TRC Awarded $15.7 Million Exit Strategy Contract

    Business Editors/Environment Writers

    WINDSOR, Conn.--(BUSINESS WIRE)--Jan. 5, 2005--TRC (NYSE:TRR) announced today that it signed an Exit Strategy contract valued at $15.7 million with Tecumseh Products Company (NASDAQ:TECUA)(NASDAQ:TECUB) to assume responsibility for the environmental closure of the Hayton Area Remediation Project located in New Holstein, Wisconsin.
    In this transaction, TRC assumed the guaranteed fixed price liability for the cleanup of PCB sediments which may have originated from the Tecumseh Products Company New Holstein, Wisconsin plant site and culminated at a 30 acre pond located a few miles downstream from the facility. TRC is tasked with completing the investigation, design, remedial implementation, and monitoring obligations for the project. TRC is also a party to a Consent Order with the Wisconsin Department of Natural Resources, the primary environmental oversight agency for the cleanup, which recognizes TRC's responsibility to complete the required work.
    A comprehensive insurance and risk management program for the project has been structured with AIG Environmental, a member company of American International Group, by The Hylant Group. This program, with a combined policy limit of $41 million, protects against known and unknown environmental issues at the sites for a period of 20 years, substantially longer than the anticipated duration of the project.
    "The TRC Exit Strategy program, in conjunction with the associated environmental insurance program, provided the degree of financial certainty we needed to best resolve our environmental compliance obligations for this project," said James S. Nicholson, VP, Treasurer and CFO, Tecumseh Products Company. "This program is consistent with our desire to be environmentally responsible in that it funds a comprehensive solution and aids in the orderly resolution of the cleanup."
    "This transaction reveals our continuing commitment to resolve the complex environmental obligations of our clients," said Mike Salmon, TRC Senior Vice President. "The HARP project assigns to us the regulatory compliance requirements that have concerned Tecumseh for several years in the past, and would have continued for several years into the future. From this point forward, we will substitute for our client in the role of completing the regulatory requirements for the affected area."

    About TRC Companies, Inc.

    Named one of FORTUNE Magazine's 100 Fastest Growing Companies in 2003, Forbes Top 200 Best Small Companies and Business Week's Top 100 Hot Growth Companies, TRC is a customer-focused company that creates and implements sophisticated and innovative solutions to the challenges facing America's environmental, infrastructure, power, and transportation markets. The Company is also a leading provider of technical, financial, risk management, and construction services to both industry and government customers across the country. For more information, visit TRC's website at www.TRCsolutions.com.

    Forward-Looking Statements

    Certain statements in this press release may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify these statements by forward-looking words such as "may," "expects," "plans," "anticipates," "believes," "estimates," or other words of similar import. You should consider statements that contain these words carefully because they discuss our future expectations, contain projections of our future results of operations or of our financial condition, or state other "forward-looking" information. We believe that it is important to communicate our future expectations to our investors. However, there may be events in the future that we are not able to accurately predict or control and that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, and actual results may differ materially from those discussed as a result of various factors, including, but not limited to, the availability and adequacy of insurance, the uncertainty of our operational and growth strategies, the challenges inherent in integrating newly acquired businesses, regulatory uncertainty, the availability of funding for government projects, the level of demand for the Company's services, product acceptance, industry-wide competitive factors, the ability to continue to attract and retain highly skilled and qualified personnel, and political, economic, or other conditions. Furthermore, market trends are subject to changes, which could adversely affect future results. See additional discussion in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2004, and other factors detailed from time to time in the Company's other filings with the Securities and Exchange Commission.

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CONTACT: TRC Dick Ellison, 949-727-7390 dellison@trcsolutions.com Mike Salmon, 949-727-7350 or Investor Contact: Berkman Associates, 310-277-5162 info@BerkmanAssociates.com

KEYWORD: CONNECTICUT WISCONSIN INDUSTRY KEYWORD: ENVIRONMENT REAL ESTATE BUILDING/CONSTRUCTION MARKETING AGREEMENTS SOURCE: TRC

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