April 6, 2010

Statement of Layne Baroldi, Synagro’s director of regulatory affairs and

technical services, in response to a question about whether the
company’s connections to a corruption scandal in Detroit should impact
its business with New York City:

“Synagro does not believe this isolated incident involving individuals

acting are reflective of the Company, nor the City of Detroit and, alone,
should not affect Synagro’s ability to do business with a municipality.
Synagro learned in June of 2008 that the United States Attorney’s
Office, in conjunction with a wide-spread investigation into corruption in
Detroit, was investigating whether the award of a contract to the
Company was influenced by the payment of improper payments to City
officials. Immediately upon learning of the investigation, Synagro began,
and continues, to fully cooperate with the FBI and the federal
prosecutor and the Company understands that no Synagro company,
nor any other current or former employee or officer of any Synagro
company is a target of this or any other investigation.

“It should also be noted that Synagro and its affiliated companies submit
approximately 600 bids per year for each of the past 30 years on
municipal and private projects. Never, in any of those approximately
18,000 bids, has the Company or any affiliate had any material issue
raised in connection with business integrity.

“The Synagro companies and all Synagro employees take their ethical
and legal obligations very seriously. The Core Values of the company
reflect a commitment of our employees and all those acting on behalf of
the company will manage our business with integrity, choosing to focus
on excellent service, environmental stewardship, and the highest ethical
standards, while embracing the collaborative power of partnerships and
teamwork to pursue leading edge innovations for sustainable solutions.
We have used the events surrounding the 2007 procurement to re-
enforce our commitment to these Core Values.

“Immediately upon learning of a potential impropriety in Detroit, the

company undertook aggressive measures to review all standards and
policies relating to ethics. In support of this commitment, the Company
has created the new position of Chief Compliance Officer to help
reassure us and our customers in our joint commitment to a high ethical
standard in business dealings. The corporate management and staff of
Synagro believes the company and its affiliates have emerged stronger
than ever, with improved reporting practices, oversight and training.”