NOTE A1 — RESTATEMENT

The unaudited quarterly financial data for the three and nine months ended September 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 quarter ended September 30, 2015 was overstated by $28.5 million resulting in an understatement of net income of $17.2 million for the three months ended September 30, 2015. Net income was overstated by $2.0 million for the nine months ended September 30, 2015.

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 nine months ended September 30, 2015 (Unaudited).

Condensed Consolidated Statement of Income
	Three Months Ended September 30, 2015								Nine Months Ended September 30, 2015
	As Reported			Adjustment			Restated		As Reported		Adjustment				Restated
Selling, general and administrative expenses (exclusive of depreciation and amortization)	$	185,932		$	(28,500	)	$	157,432	$	509,047	$	-			$	509,047
Total costs and expenses		618,340			(28,500	)		589,840		1,760,531		-				1,760,531
Income from operations		100,256			28,500			128,756		337,073		-				337,073
Income before income taxes		81,124			28,500			109,624		280,751		-				280,751
Income tax expense		28,404			11,314			39,718		91,325		1,951				93,276
Net income		52,720			17,186			69,906		189,426		(1,951		)		187,475
Net income attributable to Stericycle, Inc. Common Shareholders		50,579			18,870			69,449		186,486		(267		)		186,219
EPS – basic		0.60			0.22			0.82		2.19		-				2.19
EPS – diluted		0.59			0.22			0.81		2.16		-				2.16

Condensed Consolidated Statement of Comprehensive Income
	Three Months Ended September 30, 2015								Nine Months Ended September 30, 2015
	As Reported			Adjustment			Restated		As Reported		Adjustment				Restated
Net income	$	52,720		$	17,186		$	69,906	$	189,426	$	(1,951	)		$	187,475
Comprehensive income/ (loss)		(2,432	)		17,186			14,754		90,735		(1,951	)			88,784
Comprehensive income/ (loss) attributable to Stericycle, Inc.		(4,076	)		17,186			13,110		89,343		(1,951	)			87,392

Condensed Consolidated Statement of Cash Flows
	Nine Months Ended September 30, 2015
	As Reported			Adjustment			Restated
Net income	$	189,426		$	(1,951	)	$	187,475
Deferred income taxes		(17,169	)		1,951			(15,218	)