best environmental solutions for their used oil, parts cleaning and hazardous waste management needs."

About Safety-Kleen

Safety-Kleen, a privately held company, is the leading oil recycling and re-refining, parts cleaner and industrial waste management services company in North America, with approximately 4,500 employees serving hundreds of thousands of customers in the United States, Canada and Puerto Rico. For more general information, please visit www.safety-kleen.com.

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