ADA-ES Contract Award and Update

Michael Durham, President & CEO of ADA-ES, commented, "This contract is with a power company that has purchased our ACI systems in the past. The current markets for our mercury control systems and powdered activated carbon sorbents are being driven by regulations in 16 states, new power plants being constructed, and regulations in several Canadian provinces. Once the equipment is up and running, it will need a continuous supply of activated carbon ("AC") to control mercury emissions."

The Company is also providing the following updates:

-- The Norit trial, which was originally scheduled for September 21st, was rescheduled by the Court to commence on October 19th in order to allow the Court to consider a multitude of pending pretrial motions filed by the parties.

-- The Company has been notified by the Department of Energy (DOE) that because its carbon dioxide capture technology is still under development and not yet commercial, it did not qualify for funding through the current solicitation. ADA expects additional DOE funding opportunities during the next 6-12 months that could be more appropriate for its solid-sorbent based technology for carbon dioxide capture.

-- Related to the Company's CyClean joint venture with NexGen, the Company has learned from the IRS that it is continuing to develop guidance on specific details to demonstrate qualification for the Section 45 tax credits. Their publicly announced schedules for the guidance have passed, and the IRS has not provided any expectations on when it intends to release information on this topic. While negotiations with interested customers for CyClean continue in earnest, prolonged delays on the release of IRS guidance may limit the number of potential qualifying systems that can be placed in service before year-end. Once guidance is released, it will be available on the IRS website.

About ADA-ES

ADA-ES is a leader in clean coal technology and the associated specialty chemicals. The Company develops and implements proprietary environmental technology and specialty chemicals that enable coal-fueled power plants to enhance existing air pollution control equipment, maximize capacity and improve operating efficiencies. Through its largest and fastest-growing segment, Mercury Emission Control, ADA-ES supplies activated carbon injection systems, mercury measurement instrumentation, and related services. To meet the needs of the power industry for mercury control, a joint venture of the Company is developing state-of-the-art facilities to produce AC with the first plant (the "AC Facility") projected to come on-line in 2010. Additionally, the Company is developing technologies for power plants to address issues related to the emissions of carbon dioxide.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements included in this release include statements regarding the expected delivery and startup dates of the ACI system and its need for AC, DOE funding opportunities for carbon dioxide capture technology, impact of delays in IRS guidance for the Section 45 tax credits and timing of commencement of operations at the AC Facility. These statements are based on current expectations, estimates, projections, beliefs and assumptions of our management. Such statements involve significant risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to, government funding for our business; changes in laws and regulations, prices, economic conditions and market demand; impact of competition; decreases in the use of coal for electricity; results of demonstrations of our technology; operational difficulties; availability of raw materials and equipment; loss of key personnel; availability of skilled personnel; failure to satisfy performance guaranties; and risks related to the AC Facility, including changes in the costs and timing of construction; failure to raise additional equity financing or satisfy conditions in our equity financing agreements for the AC Facility; inability to sign or close acceptable debt financing, coal supply or off-take agreements with respect to the AC Facility in a timely manner; and impact of litigation; and other factors discussed in greater detail in our filings with the Securities and Exchange Commission (SEC). You are cautioned not to place undue reliance on our forward-looking statements and to consult filings we make with the SEC for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.

SOURCE: ADA-ES, Inc.

ADA-ES, Inc. 
Michael D. Durham, Ph.D., MBA, President 
Mark H. McKinnies, Senior VP & CFO 
303-734-1727 
www.adaes.com 
or 
Investor Relations Counsel: 
The Equity Group Inc. 
www.theequitygroup.com 
Melissa Dixon, 212-836 9613 
MDixon@equityny.com 
Linda Latman, 212-836-9609 
LLatman@equityny.com