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Republic Services, Inc. Reports A 29 Percent Increase In Pro Forma Earnings Per Share in Fourth Quarter

Jan. 28, 1999

FORT LAUDERDALE, Fla., Jan. 28 /PRNewswire/ -- Republic Services, Inc. (NYSE: RSG) today reported that for the three months ended December 31, 1998, pro forma earnings increased 28.6 percent to $0.27 per share from $0.21 per share for the comparable period last year. For 1998, pro forma earnings per share increased 36.5 percent to $1.01 per share from $0.74 per share in 1997.

Revenue for the three months ended December 31, 1998 increased 28.7 percent to $377.4 million from $293.2 million for the same period in 1997. Revenue for 1998 increased 21.4 percent to $1,369.1 billion from $1,127.7 billion in 1997.

Operating income for the fourth quarter of 1998 increased 39.4 percent to $79.3 million, compared to $56.9 million for the same quarter last year. Operating income for 1998 was $284.3 million, up 41.2 percent compared to $201.3 million in 1997.

Operating margins expanded to 21.0 percent compared to 19.4 percent in the comparable quarter in 1997. In 1998, operating margins rose to 20.8 percent, compared to 17.9 percent in 1997.

During the fourth quarter, James E. (Jim) O'Connor joined Republic Services as Chief Executive Officer, adding to the Company's already strong team of experienced industry veterans. According to H. Wayne Huizenga, Chairman of Republic Services, "Jim has an outstanding record of achievement in the waste services industry. His experience and leadership skills will help guide Republic Services to even greater prosperity. Jim also has the advantage of working with Republic Services' President and Chief Operating Officer Jim Cosman and the excellent team he has developed across the nation."

Commenting on the Company's performance in the fourth quarter and for the year, Mr. O'Connor said, "Our strong financial performance is indicative of the efforts made by our employees on behalf of our customers and the Company. The significant increases in revenue, operating income and margins are attributable to strong internal growth and a series of strategic acquisitions that strengthened Republic Services in key markets and provided the opportunity to enter new areas.

"During the quarter, the Company acquired six landfills, seven transfer stations and 136 commercial collection routes from Waste Management, Inc.," noted Mr. O'Connor. "We anticipate completing the balance of this transaction in the first quarter of 1999."

Republic Services, Inc. is one of the leading providers of non-hazardous solid waste collection and disposal services in the United States. The Company's various operating units provide solid waste collection services for commercial, industrial, municipal and residential customers. Republic Industries, Inc. (NYSE: RII) owns approximately 63.9 percent of the outstanding shares of Republic Services, Inc.

Certain statements and information included in this release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Additional discussion of factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is contained in the Company's SEC filings.

                           REPUBLIC SERVICES, INC.
     Pro Forma Unaudited Condensed Consolidated Statements of Operations
                     (In millions, except per share data)

                           Three Months Ended       Twelve Months Ended
                                December 31,            December 31,
                             1998       1997         1998         1997
    Revenue                $377.4     $293.2     $1,369.1     $1,127.7

    Expenses:
     Cost of operations     231.1      184.2        842.7        723.0
     Depreciation and
       amortization          29.8       21.8        106.3         86.1

     Selling, general and
       administrative        33.5       27.3        120.8        107.1
     Parent overhead
       allocations            3.7        3.0         15.0         10.2

    Operating income         79.3       56.9        284.3        201.3

    Interest expense, net    (3.8)       0.6         (5.9)        (0.8)
    Other income (expense)   (1.2)       1.3         (0.9)         1.8

    Income from continuing
      operations before
      income taxes           74.3       58.8        277.5        202.3

    Provision for income
      taxes                  26.7       21.4         99.9         73.4

     Net income             $47.6      $37.4       $177.6       $128.9

     Basic and diluted earnings
        per share           $0.27      $0.21        $1.01        $0.74

     Weighted average common
        shares              175.4      175.4        175.4        175.4

    Note: These Pro Forma Statements of Operations have been prepared assuming
          the Company's initial public offering and the repayment in full of
          amounts due to Republic Industries, Inc. had occurred as of the
          beginning of each period presented.

                           REPUBLIC SERVICES, INC.
          Unaudited Condensed Consolidated Statements of Operations
                     (In millions, except per share data)

                           Three Months Ended     Twelve Months Ended
                               December 31,            December 31,
                            1998       1997         1998         1997
     Revenue              $377.4     $293.2     $1,369.1     $1,127.7
     Expenses:
      Cost of operations   231.1      184.2        842.7        723.0
      Depreciation and
       amortization         29.8       21.8        106.3         86.1
      Selling, general and
       administrative       33.5       27.3        120.8        107.1
      Parent overhead
       allocations           3.7        3.0         15.0         10.2

    Operating income        79.3       56.9        284.3        201.3

    Interest expense, net   (3.8)      (4.0)       (43.2)       (21.0)
    Other income (expense)  (1.2)       1.3         (0.9)         1.8

    Income from continuing
      operations before
      income taxes          74.3       54.2        240.2        182.1

    Provision for
      income taxes          26.7       19.6         86.5         65.9

    Net income             $47.6      $34.6       $153.7       $116.2

    Note:  Historical net income per share has not been presented because it
           would not be meaningful. Prior to the Company's initial public
           offering in July 1998, all of the Company's common stock was owned
           by Republic Industries, Inc.
SOURCE Republic Services, Inc.
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