EarthShell Corporation to Expand Manufacturing Capacity Through New Licensees
Business Editors
SANTA BARBARA, Calif.--(BUSINESS WIRE)--Dec. 5, 2001--
Green Earth Packaging, Inc. and Green Packaging SDN BHD to Invest $30
Million For EarthShell Packaging(R) in U.S. and Asian Markets
EarthShell Corporation (NASDAQ:ERTH), innovators of food service
packaging designed with the environment in mind, announced today at
the World Resources Institute's Fifth Annual Sustainable Enterprise
Summit in Washington, D.C. that it has licensed the EarthShell
technology to Green Earth Packaging, Inc. and Green Packaging SDN BHD.
The two entities, formed specifically to expand commercialization
of EarthShell Packaging in the United States and Asia, are
subsidiaries of Dominance, Inc., part of a Malaysian group of
companies with over 50 years of manufacturing experience. As part of
the agreements, the two licensees will initially invest a minimum of
$30 million to fund the building of manufacturing capacity.
"Consumers are increasingly demanding products with greater regard
for the environment, and we see tremendous opportunity in the United
States for alternatives to disposable paper and plastic food service
packaging," said Ed McDonald, chief executive officer of Green Earth
Packaging, Inc. "With the environment in mind, EarthShell has
developed a unique approach to food service packaging. The proven
technology, along with the excellent performance attributes and
competitive price, we believe is an excellent foundation for success."
Green Earth Packaging plans to produce plates and bowls for U.S.
markets, while Green Packaging will produce noodle bowls for certain
Asian markets. All products will be marketed under the EarthShell
Packaging brand.
"As the effects of industrialization begin to impact regions
throughout Asia, interest has grown in biodegradable products to
address the problems of consumer waste - particularly in densely
populated areas," said Datuk Dr. Philip Ling, chairman of Green
Packaging. "Asian markets use more than 80 billion paper and
polystyrene noodle bowls annually. EarthShell offers a compelling
alternative to commercially available disposable food service
packaging and we anticipate rapidly developing EarthShell Packaging
noodle bowls and delivering them to these markets."
Both Green Earth Packaging and Green Packaging have agreed to
develop facilities and plan to begin commercial shipments during the
first quarter of 2002. The companies have also agreed to provide all
core functions including accounting, sales, marketing and
distribution.
"The Dominance Industries family of companies has significant
engineering and manufacturing expertise, and a track record of rapidly
commercializing new technologies," said Simon K. Hodson, president and
chief executive officer of EarthShell Corporation. "Today's
announcement is part of our strategy to expand manufacturing worldwide
and to meet the ever-increasing demand for EarthShell Packaging.
Dominance is the first group outside of the food service packaging
industry to independently verify the potential of the EarthShell
technology. Their investment, which is evidence of their confidence in
the business opportunity, will create an annual production capacity of
nearly two billion units, or approximately $75 million."
EarthShell Packaging sandwich containers, plates and bowls were
designed with the environment in mind. They were developed over many
years using a Life Cycle Inventory and in consultation with leading
environmental experts to reduce the environmental burdens of rigid
food service packaging through the careful selection of raw materials,
processes and suppliers.
The products are made primarily from natural limestone and potato
starch. The new packaging substantially reduces risk to wildlife
compared to polystyrene foam packaging because it biodegrades when
exposed to moisture in nature, physically disintegrates in water when
crushed or broken and can be composted in a commercial facility (where
available) or in your backyard.
In addition to EarthShell Corporation's rigid packaging, the
company has recently introduced flexible packaging in the form of
sandwich wraps that also have been developed using a Life Cycle
Inventory. The wraps biodegrade when exposed to moisture in nature,
physically disintegrate in water and can be composted in a commercial
facility (where available) or in your backyard.
EarthShell Corporation is engaged in the licensing and
commercialization of proprietary composite material technology for the
manufacture of foodservice disposable packaging, including cups,
plates, bowls, hinged-lid containers, and sandwich wraps.
In addition to certain environmental characteristics, EarthShell
Packaging is designed to be cost and performance competitive compared
to other foodservice packaging materials.
For more information, please visit our web site at
www.earthshell.com.
This press release may contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve known and unknown risks,
uncertainties of other factors which may cause actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements.
Factors that might cause such a difference include, but are not
limited to, those discussed in the Management's Discussion and
Analysis of Financial Condition and Results of Operations in the
Company's most recent Form 10-K and other documents filed by the
Company with the Securities and Exchange Commission.
www.earthshell.com
--30--RM/ph*
CONTACT: EarthShell Corporation
Media Inquiries:
Vincent J. Truant, 410/847-9420
or
Alcalde & Fay
Kevin Fay, 703/841-0626
fay@alcalde-fay.com
or
EarthShell Corporation
Investor Inquiries:
Caroline Leakan, 805/897-2218
investor@earthshell.com
KEYWORD: CALIFORNIA DISTRICT OF COLUMBIA
INDUSTRY KEYWORD: ENVIRONMENT FOODS/BEVERAGES FOREST PRODUCTS
GOVERNMENT MANUFACTURING
SOURCE: EarthShell Corporation
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
Dec-05-2001 17:06 GMT
Symbols:
US;ERTH
Source BW Business Wire
Categories:
MST/R/US/CA MST/R/US/DC MST/I/POL MST/I/FOD MST/I/FOR MST/G MST/I/ICS |
