Cycle Systems Acquires Emswiler Diesel, Inc.

NEWS RELEASE

CYCLE SYSTEMS ACQUIRES EMSWILER DIESEL, INC.
South Boston facility enhances supply of scrap metal for processing

ROANOKE, Va. (July 26, 2007) — Cycle Systems, one of the region’s largest recyclers, today announced it has acquired Emswiler Diesel Inc., a scrap metal processor in South Boston. The facility will operate as Cycle Systems effective Aug. 1.

The purchase will enable Cycle Systems to collect additional scrap metal to feed its metal shredding and shearing operations in Roanoke and Lynchburg while boosting production of processed scrap metal, which the company sells to steel mills in the region.

Terms of the deal were not disclosed. On Aug. 1, Emswiler Diesel will transfer to the Cycle Systems brand, including 10 employees.

“This acquisition provides an outstanding source of quality scrap metal for Cycle Systems, ensuring additional volume for our processing facilities at a time when the value of scrap metal remains high,” said Neal Brenner, vice president of Cycle Systems. “We welcome an additional facility in Southside Virginia to provide our customers with a convenient location to drop off scrap metal for an environmentally friendly way to turn scrap into high-quality steel.”

Brenner said Cycle Systems plans to grow in South Boston to meet expected demand.

Some of the metal collected in South Boston will be brought to Cycle Systems in Lynchburg, where a shredder that runs in part on renewable fuels such as biodiesel can crush old cars and refrigerators into fist-size pieces at a rate of 60 tons per hour.

ABOUT CYCLE SYSTEMS
Founded in 1916, Cycle Systems operates seven locations in central, Southside and southwestern Virginia: Harrisonburg, Lynchburg, Martinsville, Pulaski, Roanoke, South Boston and Waynesboro. To learn more, visit www.cyclesystems.com.
###

For more information, contact:
Thomas Becher
tba: Thomas Becher Agency, Inc.
(540) 772-3942
tbecher@tbtheagency.com