So farour efforts have culminated in a letter of intent to purchase substantially allof the assets of three

So far,our efforts have culminated in a letter of intent to purchase substantially allof the assets of three companies that operate a saltwater disposal, treatmentand water pipeline transportation business in Texas and Louisiana. Globally, the increasing need for delivery andpurification of fresh water is driving growth in the water industry. Heckmann, Chairman and CEO of Heckmann Corporation, stated, "Wemade great progress in accelerating our strategic investment into diversifiedwater business interests. ? Maintained a debt-free balance sheet as of March 31, 2009 with a strong cash position of approximately $300 million dollars.Mr Richard J.

? Continued to execute on business opportunities in China for bottled water and non-carbonated drink servicing: o Began renovationand installationof bottlingfacility inXi`an, Shaanxi Province;o Acquired 67% ofHarbin Taoda Drinks, Ltd.,with the balanceof transaction expected toclose this year. ? Acquired a minority interest in Underground Solutions Inc., a California-based water infrastructure and pipeline company. The total shares recovered fromthe former management and insiders totals approximately 28.5 million shares.Excluding the goodwill impairment charge and other one-time charges, adjustedEBITDA for the first quarter of 2009 was $320,000. Business Highlights:? Entered into a letter of intent agreement to acquire the water infrastructure assets of Charis Partners, Greer Exploration and Silversword in Texas and Louisiana for a purchase price of approximately $36 million in cash and stock The acquisition isexpected to close before June 30, 2009.

The Company initiated a goodwillimpairment analysis for this transaction as a result of the deterioration ofChina`s economic conditions and the subsidiary`s current operating results, andexpects to finalize its goodwill impairment analysis during the third quarter of2009. The Company also recorded a non-cash purchase accounting adjustment ofapproximately $100.0 million to reflect the cancellation of an additional 12.2million shares of Company common stock previously issuable in connection withits acquisition of China Water and approximately 1.5 million warrants issuable,to former China Water management and insiders. First Quarter 2009 Financial ResultsFor the seasonally slow first quarter of 2009, Heckmann Corporation`s net saleswere $7.8 million, and the net loss for the first quarter was ($186.2 million),or ($1.69) per share, which included a $184.0 million non-cash goodwillimpairment charge representing management`s best estimate of impairment lossassociated with the China Water acquisition. The results for the first quarter reflect principally the operatingresults of the Company`s subsidiary China Water and Drinks, Inc.