Primary Energy Recycling Corporation Updates Status of Distribution Declaration

    OAK BROOK, IL, Oct. 11 /CNW/ - Primary Energy Recycling Corporation
(TSX: PRI.UN) (the "Company") provided an update to its news release of
September 21, 2007 which announced the board's decision to defer declaration
of September's cash distribution due to uncertainty regarding third quarter
results and the impact of any inventory adjustment at the Harbor Coal
facility. While preliminary indications for third quarter results are
positive, the final determination of those results and compliance with senior
debt and subordinated note indenture covenants depends on finalizing any
Harbor Coal inventory adjustment that may be applicable in the quarter. The
timing for finalizing the inventory results for the third quarter, which is
not in the Company's control, could still be several weeks away. Due to the
recent volatility of inventory results over the last year the Company believes
waiting for accurate inventory results is in the best interest of all. Once
inventory results are known, the third quarter financial statements will be
finalized. This uncertainty continues to preclude the Board from making a
declaration of distributions for September 2007, payable October 2007. "The
Board is concerned by the lack of information that forces the delay of
decisions about distribution declarations. It is our strong desire to pay
distributions on a timely basis. We remain hopeful that the Harbor Coal
negotiations will produce a favorable resolution to many of these problems in
the longer term" said Michel Lavigne, Chair of the Board.
    It is likely that the decision about the declaration of October's cash
distribution, payable in November, could be delayed due to the timing of when
final inventory results for the third quarter are provided to the Company. The
company will be providing further updates regarding the status of September
and October distributions when third quarter financial results are known.
    Negotiations with the customer of the Harbor Coal facility to amend
certain terms of the contract are ongoing and the Company continues to believe
that a favorable agreement can be achieved. "Although the terms have not been
finalized, progress has been made over the last two weeks. Both parties
continue to focus on simplified terms that would improve the predictability
and stability of financial results" said John Prunkl, President of the Manager
of the Company, Primary Energy Ventures LLC.
    The Issuer 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 Ventures, (630) 371-0639,

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