8/9/2019 Statement of Synagro Technologies to NYC Sludge, April 6, 2010

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April 6, 2010

Statement of Layne Baroldi, Synagros director of regulatory affairs andtechnical services, in response to a question about whether the

companys connections to a corruption scandal in Detroit should impactits business with New York City:

Synagro does not believe this isolated incident involving individualsacting are reflective of the Company, nor the City of Detroit and, alone,should not affect Synagros ability to do business with a municipality.Synagro learned in June of 2008 that the United States Attorneys

Office, in conjunction with a wide-spread investigation into corruption inDetroit, was investigating whether the award of a contract to theCompany was influenced by the payment of improper payments to Cityofficials. Immediately upon learning of the investigation, Synagro began,and continues, to fully cooperate with the FBI and the federal prosecutor and the Company understands that no Synagro company,nor any other current or former employee or officer of any Synagro

company is a target of this or any other investigation.It should also be noted that Synagro and its affiliated companies submitapproximately 600 bids per year for each of the past 30 years onmunicipal and private projects. Never, in any of those approximately18,000 bids, has the Company or any affiliate had any material issue

raised in connection with business integrity.The Synagro companies and all Synagro employees take their ethicaland legal obligations very seriously. The Core Values of the company

reflect a commitment of our employees and all those acting on behalf ofthe company will manage our business with integrity, choosing to focuson excellent service, environmental stewardship, and the highest ethicalstandards, while embracing the collaborative power of partnerships andteamwork to pursue leading edge innovations for sustainable solutions.We have used the events surrounding the 2007 procurement to re-

8/9/2019 Statement of Synagro Technologies to NYC Sludge, April 6, 2010

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enforce our commitment to these Core Values.

Immediately upon learning of a potential impropriety in Detroit, thecompany undertook aggressive measures to review all standards and

policies relating to ethics. In support of this commitment, the Companyhas created the new position of Chief Compliance Officer to helpreassure us and our customers in our joint commitment to a high ethicalstandard in business dealings. The corporate management and staff ofSynagro believes the company and its affiliates have emerged strongerthan ever, with improved reporting practices, oversight and training.