785186--2/27/2006--DURATEK

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Risks Relating to the Pending Merger with Energy Solutions We are subject to business uncertainties and contractual restrictions while the merger with Energy Solutions is pending. Failure to complete the merger with Energy Solutions could negatively affect our stock price and our future business and financial prospects. The Merger Agreement limits our ability to pursue alternatives to this merger. The documents governing our indebtedness restrict our ability and the ability of our subsidiaries to engage in some business transactions. Our business and operating results could result in a reduction of elimination of previously reported profits by our inability to accurately estimate the overall risks, revenue, or costs on a contract. Our quarterly operating results may fluctuate significantly, which could have a negative effect on the price of our Common Stock. If we have to write-off a significant amount of intangible assets, our earnings will be negatively impacted. We may encounter difficulties in pursuing our growth objectives. The U.S. government can audit and disallow claims for compensation under our government contracts, and can terminate those contracts without cause. Most of our government contracts are awarded through a regulated competitive bidding process. The inability to complete existing government contracts or win new government contracts over an extended period could harm our operations and adversely affect our future revenues. If our partners fail to perform their contractual obligations on a project, we could be exposed to legal liability, loss of reputation and profit reduction or loss on the project. Our services expose us to significant risks of liability and our insurance policies may not provide adequate coverage. Expiration of the Price-Anderson Act s indemnification authority could have adverse consequences on our Federal and Commercial business units. We operate in a highly regulated industry requiring our customers and us to have and comply with federal, state, and local government permits and approvals. Changes in existing environmental laws, regulations, and programs could reduce demand for our environmental services, which could cause our revenues to decline. Adequate bonding is necessary for us to successfully win new work awards on some types of contracts. We face increasing competition in the provision of waste treatment technologies and services. Our success depends on attracting and retaining qualified personnel in a competitive environment. Our Stockholder Rights Plan and provisions of Delaware law could inhibit a change in control. The value of our Common Stock could continue to be volatile

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785186--2/27/2006--DURATEK_INC