NOTE A1 — RESTATEMENT

The unaudited quarterly financial data for the three and six months ended June 30, 2015 has been restated for errors related to the timing of recognition of loss reserves between quarterly periods associated with the Company’s settlement of the previously disclosed TCPA Action and Qui Tam Action. The Company determined that the estimated loss contingency for the three and six months ended June 30, 2015 was overstated by $45.0 million and understated by $28.5 million, respectively, resulting in an understatement of net income of $27.4 million and an overstatement of $19.1 million for the three month and six months ended June 30, 2015, respectively.

The Company’s Condensed Consolidated Statements of Income; Condensed Consolidated Statements of Comprehensive Income; Condensed Consolidated Statements of Cash Flows; Note 5 - Income Taxes; Note 8 - Earnings Per Common Share; and Note 12 - Geographic Information; included in this Form 10-Q have been restated to correct the misstatements described above.

The following are previously reported and restated balances of affected line items in the Condensed Consolidated Statement of Income and Condensed Consolidated Statement of Comprehensive Income, and the Condensed Consolidated Statement of Cash Flows for the three and six months ended June 30, 2015 (Unaudited).

Condensed Consolidated Statement of Income
	Three Months Ended June 30, 2015							Six Months Ended June 30, 2015
	As Reported		Adjustment			Restated		As Reported		Adjustment			Restated
Selling, general and administrative expenses (exclusive of depreciation and amortization)	$	181,752	$	(45,000	)	$	136,752	$	323,115	$	28,500		$	351,615
Total costs and expenses		605,925		(45,000	)		560,925		1,142,191		28,500			1,170,691
Income from operations		109,764		45,000			154,764		236,817		(28,500	)		208,317
Income before income taxes		91,770		45,000			136,770		199,627		(28,500	)		171,127
Income tax expense		30,874		17,619			48,493		62,921		(9,363	)		53,558
Net income		60,896		27,381			88,277		136,706		(19,137	)		117,569
Net income attributable to Stericycle, Inc.		60,449		27,381			87,830		135,907		(19,137	)		116,770
EPS – basic		0.71		0.32			1.03		1.60		(0.23	)		1.37
EPS – diluted		0.70		0.32			1.02		1.57		(0.22	)		1.35

Condensed Consolidated Statement of Comprehensive Income
	Three Months Ended June 30, 2015							Six Months Ended June 30, 2015
	As Reported		Adjustment			Restated		As Reported		Adjustment			Restated
Net income	$	60,896	$	27,381		$	88,277	$	136,706	$	(19,137	)	$	117,569
Comprehensive income/ (loss)		86,192		27,381			113,573		93,167		(19,137	)		74,030
Comprehensive income/ (loss) attributable to Stericycle, Inc.		85,976		27,381			113,357		93,419		(19,137	)		74,282

Condensed Consolidated Statement of Cash Flows
								Six Months Ended June 30, 2015
								As Reported		Adjustment			Restated
Net income								$	136,706	$	(19,137	)	$	117,569
Deferred income taxes									973		(9,363	)		(8,390	)
Accrued liabilities									22,571		28,500			51,071