Sweetheart Cup Company and EarthShell -R- Corporation Plan New Manufacturing and
Licensing
Agreement; $500 Million in Annual Revenue Targeted
Business Editors
OWINGS MILLS, Md. & SANTA BARBARA, Calif.--(BUSINESS WIRE)--May
17, 2002--Sweetheart Cup Company, Inc., the largest manufacturer of
single-use food service disposables in North America, and EarthShell
Corporation, (NASDAQ: ERTH), innovators of food service packaging
designed with the environment in mind, announced today the signing of
a letter of intent providing the basis for Sweetheart to be the
primary supplier of EarthShell Packaging(R) in North America.
Under the contemplated transaction EarthShell would provide an
exclusive royalty bearing license to Sweetheart for the first $500
million of annual sales of EarthShell Packaging sandwich containers,
cups, plates and bowls for the North American institutional and
consumer markets. Sweetheart intends to pursue the procurement of
sufficient equipment designed to manufacture such sales. Leading North
American machinery manufacturers have expressed a willingness to build
the necessary equipment under contracts that would provide performance
and quality guarantees.
Consistent with previously announced plans, EarthShell Corporation
is concluding the production of EarthShell Packaging sandwich
containers in Owings Mills, effective today. The production of
hinged-lid sandwich containers will be temporarily discontinued until
the new equipment lines are available.
"Over the past few years, we have become increasingly comfortable
that market demand for EarthShell products is significant," said Tom
Uleau, chief operating officer of Sweetheart Cup Company, Inc.
"Product performance has satisfied EarthShell customers during
extensive testing and initial commercial supply. The purchasing of a
guaranteed turnkey manufacturing system from reliable vendors will
provide an excellent opportunity to market EarthShell's products."
Sweetheart Cup Company is a leading force in providing high
quality disposable packaging to businesses and consumers. Management
believes the strength of its leadership position, coupled with a long
history of manufacturing and marketing expertise, will give Sweetheart
an important advantage as an EarthShell operating partner.
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 about Sweetheart Cup Company, please visit
www.Sweetheart.com.
For more information about EarthShell Corporation, please visit
www.earthshell.com.
This press release may contain "forward-looking statements" which
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks and uncertainties and actual results
could differ materially. Such risks and uncertainties include, but are
not limited to, general economic and business conditions, competitive
market pricing, increases in raw material costs, energy costs and
other manufacturing costs, fluctuations in demand for Sweetheart
Holdings, Inc. ("Sweetheart Holdings"), and its wholly owned
subsidiaries, products, potential equipment malfunctions and pending
litigation. For additional information, see the annual reports on Form
10-K/A of Sweetheart Holdings and Form 10-K of The Fonda Group, Inc.
for fiscal 2001. There can be no assurance that the transactions
contemplated by the above-referenced letter of intent will be
consummated.
This press release is for information purposes only and is not an
offer to buy or sell or the solicitation of an offer to buy or sell
any securities, and shall not constitute an offer, solicitation or
sale of any securities in any jurisdiction in which such offering or
sale would be unlawful.
--30--jeh/ny*
CONTACT: EarthShell Corporation
General Business & Media Inquiries:
Vincent J. Truant, 410/847-9420
www.earthshell.com
or
Sweetheart Cup Company, Inc.
Thomas Uleau, 410/998-2300
www.sweetheart.com
KEYWORD: MARYLAND CALIFORNIA
INDUSTRY KEYWORD: ENVIRONMENT FOODS/BEVERAGES FOREST PRODUCTS
MANUFACTURING RESTAURANTS
SOURCE: EarthShell Corporation
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May-17-2002 13:55 GMT
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