Studsvik AB (STO:SVIK) First Contract Signed With FPL For New U.S. Waste Model

Studsvik AB (STO:SVIK) Studsvik has signed a long term contract with FPL Group for the treatment of medium-level (Class B/C) waste at the facility in Erwin. This is the first contract for waste treatment that has been signed under Studsvik's new model for medium-level waste in the USA.

"The strong interest that we see from customers for this new model has convinced me that we will operate the waste treatment facility in Erwin profitably from 2009 and onwards," says Studsvik's CEO Magnus Groth. "The model offers a solution to a major problem for the American nuclear power industry. Our initiative means that customers now have a competitive and environmentally sound alternative for their medium-level waste."

Contract negotiations according to this model are under way with several customers. Studsvik will re-start the Erwin facility for waste treatment in December when it starts receiving waste from FPL Group under the new contract.

The contract with FPL Group lasts through 2013. FPL Group operates 8 commercial nuclear power reactors, and with annual revenues of more than $15 billion and a presence in 27 states is one of the largest providers of electricity-related services in the United States.

Studsvik launched its new business model for the treatment of medium-level waste in the USA after obtaining necessary licenses in October. In the model, Studsvik will treat the waste at the Erwin facility in the same way as before and thereafter take responsibility for storage and final disposal, for which a storage agreement has been reached with Waste Control Specialists (WCS) in Texas.

"Our relationship with WCS is essential," states Lewis Johnson, President of Studsvik Inc. "The ability of our two companies to come together to provide this solution for the nuclear industry ensures a continuous waste management path to our customers."

Studsvik has been treating and reducing the volume of medium-level wet waste from the American nuclear power industry, mainly ion exchange resins, since the early 2000s. After treatment, the residual products were previously sent for final disposal to the Barnwell disposal facility in South Carolina. Since July this facility only accepts waste from three of the United States' 50 states, leaving most of the American nuclear power industry without access to final disposal of medium-level waste.

For further information please contact:

Magnus Groth, President and Chief Executive Officer, tel +46 155 22 10 86 or cell +46 709 67 70 86 Lewis Johnson, President of Studsvik Inc., tel + 1 404 497 4911 or cell + 1 678 549 8958

Facts about Studsvik Studsvik offers a range of advanced technical services to the international nuclear power industry in such areas as waste treatment, decommissioning, engineering & services, and operating efficiency. The company has 60 years experience of nuclear technology and radiological services. Studsvik is a leading supplier on a rapidly expanding market. The business is conducted through five segments: Sweden, United Kingdom, Germany, USA and Global Services. Studsvik has 1 200 employees in 8 countries and the company's shares are listed on NASDAQ OMX Stockholm.

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.



LINK: http://hugin.info/131689/R/1274480/283453.pdf

Studsvik AB

http://www.studsvik.se/

ISIN: SE0000653230

Stock Identifier: XOME.SVIK