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For Immediate Release:

ICF KAISER ANNOUNCES SECOND-QUARTER FINANCIAL RESULTS

FAIRFAX, VA, August 16, 1999 - ICF Kaiser International, Inc. (NYSE:ICF) today announced its financial results for its second quarter and six months ended June 30, 1999.

During the quarter ended June 30, 1999, the Company recognized gains on the sales of its Environment and Facilities Management (EFM) Group and 90 percent of its Consulting Group. The Company's remaining engineering and construction operations, however, continued to operate at a loss after absorbing the corporate overhead remaining after the divestitures. The operating results of the EFM and Consulting Groups during 1999 have been summarized as discontinued operations in the Company's financial statements. Accordingly, continuing operations refers to the Company's engineering and construction unit as well as its interest in Kaiser-Hill.

The after-tax net income of $28.8 million resulted in a fully diluted earnings per share of $1.21 for the quarter compared to a net loss of $35.7 million and a loss of $1.48 per share in the same period in 1998. The gains from the sales of the Company's Environment and Facilities Management Group and Consulting Group completed in the second quarter were $48.8 million. The impact of the gains was offset in part by nonrecurring charges of $9.8 million largely for severance and restructuring costs pursuant to a plan designed to enable the Company to return to profitability. The results for the second quarter of 1998 also reflected several nonrecurring charges, including a $40.0 million charge for its estimate of the Nitric Acid project overruns, a charge for the cumulative effect of an accounting change totaling $6.0 million and a $1.5 million charge to cover costs necessary to divest of certain divisions. After eliminating the effects of the gain on the asset sales and these other nonrecurring charges, the Company's remaining business segments taken together generated a $0.3 million loss from operations for the second quarter of 1999 and $2.3 million in operating income in the second quarter of 1998.

The Company's $10.1 million loss from continuing operations during the quarter ended June 30, 1999 was attributable to several factors, including:

Reduced profits from the microelectronics and clean room construction activities of its business, which continue to be affected by the down cycle in that industry. Operations in the Asian area also continue to be adversely affected by the existing economic conditions in that area.

Several nonrecurring charges totaling $9.4 million that were recognized in connection with actions aimed at enabling the Company to return to profitability. The total charge consisted of the write-off of $1.6 million of goodwill associated with the discontinuance of operations from a prior acquisition, a $2.2 million write-down reflective of the carrying value impairment of certain long-term investments, a $1.1 million charge incurred as a result of office downsizing and consolidation, and a $4.5 million charge for severance and other restructuring costs. But for these charges, the results for the second quarter of 1999 showed a slight improvement over the first quarter of 1999.

"Our results from continuing operations during the second quarter were disappointing but expected," explained James J. Maiwurm, President and Chief Executive Officer of Kaiser. "Significant costs for severance and other nonrecurring expenses associated with the plan to return to profitability are reflected in the current results. The positive effects of the efforts completed to date will be apparent after this quarter. We are addressing the causes of the losses from our remaining operations with a sense of urgency and we expect to return to operating profitability by the end of the year." Maiwurm additionally noted that the Company's management continues to believe that it is necessary to restructure the Company's debt. Discussions with the Company's noteholders are continuing.

About The Company

Headquartered in Fairfax, Virginia, ICF Kaiser is one of the United States' largest companies providing engineering, project management, construction management, and program management services. Its more than 3,000 employees, located in 40 offices around the world, serve the market areas of transit and transportation; alumina/aluminum and mining/minerals; facilities engineering and management, including wastewater treatment; iron and steel; and microelectronics and clean technology. ICF Kaiser reported gross revenue of more than $1.2 billion for the 12 months ended December 31, 1998. All references to ICF Kaiser indicate ICF Kaiser International, Inc. and any of its subsidiaries.

Forward-Looking Statements and Certain Factors Affecting ICF Kaiser and Its Businesses

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are identified by the use of forward-looking terminology such as "may," "will," "could," "should," "expect," "believe," "anticipate," "aim," "intend," "plan," "estimate," or "continue" or the negative thereof or other variations thereof. Such forward-looking statements are necessarily based on various assumptions and estimates and are inherently subject to various risks and uncertainties, including risks and uncertainties relating to the possible invalidity of the underlying assumptions and estimates, that may cause actual results to differ materially from those stated or implied by these forward-looking statements. These forward-looking statements also are subject to company-specific risks and uncertainties such as the company's ability to maintain existing contracts (including contracts with the federal government) at their existing or at improved levels, to accurately estimate and recover costs incurred on fixed-price contracts, to sign new contracts in established or new markets (including international markets), to conclude and implement successfully certain acquisitions and joint-venture relationships, and to avoid significant environmental fines, penalties, or liabilities.