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Letter to the Editor

Safety-Kleen's Year 2000 Financial Statements Show $833 Million Loss

COLUMBIA, S.C. -- Safety-Kleen Corp. has announced that it has filed with the Securities and Exchange Commission consolidated financial statements for fiscal year 2000, and restated consolidated financial statements for fiscal years 1997 - 1999. The statements reflect an overall reduction in previously reported earnings of approximately $534 million for fiscal years 1997 - 1999, and a loss of approximately $833 million in fiscal year 2000.

Safety-Kleen announced in March 2000 that it had discovered accounting irregularities in some previously filed financial statements, which led to the withdrawal by its former independent public accountant, PricewaterhouseCoopers LLP, of its reports on Safety-Kleen's consolidated financial statements for fiscal years 1997 - 1999. The Company filed for protection under Chapter 11 of the U.S. Bankruptcy Code on June 9, 2000 (District of Delaware Case No. 00-2303).

Since that time, the Company has undertaken a comprehensive internal review of the prior reported financial results and accounting practices for those years, and Arthur Andersen LLP, the Company's new independent public accountant, has audited the results of that review and the Company's fiscal year 2000 financial statements.

"It is unfortunate that the accounting irregularities occurred, and we deeply regret the negative impact this has had on so many people," said Safety-Kleen Chairman and Chief Executive Officer David E. Thomas, Jr. "Our new management team has worked hard during the past year to re-establish the confidence of our customers, vendors, regulators and employees."

"Looking forward," Thomas said, "we expect Safety-Kleen to remain a viable commercial enterprise. We have sufficient credit and cash on hand to meet current operating, capital and environmental liability requirements, and we will negotiate additional financing if required. Our employees remain loyal and dedicated to providing high-quality service and, as a result, we have kept our industry-leading customer base and market share."

Thomas also noted that the Company has installed a new senior management team, and that team has begun upgrading Safety-Kleen's information systems, strengthening the Company's internal controls in order to maintain tight standards over operations and service levels, and putting in place controls and procedures to ensure the integrity of its financial data in the future.

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