-- Reaffirms 2008 earnings guidance

               -- Expects 2008 free cash flow of $350 million

       -- Increases quarterly dividend 12 percent to $0.19 per share



    FORT LAUDERDALE, Fla., July 24 /EMWNews/ -- Republic

Services, Inc. (NYSE: RSG) today reported that revenue for the three months

ended June 30, 2008 increased 2.4 percent to $827.5 million compared to

$808.4 million for the same period in 2007. The Company's internal growth

during the period was 3.9 percent, with a 7.0 percent increase from price,

partially offset by a 3.1 percent decrease in volume. Net income for the

three months ended June 30, 2008 was $62.3 million, or $.34 per diluted

share, compared to $87.2 million, or $0.45 per diluted share, last year.

The Company's income before income taxes for the three months ended June

30, 2008 includes a $34.0 million pre-tax charge ($21.8 million, or

approximately $.12 per diluted share, net of tax) related to environmental

conditions at the Company's Countywide Recycling and Disposal Facility in

Ohio. Net income for the three months ended June 30, 2007 includes a tax

benefit of $5.0 million, or approximately $0.03 per diluted share, related

to the effective closing of the Internal Revenue Service's audits of the

Company's consolidated tax returns for fiscal years 2001 through 2004.



    Operating income for the three months ended June 30, 2008 was $119.6

million, or 14.5 percent of revenue, compared to $153.1 million, or 18.9

percent of revenue, for the same period last year. Excluding the $34.0

million charge to operating expenses for the Company's Countywide Recycling

and Disposal Facility, operating income for the three months ended June 30,

2008 would have been $153.6 million, or 18.6 percent of revenue.



    Revenue for the six months ended June 30, 2008 increased 2.1 percent to

$1,606.7 million from $1,574.0 million for the same period in 2007. Net

income for the six months ended June 30, 2008 was $138.4 million, or $0.75

per diluted share, compared to $141.1 million, or $0.72 per diluted share,

for the same period last year. The Company's income before income taxes for

the six months ended June 30, 2008 includes a $34.0 million pre-tax charge

($21.8 million, or approximately $.12 per diluted share, net of tax)

related to environmental conditions at the Company's Countywide Recycling

and Disposal Facility. The Company's income before income taxes for the six

months ended June 30, 2007 includes a $22.0 million pre-tax charge ($13.5

million, or approximately $.07 per diluted share, net of tax) related to

environmental conditions at Countywide.



    Operating income for the six months ended June 30, 2008 was $261.8

million, or 16.3 percent of revenue, compared to $267.8 million, or 17.0

percent of revenue, for the same period last year. Excluding $34.0 million

and $21.3 million of operating expenses included in the charges for the

Company's Countywide Recycling and Disposal Facility during 2008 and 2007,

respectively, operating income for the six months ended June 30, 2008 and

2007 would have been $295.8 million, or 18.4 percent of revenue, and $289.1

million, or 18.4 percent of revenue, respectively.



    Financial Guidance



    Republic Services also announced today that it has updated its

financial guidance for 2008.



    "The Company's performance was strong during the first half of 2008,"

said James E. O'Connor, Chairman and CEO of Republic Services. "Excluding

the charge associated with the environmental remediation project in Ohio,

we are on track to achieve the earnings guidance that we provided at the

beginning of the year. I am especially pleased to see margins holding

steady despite extensive pressure from diesel fuel costs."



    Based upon its performance for the first six months of 2008, the

Company has updated its financial guidance as follows:






    -- Earnings Per Share:  The Company reaffirmed earnings per share guidance

       in the range of $1.78 to $1.82 per diluted share, excluding the

       environmental remediation charge for Countywide.



    -- Operating Margins:  The Company expects margins at or above prior year

       margins, excluding the environmental remediation charge.



    -- Free Cash Flow: The Company expects free cash flow to be approximately

       $350 million.



    -- Internal Growth:  The Company expects higher internal growth of

       approximately 3.5 percent to 4.0 percent, with approximately 6.5

       percent to 7.0 percent growth from price increases, while volume is

       expected to decline by 3.0 percent.



    -- Capital Spending:  The Company anticipates 2008's net capital spending

       of approximately $335 million.





                         Quarterly Dividend Increased

    Republic also announced that its Board of Directors has approved a 12

percent increase in the Company's regular quarterly dividend from $0.17 per

share to $0.19 per share. The quarterly dividend of $0.19 per share will be

paid on October 15, 2008 to shareholders of record on October 1, 2008.



    "The combination of solid earnings and efficient use of capital has

allowed us to increase our shareholder dividend," said James E. O'Connor.



    Share Repurchase Program



    Republic reiterated the suspension of the Company's share repurchase

program due to the planned merger with Allied Waste Industries, Inc.



    Republic Services, Inc. is a leading provider of solid waste

collection, transfer and disposal services in the United States. The

Company's operating units are focused on providing solid waste services for

commercial, industrial, municipal and residential customers.



    Certain statements and information included herein constitute

"forward-looking statements" within the meaning of the Federal Private

Securities Litigation Reform Act of 1995. Such forward-looking statements

involve known and unknown risks, uncertainties, and other factors that may

cause the actual results, performance, or achievements of the Company to be

materially different from any future results, performance, or achievements

expressed or implied in or by such forward-looking statements. Such factors

include, among other things:






    -- whether the Company's estimates and assumptions concerning its selected

       balance sheet accounts, income tax accounts, final capping, closure,

       post-closure and remediation costs, available airspace, and projected

       costs and expenses related to the Company's landfills and property and

       equipment, and labor, fuel rates, and economic and inflationary trends,

       turn out to be correct or appropriate;



    -- various factors that will impact the actual business and financial

       performance of the Company such as competition and demand for services

       in the solid waste industry;



    -- the Company's ability to manage growth;



    -- the Company's ability to complete its merger with Allied Waste

       Industries, Inc.;



    -- compliance with, and future changes in, environmental regulations;



    -- the Company's ability to obtain approvals from regulatory agencies in

       connection with operating and expanding the Company's landfills;



    -- the ability to obtain financing on acceptable terms to finance the

       Company's operations and growth strategy and for the Company to operate

       within the limitations imposed by financing arrangements;



    -- the ability of the Company to repurchase common stock at prices that

       are accretive to earnings per share;



    -- the Company's dependence on key personnel;



    -- general economic and market conditions including, but not limited to,

       inflation and changes in commodity pricing, fuel, labor, risk and

       health insurance, and other variable costs that are generally not

       within control of the Company;



    -- the Company's dependence on large, long-term collection, transfer and

       disposal contracts;



    -- the Company's dependence on acquisitions for growth;



    -- risks associated with undisclosed liabilities of acquired businesses;



    -- risks associated with pending legal proceedings; and



    -- other factors contained in the Company's filings with the Securities

       and Exchange Commission.









                             REPUBLIC SERVICES, INC.

                      CONDENSED CONSOLIDATED BALANCE SHEETS

                        (in millions, except share data)



                                              June 30,        December 31,

                                               2008             2007 (1)

                                            (Unaudited)

                              ASSETS

    CURRENT ASSETS:

     Cash and cash equivalents                  $13.1             $21.8

     Accounts receivable, less allowance for

      doubtful accounts of $14.4 and $14.7,

      respectively                              320.1             298.2

     Other current assets                       117.4              93.8

       Total Current Assets                     450.6             413.8



    RESTRICTED CASH                             177.8             165.0

    PROPERTY AND EQUIPMENT, NET               2,167.5           2,164.3

    GOODWILL AND OTHER INTANGIBLE ASSETS,

     NET                                      1,586.8           1,582.2

    OTHER ASSETS                                152.3             142.5

                                             $4,535.0          $4,467.8



             LIABILITIES AND STOCKHOLDERS' EQUITY

    CURRENT LIABILITIES:

     Accounts payable, deferred revenue and

      other current liabilities                $581.4            $626.4

     Notes payable and current maturities of

      long-term debt                            101.6               2.3

       Total Current Liabilities                683.0             628.7



    LONG-TERM DEBT, NET OF CURRENT MATURITIES 1,515.4           1,565.5

    ACCRUED LANDFILL AND ENVIRONMENTAL COSTS    333.9             279.2

    OTHER LIABILITIES                           719.2             690.6

    COMMITMENTS AND CONTINGENCIES

    STOCKHOLDERS' EQUITY:

     Preferred stock, par value $.01 per share;

      50,000,000 shares authorized; none issued     -                 -

     Common stock, par value $.01 per share;

      750,000,000 shares authorized; 196,773,081

      and 195,761,969 issued, including shares

      held in treasury, respectively              2.0               2.0

     Additional paid-in capital                  64.6              38.7

     Retained earnings                        1,648.6           1,572.3

     Treasury stock, at cost (14,894,412 and

      10,338,970 shares, respectively)         (456.7)           (318.3)

     Accumulated other comprehensive income,

      net of tax                                 25.0               9.1

       Total Stockholders' Equity             1,283.5           1,303.8

                                             $4,535.0          $4,467.8





       (1) Derived from the December 31, 2007 consolidated balance sheet.







                             REPUBLIC SERVICES, INC.

              UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

                       (In millions, except per share data)



                                         Three Months Ended Six Months Ended

                                               June 30,          June 30,



                                            2008      2007    2008      2007



        REVENUE                            $827.5   $808.4 $1,606.7 $1,574.0



        EXPENSES:

          Cost of operations                543.5    497.9  1,020.0    986.3

          Depreciation, amortization and

           depletion                         76.2     76.9    149.6    155.9

          Accretion                           4.5      4.2      8.9      8.3

          Selling, general and

           administrative                    83.7     76.3    166.4    155.7



        OPERATING INCOME                    119.6    153.1    261.8    267.8



        INTEREST EXPENSE                    (21.1)   (23.2)   (42.5)   (47.2)

        INTEREST INCOME                       2.5      3.1      5.3      6.4

        OTHER INCOME (EXPENSE), NET           1.7      0.7      1.9      1.1



        INCOME BEFORE INCOME TAXES          102.7    133.7    226.5    228.1



        Provision for income taxes           40.4     46.5     88.1     87.0



        NET INCOME                          $62.3    $87.2   $138.4   $141.1



        BASIC EARNINGS PER SHARE:

           Basic earnings per share         $0.34    $0.45    $0.76    $0.73



           Weighted average common shares

            outstanding                     182.0    192.7    182.7    193.2



        DILUTED EARNINGS PER SHARE:

           Diluted earnings per share       $0.34    $0.45    $0.75    $0.72



           Weighted average common and

            common equivalent shares

            outstanding                     183.9    194.6    184.5    195.1



        CASH DIVIDENDS PER COMMON SHARE   $0.1700  $0.1067  $0.3400  $0.2134







                             REPUBLIC SERVICES, INC.

            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                  (in millions)



                                                 Six Months Ended June 30,

                                                  2008              2007



    CASH PROVIDED BY OPERATING ACTIVITIES:

     Net income                                  $138.4            $141.1

     Adjustments to reconcile net income to net

      cash provided by operating activities:

       Depreciation, amortization, and depletion  149.6             155.9

       Accretion                                    8.9               8.3

       Other non-cash items                        22.7              15.1

       Change in operating assets and liabilities,

        net of effects from business acquisitions

        and dispositions                           (8.1)             23.5

                                                  311.5             343.9

    CASH USED IN INVESTING ACTIVITIES:

     Purchases of property and equipment         (165.4)           (147.3)

     Proceeds from sales of property and

      equipment                                     3.3               2.7

     Cash used in business acquisitions, net of

      cash acquired                               (12.2)                -

     Cash proceeds from business dispositions,

      net of cash disposed                            -               4.9

     Change in restricted cash                    (12.8)             23.9

     Other                                         (0.2)                -

                                                 (187.3)           (115.8)

    CASH USED IN FINANCING ACTIVITIES:

     Proceeds from notes payable and long-term

      debt                                        167.0             105.0

     Payments of notes payable and long-term debt(116.5)           (151.7)

     Issuances of common stock                     14.9              19.3

     Excess income tax benefits from stock option

      exercises                                     2.8               2.8

     Purchases of common stock for treasury      (138.4)           (165.1)

     Cash dividends paid                          (62.7)            (41.6)

                                                 (132.9)           (231.3)

    DECREASE IN CASH AND CASH EQUIVALENTS          (8.7)             (3.2)

    CASH AND CASH EQUIVALENTS AT BEGINNING OF

     PERIOD                                        21.8              29.1



    CASH AND CASH EQUIVALENTS AT END OF PERIOD    $13.1             $25.9







                           REPUBLIC SERVICES, INC.

                 SUPPLEMENTAL UNAUDITED FINANCIAL INFORMATION

    The following information should be read in conjunction with the

Company's audited Consolidated Financial Statements and notes thereto

appearing in the Company's Form 10-K as of and for the year ended December

31, 2007. It should also be read in conjunction with the Company's

Unaudited Condensed Consolidated Financial Statements and notes thereto

appearing in the Company's Form 10-Q as of and for the three months ended

March 31, 2008.



    INCOME TAXES



    The Company adopted the provisions of FASB Interpretation No. 48,

"Accounting for Uncertainty in Income Taxes" ("the Interpretation")

effective January 1, 2007, as required. During the first quarter of 2007,

the Company recorded $4.2 million of additional income taxes related to the

resolution of various income tax matters. During the second quarter of

2007, the Company recorded a $5.0 million reduction in income taxes related

to the resolution of various income tax matters, including the effective

closing of the Internal Revenue Service's audits of the Company's tax

returns for fiscal years 2001 through 2004. The Company expects its

effective tax rate for fiscal year 2008 to be approximately 38.5%.



    OTHER MATTERS



    Proposed Merger with Allied. As previously reported, on June 22, 2008,

the Company entered into an Agreement and Plan of Merger (the "Merger

Agreement") with Allied Waste Industries, Inc. ("Allied"). The completion

of the Merger is subject to certain terms and conditions, including, but

not limited to, approval of the transaction by the shareholders of both

Republic and Allied, regulatory approval from the Department of Justice,

and receipt of credit ratings for the combined company classifying its

senior unsecured debt as investment grade. The Merger Agreement also

contains other terms and conditions that are customary for a merger of

equals transaction. At the effective time of the Merger, each share of

Allied common stock outstanding will be converted into .45 shares of

Republic common stock. Republic expects to issue approximately 198 million

shares of common stock to Allied shareholders in the transaction. Mr. James

E. O'Connor, currently Chairman of the Board of Directors and Chief

Executive Officer of Republic, and Mr. Tod Holmes, the Company's Chief

Financial Officer, will continue in their present positions with the

combined company. The transaction is expected to close in the fourth

quarter of 2008. As of June 30, 2008, the Company had capitalized $4.9

million of costs to other assets that are directly related to the

transaction.



    Countywide Landfill Remediation. During the first quarter of 2007, the

Company recorded a pre-tax charge of $22.0 million ($13.5 million, or $.07

per diluted share, net of tax), related to estimated costs the Company

believed would be required to comply with Final Findings and Orders

("F&Os") issued by the Ohio Environmental Protection Agency ("OEPA") in

response to environmental conditions at the Company's Countywide Recycling

and Disposal Facility ("Countywide") in East Sparta, Ohio. The Company has

complied with and will continue to comply with the F&Os. However, even

though indications existed that the reaction had begun to subside, the

Company nevertheless agreed with the OEPA to take certain additional

remedial actions at Countywide. Consequently, during the three months ended

September 30, 2007, the Company recorded an additional pre-tax charge of

$23.3 million ($14.4 million, or $.08 per diluted share, net of tax).



    During the second quarter of 2008, the Company received additional

orders from the OEPA. The Company also entered into an Agreed Order on

Consent ("AOC") with the United States Environmental Protection Agency

("U.S. EPA"). As a result of the additional orders received from the OEPA

and the orders received from the U.S. EPA, the Company recorded an

additional pre-tax charge of $34.0 million ($21.8 million, or $.12 per

diluted share, net of tax) during the three months ended June 30, 2008.



    The remediation liability remaining as of June 30, 2008 is $46.8

million, of which approximately $14.0 million is expected to be paid out

during the remainder of 2008. The majority of the remaining costs are

expected to be paid during 2009 through 2011. While the Company is

vigorously pursuing financial contributions from third parties for its

costs to comply with the F&Os and the additional remedial actions, the

Company has not recorded any receivables for potential recoveries.



    It is reasonably possible that the Company will need to adjust the

charges noted above to reflect the effects of new or additional

information, to the extent that such information impacts the costs, timing

or duration of the required actions. Future changes in the Company's

estimates of the costs, timing or duration of the required actions could

have a material adverse effect on the Company's financial position, results

of operations or cash flows.



    OPERATING INCOME BEFORE DEPRECIATION, AMORTIZATION, DEPLETION AND

ACCRETION



    Operating income before depreciation, amortization, depletion and

accretion, which is not a measure determined in accordance with U.S.

generally accepted accounting principles ("GAAP"), for the three and six

months ended June 30, 2008 and 2007 is calculated as follows (in millions):










                                 Three Months Ended     Six Months Ended

                                       June 30,              June 30,

                                  2008        2007       2008         2007



    Net income                    $62.3       $87.2     $138.4      $141.1

    Provision for income taxes     40.4        46.5       88.1        87.0

    Other (income) expense, net    (1.7)        (.7)      (1.9)       (1.1)

    Interest expense               21.1        23.2       42.5        47.2

    Interest income                (2.5)       (3.1)      (5.3)       (6.4)

    Depreciation, amortization

     and depletion                 76.2        76.9      149.6       155.9

    Accretion                       4.5         4.2        8.9         8.3

     Operating income before

      depreciation, amortization,

      depletion and accretion    $200.3      $234.2     $420.3      $432.0





    The Company believes that the presentation of operating income before

depreciation, amortization, depletion and accretion is useful to investors

because it provides important information concerning the Company's

operating performance exclusive of certain non-cash costs. Operating income

before depreciation, amortization, depletion and accretion demonstrates the

Company's ability to execute its financial strategy which includes

reinvesting in existing capital assets to ensure a high level of customer

service, investing in capital assets to facilitate growth in the Company's

customer base and services provided, pursuing strategic acquisitions that

augment the Company's existing business platform, repurchasing shares of

common stock at prices that provide value to the Company's shareholders,

paying cash dividends, maintaining the Company's investment grade rating

and minimizing debt. This measure has material limitations. Although

depreciation, amortization, depletion and accretion are considered

operating costs in accordance with GAAP, they represent the allocation of

non-cash costs generally associated with long-lived assets acquired or

constructed in prior years.



    CASH FLOW



    The Company defines free cash flow, which is not a measure determined

in accordance with GAAP, as cash provided by operating activities less

purchases of property and equipment plus proceeds from sales of property

and equipment as presented in the Company's unaudited condensed

consolidated statements of cash flows. The Company's free cash flow for the

three and six months ended June 30, 2008 and 2007 is calculated as follows

(in millions):










                                Three Months Ended       Six Months Ended

                                      June 30,               June 30,

                                  2008        2007       2008          2007



    Cash provided by operating

     activities                 $163.5       $204.7      $311.5     $343.9

    Purchases of property and

     equipment                   (83.8)       (63.2)     (165.4)    (147.3)

    Proceeds from sales of

     property and equipment        2.3          1.7         3.3        2.7

    Free cash flow               $82.0       $143.2      $149.4     $199.3



    Purchases of property and equipment as reflected on the Company's

unaudited condensed consolidated statements of cash flows and the free cash

flow presented above represent amounts paid during the period for such

expenditures. A reconciliation of property and equipment reflected on the

unaudited condensed consolidated statements of cash flows to property and

equipment received during the period is as follows (in millions):










                               Three Months Ended     Six Months Ended

                                     June 30,             June 30,

                                  2008     2007      2008          2007



    Purchases of property and

     equipment per the

     unaudited condensed

     consolidated statements

     of cash flows               $83.8    $63.2      $165.4      $147.3

    Adjustments for property

     and equipment received

     during the prior period

     but paid for in the

     following period, net         5.9      5.8       (27.9)      (34.2)

    Property and equipment

     received during the

     current period              $89.7    $69.0      $137.5      $113.1



    The adjustments noted above do not affect either the Company's net

change in cash and cash equivalents as reflected in its unaudited condensed

consolidated statements of cash flows or its free cash flow.



    The Company believes that the presentation of free cash flow provides

useful information regarding the Company's recurring cash provided by

operating activities after expenditures for property and equipment, net of

proceeds from sales of property and equipment. It also demonstrates the

Company's ability to execute its financial strategy as previously discussed

and is a key metric used by the Company to determine compensation. The

presentation of free cash flow has material limitations. Free cash flow

does not represent the Company's cash flow available for discretionary

expenditures because it excludes certain expenditures that are required or

that the Company has committed to such as debt service requirements and

dividend payments. The Company's definition of free cash flow may not be

comparable to similarly titled measures presented by other companies.



    Capital expenditures include $.7 million and $1.0 million of

capitalized interest for the three and six months ended June 30, 2008, and

$.7 million and $1.3 million of capitalized interest for the three and six

months ended June 30, 2007.



    As of June 30, 2008, accounts receivable were $320.1 million, net of

allowance for doubtful accounts of $14.4 million, resulting in days sales

outstanding of approximately 34.7 (or 20.8 net of deferred revenue).



    STOCK REPURCHASE PROGRAM



    During the three months ended June 30, 2008, the Company paid $40.6

million to repurchase 1.4 million shares of its common stock. During the

six months ended June 30, 2008, the Company repurchased a total of 4.6

million shares of its common stock for $138.4 million. As of June 30, 2008,

the Company was authorized to repurchase up to an additional $248.0 million

of its common stock under its existing stock repurchase program. During the

second quarter of 2008, the Company suspended its share repurchase program

as a result of its planned merger with Allied.



    CASH DIVIDENDS



    In April 2008, the Company paid a cash dividend of $31.1 million to

shareholders of record as of April 1, 2008. As of June 30, 2008, the

Company recorded a dividend payable of $30.9 million to shareholders of

record at the close of business on July 1, 2008, which has been paid. In

July 2008, the Company's Board of Directors approved a 12% increase in the

Company's quarterly dividend to $.19 per share. The Board also declared a

regular quarterly dividend of $.19 per share payable to shareholders of

record as of October 1, 2008.



    REVENUE








    The following table reflects total revenue of the Company by revenue

source for the three and six months ended June 30, 2008 and 2007 (in

millions):







                             Three Months Ended       Six Months Ended

                                  June 30,                 June 30,

                             2008         2007        2008          2007



    Collection:

       Residential          $212.3       $201.6       $417.2       $397.4

       Commercial            254.8        233.6        503.3        464.0

       Industrial            162.1        166.8        315.0        322.5

       Other                   5.4          5.0         10.3          9.8

         Total collection    634.6        607.0      1,245.8      1,193.7



    Transfer and disposal    307.0        313.1        581.9        591.9

    Less: Intercompany      (156.7)      (160.2)      (301.2)      (305.2)

       Transfer and disposal,

        net                  150.3        152.9        280.7        286.7

      Other                   42.6         48.5         80.2         93.6

       Total revenue        $827.5       $808.4     $1,606.7     $1,574.0



    The following table reflects the Company's revenue growth for the three

and six months ended June 30, 2008 and 2007:










                                 Three Months Ended      Six Months Ended

                                     June 30,                 June 30,

                                  2008       2007         2008        2007



    Core price                   4.1%         4.0%        4.1%       4.2%

    Fuel surcharges               1.9           .1         1.5         .1

    Environmental fee              .4           .3          .3         .4

    Commodities                    .6           .8          .7         .8



       Total price                7.0          5.2         6.6        5.5



    Core volume                  (3.4)         (.9)       (2.9)      (1.3)

    Non-core volume                .3          (.2)         .1        (.1)



       Total volume              (3.1)        (1.1)       (2.8)      (1.4)



    Total internal growth         3.9          4.1         3.8        4.1



    Acquisitions, net of

     divestitures                (1.7)         (.5)       (1.8)       (.4)

    Taxes                          .2           .1          .1          -



       Total revenue growth      2.4%         3.7%        2.1%       3.7%