FlagshipPDG Announces First Quarter Results for Period Ended April 30, 2009

PITTSBURGH, PA, June 15, 2009 – PDG Environmental, Inc. (dba FlagshipPDG) (OTC BB: PDGE), a leading provider of environmental remediation, disaster response and reconstruction services, today reported financial results for the first fiscal quarter ended April 30, 2009.

Revenues for the first quarter of fiscal 2010 were $12.6 million, down 28.7% from the $17.7 million reported in the first quarter of fiscal 2009. The decrease was due to lower customer spending resulting from the overall economic conditions as well as several ongoing contracts being put on hold during the quarter. The field margin which is defined as the difference between contract revenues and direct field costs, increased to 29.2% of revenue for the current quarter, from 26.6% in the prior year fiscal quarter. Other direct and SG&A costs decreased $1.3 million from the first quarter of fiscal 2009 largely as a result of cost cutting measures in the third and fourth quarter of fiscal 2009. Pre-tax loss decreased by $200,000 from the prior fiscal quarter as a result of the factors noted previously. The Company reported a net loss of $(1.5) million, or $(0.07) per diluted share in the first quarter of fiscal 2010, compared with a net loss of $(1.1) million, or $(0.05) per diluted share in the first quarter of fiscal 2009. EBITDA (earnings before interest, taxes, depreciation and amortization) was a negative $(553,000) for the current quarter versus a negative EBITDA of $(760,000) for the comparable period in fiscal 2009. In the first quarter of fiscal 2010, FlagshipPDG recorded non-cash accounting costs of $297,000 related to its July 2005 private placement as compared to $248,000 for the comparable period last year.

“While the first quarter is historically our slowest revenue quarter, it is clear that our results were greatly impacted by the overall national economic conditions. In the last half of fiscal 2009, we took necessary steps to rationalize our fixed costs to achievable revenue levels which resulted in a decrease to our overhead cost of approximately $1.3 million as compared to the comparable period last year. In spite of nearly 30% lower revenues, we were able to reduce the quarterly loss through cost cutting and significant margin improvement. We are entering historically the busiest part of our fiscal year and we are beginning to see an increase in opportunities and are hopeful that federal economic stimulus dollars will also have a positive impact on our top line through increased spending on projects for schools, public housing, DOE site clean-up and federal buildings.” said John C. Regan, chairman and chief executive officer of FlagshipPDG.

The Company makes use of EBITDA (earnings before interest, taxes, depreciation and amortization) as a financial measure which it believes is a useful performance indicator. EBITDA is not a recognized term under generally accepted accounting principles, or "GAAP," and should not be considered as an alternative to net income/(loss) or net cash provided by operating activities, which are GAAP measures. A reconciliation of EBITDA to net income/(loss) appears at the end of this release as actual results for the quarter.

About FlagshipPDG
FlagshipPDG, headquartered in Pittsburgh, PA, is a leading provider of specialty contracting services including asbestos abatement, mold remediation, emergency response, demolition and reconstruction to commercial, industrial and governmental clients nationwide. With over twenty years experience, FlagshipPDG has offices nationwide capable of responding to customer requirements coast to coast. For additional information, please visit http://www.FlagshipPDG.com.

Safe Harbor Statement under Private Securities Act of 1995: The statements contained in this release, which are not historical facts, may be deemed to contain forward-looking statements, including, but not limited to, deployment of new services, growth of customer base, and growth of service area, among other items. Actual results may differ materially from those anticipated in any forward-looking statement with regard to magnitude, timing or other factors. Deviation may result from risk and uncertainties, including, without limitation, the company's dependence on first parties, market conditions for the sale of services, availability of capital, operational risks on contracts, and other risks and uncertainties. The company disclaims any obligation to update information contained in any forward-looking statement.

– Tables to follow –