EarthShell Manufacturing Expansion Enabled by Equipment Guarantees
Business Editors
SANTA BARBARA, Calif.--(BUSINESS WIRE)--May 24, 2002--
EarthShell(R) Corporation (NASDAQ: ERTH), innovators of food service
packaging designed with the environment in mind, today announced that
its manufacturing partners will receive equipment performance
guarantees from certified equipment vendors, thus enabling rapid
expansion of production capacity for foam laminate plates, bowls,
hinged-lid containers and cups.
Four leading equipment manufacturers have submitted bids to build
EarthShell production lines, and each has agreed to provide guaranteed
performance levels. One of the equipment vendors, Detroit Tool and
Engineering, Lebanon, MO (NASDAQ: DTII) is the first to be under
contract to build five turnkey manufacturing lines with guaranteed
equipment performance. This is an important step in transitioning
production of EarthShell foam laminate products to manufacturing
partners, including Sweetheart Cup Company, Inc., Green Earth
Packaging, Inc. and Huhtamaki Oyj, each with protected market areas.
"Detroit Tool and Engineering is a certified builder, currently
building fully automated and integrated manufacturing systems for the
production of EarthShell foam laminate products," said Ken Cook, Vice
President, Sales and Marketing, Detroit Tool and Engineering. "DTE
will work directly with EarthShell manufacturing partners and
guarantee high levels of equipment performance."
The combined capacity of the four equipment vendors that have
submitted proposals, if approved by the manufacturing partner, would
be approximately 100 lines per year, with each line capable of
generating $5-6 million of EarthShell foam laminate product sales
annually. EarthShell Corporation royalties are based on the output
from each operating manufacturing line. The first six production lines
are under construction and scheduled for delivery by the end of the
next quarter.
Last week, EarthShell Corporation signed a letter of intent with
Sweetheart Cup Company providing the basis for Sweetheart to be the
primary supplier of EarthShell foam laminate products in North
America, with a target of $500 million, or approximately five percent
of the $10 billion U.S. food service disposables market. Concurrent
with this activity, the Huhtamaki Oyj /EarthShell Joint Venture in
Europe is assuming full responsibility for EarthShell manufacturing
operations in Germany, while Green Earth Packaging, Inc. will be
responsible for manufacturing operations in Utah and Malaysia.
"Guaranteed equipment performance has been one of our primary
objectives as part of transferring operations to our manufacturing
partners which will expand production capacity for EarthShell
products," said Simon Hodson, chief executive officer of EarthShell
Corporation.
EarthShell sandwich containers, plates and bowls are designed with
the environment in mind. Developed over many years using a "life cycle
inventory" and in consultation with leading environmental experts,
EarthShell products 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 poses substantially
fewer risks to wildlife than 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, the company has recently introduced flexible packaging in
the form of sandwich wraps that also have been developed using a "life
cycle inventory." Like EarthShell's rigid packaging, the wraps also
biodegrade when exposed to moisture in nature 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 website 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.
--30--rc/ny*
CONTACT: EarthShell Corporation
General Business & Media Inquiries:
Vincent J. Truant
Chief Marketing Officer
(410) 847-9420
www.earthshell.com
or
Euro RSCG Middleberg
Media Inquiries:
Steven Ertel
(212) 699-2524
earthshell@middleberg.com
or
EarthShell Corporation
Investor Inquiries:
Scott Houston
Chief Financial Officer
(805) 897-2218
www.earthshell.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: CHEMICALS/PLASTICS FOODS/BEVERAGES
FOREST PRODUCTS MANUFACTURING RESTAURANTS
SOURCE: EarthShell Corporation
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May-24-2002 14:19 GMT
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Source BW Business Wire
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