AVALON HOLDINGS CORP

Avalon Holdings Corporation ( Avalon or the Company ) was formed on April 30, 1998 as a subsidiary of American Waste Services, Inc. ( AWS ). On June 17, 1998, AWS distributed, as a special dividend, all of the outstanding shares of capital stock of Avalon to the holders of AWS common stock on a pro rata and corresponding basis (the Spin-off ). The history and organization of the remaining operations, some of which were contributed to Avalon as a result of the Spin-off, are described below. In June 1990, AWS purchased approximately 5.6 acres of real estate located in Warren, Ohio on which it constructed Avalon’s corporate headquarters. In connection with the acquisition of such property, Avalon Lakes Golf, Inc. ( ALGI ), a former subsidiary of AWS and now an indirect wholly owned subsidiary of Avalon, acquired the real and personal property associated with the Avalon Lakes Golf Course, an 18-hole golf course adjacent to the office property. The corporate headquarters and ALGI were contributed to Avalon by AWS. The Avalon corporate headquarters building includes a clubhouse, restaurant, golf simulators and a pro shop for the Avalon Golf and Country Club at Avalon Lakes Golf Course. In 1995, American Waste Management Services, Inc. ( AWMS ) commenced its waste disposal brokerage and management operations and in 1997, American Landfill Management, Inc. ( ALMI ) started its captive landfill management operations. Both companies were contributed to Avalon by AWS and now are wholly owned subsidiaries of Avalon. In November 2003, TBG, Inc.