Primary Energy Recycling Corporation Announces Decision to Not Extend Revolving Loan Provisions of Credit Agreement

    OAK BROOK, IL, Aug. 25 /CNW/ - Primary Energy Recycling Corporation (TSX:
PRI.UN) (the "Company") announced today that after evaluating the Company's
liquidity position, it has determined that its current cash on hand of
$14.4 million (at July 31, 2008) plus anticipated proceeds from operations are
expected to be adequate to fund near term business operations and
distributions. As a result, it has let the $15 million Revolving Loan
provisions of its Credit Agreement (the "Revolver") expire. The Revolver had
not been drawn for operational liquidity during its three year term. Even if
extended, the Revolver would expire when the senior debt is refinanced, which
could occur in early 2009. The cost to extend the Revolver for such a
relatively short period was not warranted.
    The Company owns a majority interest in Primary Energy Recycling Holdings
LLC ("Primary Energy"). Primary Energy, headquartered in Oak Brook, Illinois,
indirectly owns and operates four recycled energy projects and a 50% interest
in a pulverized coal facility (collectively, the "Projects"). The Projects
have a combined electrical generating capacity of 283 megawatts and a combined
steam generating capacity of 1.8 MMlbs/hour. Primary Energy creates value for
its customers by capturing and recycling waste energy from industrial and
electric generation processes and converting it into reliable and economical
electricity and thermal energy for its customers' use. For more information,
please visit us at

    Forward-Looking Statements
    When used in this news release, the words "anticipate", "expect",
"project", "believe", "estimate", "forecast" and similar expressions are
intended to identify forward-looking statements. Such statements are subject
to certain risks, uncertainties and assumptions pertaining, but not limited,
to operating performance, regulatory parameters, weather and economic
conditions and the factors discussed in the Company's public filings available
on SEDAR at These forward-looking statements are made as of the
date of this press release and the Company assumes no obligation to update or
revise them to reflect new events or circumstances.

For further information:

For further information: V. Michael Alverson, Chief Financial Officer,
Primary Energy, (630) 371-0639,

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