Republic Services, Inc. (NYSE: RSG) and Allied Waste Industries, Inc. (NYSE: AW) today announced that they have completed their merger to create one of the nation’s leading waste and environmental services providers. The combined company, which will be based in Phoenix, is named Republic Services, Inc. and trades under the ticker symbol “RSG” on The New York Stock Exchange. As of the close of market on December 5, Allied Waste stock will be delisted and will no longer trade on the NYSE.

The merger creates a company with expected pro forma annual revenue of approximately $9 billion and a total market capitalization of approximately $8 billion. The combined company has more than 35,000 employees serving more than 13 million customers in 40 states and Puerto Rico. The company is expected to generate more than $150 million in pre-tax annual synergies by 2011.

“Today marks an exciting new beginning for Republic Services and the entire environmental services industry,” said Jim O’Connor, Chairman and Chief Executive Officer of Republic Services. “We are looking forward to combining the best practices, complementary assets and experienced executives from two great companies to enhance our leadership position. This is an outstanding opportunity for us to better serve our customers, provide enhanced opportunities to our employees and create shareholder value.”

Don Slager, President and Chief Operating Officer of Republic Services and former President and Chief Operating Officer of Allied, added, “We have the strategy, people and resources in place to rapidly realize the value of the transaction for customers, shareholders and employees. Our integration teams have worked very hard to prepare for this day, and we have thorough plans in place to ensure our customers and employees experience a seamless transition.”

Transaction Terms

Under the terms of the agreement, Allied shareholders will receive 0.45 shares of Republic common stock for each share of Allied common stock held. Republic is issuing approximately 196 million shares of common stock to Allied shareholders, representing approximately 52% ownership of the combined company. In connection with the transaction, Republic has put in place a new unsecured senior credit facility. The existing senior notes of both Republic and Allied will remain outstanding. Republic's unsecured corporate credit and all of the senior notes have been assigned investment grade ratings.

James E. O’Connor continues as Chairman and Chief Executive Officer of the combined company, while Don Slager has become President and Chief Operating Officer.