The approach of 't Hooft to the puzzles of black hole evaporation can be applied to a simpler system with analogous features. The system is $1+1$ dimensional electrodynamics in a linear dilaton background. Analogues of black holes, Hawking radiation and evaporation exist in this system. In perturbation theory there appears to be an information paradox but this gets resolved in the full quantum theory and there exists an exact $S$-matrix, which is fully unitary and information conserving. 't Hooft's method gives the leading terms in a systematic approximation to the exact result.

18 pages, 3 figures (postscript files available soon on request), (earlier version got corrupted by mail system)