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ADS and ISI Announce Joint Venture in Storm Water

Wethersfield, CT, July 8, 2003 -- Two leaders in the storm water industry have announced a joint venture named StormTech LLC (StormTech), creating a company to engineer and manufacture chambers for use in underground storm water detention and retention systems. Advanced Drainage Systems Inc.(ADS), the world's largest manufacturer of corrugated high density polyethylene (HDPE) pipe, and Infiltrator Systems Inc.(ISI), Old Saybrook, CT, the world's largest producer of subsurface polyolefin septic and storm water chambers, said the new organization will be headquartered in Wethersfield, CT, and will leverage the significant strengths of both companies. The joint venture does not involve either company's septic chamber product lines or the ADS core pipe business.

As a pioneer in the development of engineered plastic drainage chambers for wastewater applications, ISI has revolutionized subsurface chamber technology with more than 16 years of experience in manufacturing and research. During the past five years alone, the company has invested over $7 million in the development, testing and production of underground storm water chambers. ISI will design and manufacture the chambers for StormTech.

ADS has been serving the storm water market since 1966 when it introduced corrugated polyethylene pipe to the United States. The industry leader in product design, ADS now manufactures pipe and fittings from 3" to 60" diameters and serves the drainage industry through a global network of 24 manufacturing plants and 30 distribution centers. With over 200 field sales and engineering professionals, ADS will be the exclusive indepent sales agent providing sales, marketing and field engineering support for the joint venture.

"This is a very exciting time not only for ISI and ADS, but for the storm water industry as well" said Joe Chlapaty, president of ADS. "Over the last few years, we have seen a tremous focus on storm water management due to increased land development and the ever increasing regulations from the Enviromental Protection Agency (EPA). Phase II of the Clean Water Act is a prime example. As a pipe manufacturer, we have provided conventional, as well as innovative solutions to meet these requirements and assist civil design engineers around the world. As the industry leader, we are constantly searching for new ideas being developed to answer the needs of the marketplace. The StormTech chamber is a classic example of groundbreaking technology, and one in which we see tremous growth opportunity," he emphasized.

According to Jim Nichols, co-founder and president of ISI, the most economical and common method to manage storm water runoff until recently, has been through wet or dry ponds. "In many areas this is no longer a viable solution because of growing liabilities to human health and safety, as well as escalating land costs. Subsurface management of storm water runoff saves valuable land and gives designers the flexibility to plan additional parking, increase building size and provide more green space."

"In our rapidly developing world," Nichols continued, "protection and conservation of our natural resources is more important than ever. We must seek to balance land development and enviromental responsibility. StormTech will be a company dedicated to achieving this balance by developing cost effective enviromental solutions for storm water management."

For design engineers and land developers across the country, the new business entity provides a significant benefit.

"Deping on your needs or preferences," Chlapaty offered, "StormTech now provides complete underground detention or retention systems utilizing engineered polymers and state of the art structural design. When combined with ADS pipe products, no other company offers this vast array of products and level of engineering and sales support," he concluded.