General Environmental Management Inc. is in the midst of a process to switch the focus of its business from hazardous waste field services to the fast growing water treatment and waste-to-energy markets. The company believes that shareholder interest will be better served in the long term by this move into faster-growing, more profitable markets.

The opportunity in the marketplace is definitely there. Within the United States alone, the water industry is a $120 billion market that is expected to grow at a 6%-7% rate over the next year. On a global basis, the industry size exceeds $400 billion annually and is growing at a much higher rate than the United States as the emerging world continues to build out its infrastructure. The global waste-to-energy market is a smaller market, but it is still a $20 billion market with a high growth rate.

To help it achieve its goals, General Environmental has retained the services of General Pacific Partners, a financial advisory firm and long-time financial sponsor of the company, to explore and assist in the evaluation of acquisition opportunities in the wastewater management business. In a sign of progress in achieving their goals, General Environmental has already signed a definite letter of intent to acquire Santa Clara Waste Water, a profitable, 50 year old wastewater treatment business.

Since its inception in 2002, General Environmental Management Inc. has grown at a compounded annual rate of 48% to generate annual revenues of $37 million from an initial $2.3 million in 2002. With their shift in focus into higher-profit, faster-growing markets, General Environmental over the next several years should be able to achieve an even more enviable track record.

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