General Environmental Management, Inc. announced today before the opening bell that it has completed the acquisition of Santa Clara Waste Water (SCWW), a profitable, 50 year old, full service environmental services company focused primarily on the waste water treatment business. To date, SCWW has treated more than 2 billion gallons of waste water and is recognized as one of the top 100 privately owned non-hazardous waste water utilities in the United States.

GEM financed the acquisition through the issuance of six promissory notes in the aggregate principal amount of $9,003,000, along with warrants for the principals of SCWW to purchase 425,000 shares of GEM’s common stock. The notes bear interest at 6.5 percent per annum. Two of the Notes, totaling $3,778,000, are convertible into a total of 15% of GEM’s common stock on a fully diluted basis. Details of the notes can

General Environmental Management Inc. is in the midst of a process to switch the focus of its business from hazardous waste field services to the fast growing water treatment and waste-to-energy markets. The company believes that shareholder interest will be better served in the long term by this move into faster-growing, more profitable markets.

The opportunity in the marketplace is definitely there. Within the United States alone, the water industry is a $120 billion market that is expected to grow at a 6%-7% rate over the next year. On a global basis, the industry size exceeds $400 billion annually and is growing at a much higher rate than the United States as the emerging world continues to build out its infrastructure. The global waste-to-energy market is a smaller market, but it is still a $20 billion market with a high growth rate.

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Recently the board of directors of General Environmental Management Inc. decided to shift the company’s business focus from hazardous waste field services to the higher-margin and faster-growing water treatment and waste-to-energy markets, while also reducing the company’s debt.

General Environmental believes it has one of the best managed and operated field services businesses in the country. This business has handled waste streams from some of the biggest companies in the country. The company is now focused on how to maximize the value of that business while it builds its high margin water treatment business and explores opportunities in the waste-to-energy technology market.

The company is making rapid strides toward transforming their business. A few weeks ago, California-based General Environmental announced that it had signed a binding letter of intent to acquire Santa Clara Waste Water. The deal is expected to close on or

This morning, General Environmental Management, Inc. updated the investment community with the progress made since its Board of Directors elected to shift the company’s business focus from hazardous waste field services to the fast growing water treatment and waste-to-energy markets.

“We are pleased to report that we have made tremendous progress in the execution of our plan to move the company into the water treatment and waste-to-energy markets,” stated Tim Koziol, GEM’s Chief Executive Officer. “As we announced last week, we swiftly moved to sign a binding letter of intent to acquire Santa Clara Waste Water (SCWW). We are conducting final due diligence and plan on closing this transaction on or before November 1, 2009. SCWW will be the cornerstone of our water treatment business. With this profitable business and the addition of GEM’s sales, marketing, operational and regulatory expertise, we believe

General Environmental Management, Inc. (GEM) announced this morning that it has signed a definitive letter of intent to acquire Santa Clara Waste Water (SCWW), a profitable, 50 year old wastewater treatment business. Earning the reputation of being one of the top 100 privately owned non-hazardous wastewater utilities in the U.S., SCWW has treated more than 2 billion gallons of wastewater.

“We are thrilled to have come to an agreement to acquire SCWW and are eager to work with them to achieve their goal of becoming the premier independent non-hazardous wastewater management company; first in California, then the western region and eventually in the United States,” stated Tim Koziol, GEM Chief Executive Officer. “We are acquiring not only a long time successful company with a great track record and valuable assets, but are partnering with one of the finest management teams in the