Republic Services and Allied Waste Complete Merger Integration Planning

  
    
  
  
    
      Republic Services, Inc. (NYSE: RSG) and Allied Waste Industries, Inc. 
      (NYSE: AW) today announced that their joint integration planning team 
      has substantially completed extensive integration planning related to 
      their merger to ensure a seamless combination for employees, 
      shareholders and customers. The companies are poised to implement their 
      plans to complete the merger in the fourth quarter of 2008. The 
      companies are highly confident that they will meet the projected $150 
      million of merger synergies in the third year following completion of 
      the transaction.
    
    
      “As we move through the planning process and 
      get closer to the completion of this merger, we are very confident that 
      we will be able to achieve value for our shareholders by building on 
      both companies’ foundations of profitable 
      growth,” said Jim O’Connor, 
      Chairman and Chief Executive Officer of Republic Services. “Our 
      strategic focus remains on realizing merger savings, improving return on 
      invested capital, reducing debt and generating higher levels of free 
      cash flow as we work towards positioning the new Republic to provide 
      better opportunities for employees, significant operating efficiencies, 
      unmatched customer service and long-term shareholder value.”
    
    
      Republic Services and Allied Waste began the integration planning 
      process immediately after the announcement of their definitive merger 
      agreement by forming 17 functional and cross-functional teams of 
      corporate, regional and local representatives from both companies. Over 
      the past three months, these teams have invested more than 12,000 
      man-hours in planning for the smooth and successful merger of Republic 
      and Allied. A large part of the planning process included the review and 
      selection of the operating systems that will be used by the combined 
      company. Additionally, the companies have named the top 70 executives 
      and managers of the combined company.
    
    
      “Our integration teams have worked hard to 
      complete the integration planning process to prepare our joint 
      leadership team to enhance Republic’s position 
      in the U.S. environmental services industry,” 
      said Don Slager, President and Chief Operating Officer of Allied. “The 
      bottom line is that we are certain that we have the right people and the 
      right plan to execute a smooth transition that creates value for our 
      shareholders and enhanced career opportunities for our employees. With 
      the ‘day-one’ 
      merger plans in place, our integration teams are now focusing on 
      developing the plans for the first few months of the merger to ensure a 
      smooth transition and integration.”
    
    
      The companies also announced that the U.S. Securities and Exchange 
      Commission has declared effective the Registration Statement on Form S-4 
      relating to the proposed merger of Republic Services and Allied Waste. 
      Both companies have established November 14 as the date of their special 
      stockholder meetings, and they have begun to mail a definitive joint 
      proxy statement to stockholders of record as of the October 6, 2008 
      record date for the meetings.
    
    
      Republic will hold its special stockholder meeting on November 14, 2008, 
      at 1:30 p.m., Eastern Time, in the Atrium on the 7th Floor of 110 S.E. 
      6th Street, Fort Lauderdale, Florida 33301. Allied will hold its special 
      stockholder meeting on November 14, 2008 at 11:30 a.m., Mountain Time, 
      at the Marriott at McDowell Mountains, 16770 North Perimeter Drive, 
      Scottsdale, Arizona 85260.
    
    
      The Republic board of directors unanimously recommends that Republic 
      stockholders vote “FOR” 
      the Republic share issuance in connection with the merger. The Allied 
      board of directors unanimously recommends that Allied stockholders vote “FOR” 
      the adoption of the merger agreement. The merger is subject to the 
      approvals of the respective stockholders of both companies. The boards 
      of directors of Republic and Allied believe that the combination of the 
      two companies will create substantially more long-term stockholder value 
      than either company could individually achieve. Following the completion 
      of the merger, Allied will be a wholly owned subsidiary of Republic with 
      Allied stockholders receiving approximately 51.7% of the outstanding 
      common stock of the combined company in respect of their Allied shares 
      and Republic stockholders retaining approximately 48.3% of the 
      outstanding common stock of the combined company, in each case, on a 
      diluted basis.
    
    
      As previously announced, Republic successfully completed its $1.75 
      billion senior unsecured revolving credit facility arranged by Bank of 
      America Securities LLC and J.P. Morgan Securities Inc. In addition, it 
      entered into an amendment to its existing $1.0 billion senior unsecured 
      revolving credit facility to conform certain terms of its existing 
      credit facility with those of the new credit facility as of the closing 
      of Republic's proposed merger with Allied. After merger closing, the 
      combined bank facility capacity of the company will be $2.75 billion.
    
    
      The new credit facility, together with Republic’s 
      existing credit facility, will provide Republic with all of the 
      financing expected to be needed to consummate its proposed merger with 
      Allied, as well as with additional working capital. The initial funding 
      under the new credit facility is expected to occur upon closing of the 
      proposed merger. Standard & Poor’s 
      Ratings Services and Moody’s Investors 
      Services have both indicated that they expect the pro forma rating of 
      the combined company to be investment grade.
    
    
      About Republic Services, Inc.
    
    
      Republic Services, Inc. is a leading provider of environmental services 
      including solid waste collection, transfer and disposal services in the 
      United States. The company’s operating units 
      are focused on providing solid waste services for commercial, 
      industrial, municipal and residential customers.
    
    
      About Allied Waste Industries, Inc.
    
    
      Allied Waste is America's second largest non-hazardous solid waste 
      services company and an environmental leader. Headquartered in Phoenix, 
      AZ, Allied Waste provides waste collection, transfer, recycling and 
      disposal services to millions of residential, commercial and industrial 
      customers in over 100 major markets spanning 38 states and Puerto Rico. 
      Allied's team of more than 22,000 dedicated employees operates within a 
      highly efficient, integrated organization that generated 2007 revenue of 
      $6.1 billion.
    
    
      Additional Information and Where to Find It
    
    
      This communication is being made in respect of the proposed business 
      combination involving Republic and Allied. Republic has filed with the 
      Securities and Exchange Commission a Registration Statement on Form S-4 
      (Reg. No. 333-152693) containing a Joint Preliminary Proxy 
      Statement/Prospectus in connection with the proposed transaction with 
      Allied. The definitive Joint Proxy Statement/Prospectus will be mailed 
      on or about October 14, 2008 to stockholders of Republic and Allied of 
      record as of the close of business on October 6, 2008. INVESTORS AND 
      SECURITY HOLDERS OF REPUBLIC AND ALLIED ARE URGED TO READ THE JOINT 
      PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC 
      CAREFULLY IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT INFORMATION 
      ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be 
      able to obtain free copies of the Registration Statement and the 
      definitive Joint Proxy Statement/Prospectus and other documents filed 
      with the SEC by Republic and Allied through the website maintained by 
      the SEC at www.sec.gov. 
      Free copies of the Registration Statement and the definitive Joint Proxy 
      Statement/Prospectus and other documents filed with the SEC can also be 
      obtained by directing a request to Republic Services, Inc., 110 SE 6th 
      Street, 28th Floor, Fort Lauderdale, Florida, 33301 Attention: Investor 
      Relations or by directing a request to Allied Waste Industries, Inc., 
      18500 North Allied Way, Phoenix, Arizona 85054, Attention: Investor 
      Relations.
    
    
      Information Regarding Forward-Looking Statements
    
    
      Certain statements and information included herein constitute “forward-looking 
      statements” within the meaning of the Federal 
      Private Securities Litigation Reform Act of 1995. These forward-looking 
      statements are identified by words such as “will,” 
      “expects,” “intends,” 
      and similar words. Any such forward-looking statements contained herein 
      are based on current expectations, but are subject to a number of risks, 
      uncertainties, and other factors that may cause actual results to differ 
      materially from expectations expressed in such forward-looking 
      statements, many of which are beyond the control of Republic and Allied. 
      Such risks, uncertainties and other factors include: regulatory and 
      litigation matters and risks, legislative developments, changes in tax 
      and other laws, the effect of changes in general economic conditions, 
      the risk that a condition to funding under Republic's the new credit 
      facility may not be satisfied, the risk that a regulatory approval that 
      may be required for the merger is not obtained or is obtained subject to 
      conditions that are not anticipated and other risks to consummation of 
      the merger and the risk that the merger, if completed, may not create 
      long-term value for stockholders as expected. Stockholders, potential 
      investors and other readers are urged to consider these factors 
      carefully in evaluating our forward-looking statements and are cautioned 
      not to place undue reliance on forward-looking statements. Risk factors 
      are discussed in the definitive Joint Proxy Statement/Prospectus filed 
      with the SEC. The forward-looking statements made herein are only made 
      as of the date of this press release and the parties hereto undertake no 
      obligation to publicly update these forward-looking statements to 
      reflect subsequent events or circumstances.