after over 70% move back up, off 5% today... "News" that prompted that last move up;
Press Release Source: EarthShell Corporation
Green Earth Packaging Begins Production of EarthShell Products
GEP Assumes Goleta Operations While Building Production At Permanent U.S. Facility
Tuesday September 10, 9:42 am ET
SANTA BARBARA, Calif. & DALLAS--(BUSINESS WIRE)--Sept. 10, 2002--EarthShell® Corporation (NASDAQ: ERTH - News) and Green Earth Packaging, Inc. announced today that effective immediately, Green Earth Packaging (GEP) will assume responsibility for all production at the EarthShell facility in Goleta, California, and will now begin commercial production as an EarthShell licensee.
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The Goleta manufacturing operation was developed by EarthShell Corporation and has been producing plates and bowls for EarthShell Packaging® customers such as the Department of the Interior, Sodexho and others throughout the country. Green Earth Packaging assumes responsibility for the Goleta manufacturing operations following demonstration that the production lines are running at commercial levels and product meets quality standards. GEP will also continue to produce plates and bowls for Wal-Mart at the Goleta facility while it builds production at its permanent U.S. manufacturing location. Today's announcement continues to demonstrate the successful transition of manufacturing operations from EarthShell Corporation to its operating partners as part of its business plan.
"Over the past several months we have contacted many customers in our market territory; they have a strong desire to purchase EarthShell products as soon as our production capacity comes on line. We are committed to aggressively build production to meet this market demand. Environmental products of this type make good sense for business and consumers everywhere," said Datuk Dr. Philip Ling, chairman of Green Earth Packaging, Inc. and Green Packaging (GP), sister companies licensed to produce EarthShell products. "We have been diligent in understanding EarthShell's revolutionary technology and environmentally preferable packaging. Our decision to begin production in the EarthShell Goleta facility and expand our investment in manufacturing EarthShell products underscores our desire and interest to be a leading EarthShell operating partner. We believe this business will be very profitable," said Ed McDonald, chief executive officer of Green Earth Packaging, Inc.
GEP plans for the U.S. facility to be operational in the first quarter of next year. This new facility will further enable GEP to service select segments of the U.S. food service disposable market. The target of GEP and GP is to build capacity to produce more than one billion units of EarthShell products annually, estimated at more than $50 million of market sales, with significant initial volume beginning next year. According to the licensing agreements, Green Earth Packaging and Green Packaging will pay EarthShell Corporation a royalty for all EarthShell products sold.
"EarthShell has completed what we promised the market by delivering to our partners and their customers a technology that makes possible the production of a new class of environmentally preferable products that can be sold at competitive prices and deliver a new level of profitability to this industry. We are very pleased to have finally reached this turning point," said Essam Khashoggi, chairman of EarthShell Corporation. "The commitment of GEP and GP to build these major production facilities is important evidence of their commitment to the viability of this revolutionary technology and products," said Vincent J. Truant, president and chief operating officer of EarthShell Corporation. "This will place them in an excellent position to begin supplying product to meet growing market demand for EarthShell products. GEP understands our technology and its value in today's market for food service disposable packaging with a significantly improved environmental profile compared to traditional packaging." |
