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MEMORANDUM

TO: Municipal Sewer Services Employees

FROM: Robert Bobb

Chairman

DATED: December 13, 2007

I'd like to let everyone know that a local reporter has taken an interest in Municipal Sewer

Services, its work for the City of Chicago, its past leadership and two of its investors. First off,all of you know that MSS has provided the City with top-quality service at a fair price since

2000. We're proud of the work we do on behalf of all Chicagoans.

The reporter's questions focus on two issues: the company's filings with the City of Chicago

while bidding for or administering contracts (or, at the Citys option, earning extensions on those

contracts) and two MSS investors.

I don't have to tell you that we are a vibrant, growing business. Our success is based on

everyone having a job to do and doing it the right way. None of us has time to look over our

colleagues' shoulders, especially when day-to-day matters are concerned. When you hire

someone to do a job, you trust that the job will get done the right way all the time. You trust thatpeople you hire will work hard every day to move our company forward, and not do anything to

cause it harm.

There were a number of mistakes or oversights with regard to filings when MSS was obtaining

its predecessor's contracts with the City and renewals of these contracts. The former COO and

his administrative assistant are the sole persons responsible for these errors. That said, we have

and will continue to do whatever we need to do to ensure we're performing our jobs

professionally and with integrity. These errors, among others, are why we have new

management. We will correct these filings if requested by the City.

MSS continues to deliver top-quality service to Chicago taxpayers at a fair price, as we havealways done. We have not had any service-related complaints from the City either under the old

contracts or the new contracts.

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With respect to the investors, the reporter has also asked about Patrick Daley and Robert

Vanecko's investments in 2003 resulting in their owning 4% of the company. Their investments

were passive in nature and were made long after the company had been awarded City contracts.

While they no longer have a stake in MSS, we were proud to have Patrick and Bob as investors,

as we would be with anyone else who saw enough potential in what we do to want to share in oursuccess.

In 2004, after earning his master's degree from the University of Chicago, Patrick enlisted in the

United States Army. And, we have found out that next week, Patrick will be deployed to

Afghanistan. We pray for his safe return and hope he finds his commitment to our nation

rewarding and fulfilling. We're proud to call him a friend. In the meantime, I will continue to

keep all of you posted regarding this issue.

Thank you.