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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: backman who wrote (69213)	4/1/2001 3:23:05 PM
From: Deeber	Respond to of 122087

ERTH got some good press over the weekend on various news shows, so I think it has more legs, at least at the open. The McDonald's news was huge to the company, something they have been waiting for a long time. It can only get better I think from here. It did not close weakly either, 2 1/2 was a very nice close. I bet it pops $3 easy tomorrow. EarthShell wraps up McDonald's deal 3/31/01 By MARK VAN DE KAMP / NEWS-PRESS STAFF WRITER Excitement rippled through EarthShell Corp. and its shareholders Friday after the company secured a long-term, much-needed deal with McDonald's Corp. The world's largest restaurant chain gave final approval to buy the Santa Barbara-based company's biodegradable containers, which were created for the Big Mac sandwich. The containers are made from reclaimed potato starch, natural limestone, recycled fiber, biodegradable polymer, wax coatings and water. It was a big day in the history of the local firm that has spent $194 million since 1992 to develop and perfect its special packaging. "Whoo-hooo! Fasten your McSeatbelt!" exclaimed one jubilant shareholder writing in an Internet chat room. Shares soared 91 percent Friday, closing at $2.50. Trading was extremely heavy at 5.6 million shares, far outpacing normal volume of about 200,000 shares. Shares of McDonald's finished up 6 cents to $26.55, a day after climbing $1.21. EarthShell stockholders are eagerly awaiting the resumption of trading Monday. The stock has a 52-week high of $5.19 and a year low of 75 cents. Shares traded around $21 in March, 1998. EarthShell announced the McDonald's deal after the markets closed Thursday, and after posting another financial loss for the fourth quarter and for 2000. Executives admit that a lot of people have been waiting a long time for the McDonald's deal. Things now look brighter. "This is the most significant development to date for our company," said Simon K. Hodson, chief executive officer. "We have achieved one of our primary goals by developing a package design which exceeds performance expectations and maintains all of the environmental attributes characteristic of EarthShell packaging." The company is preparing to deliver approximately 600 million of its Big Mac containers annually. They will be produced at a factory in Maryland. Hodson said cash burn has been greatly reduced in the areas of research and development and in operating costs. Introduced in Chicago locations last April, EarthShell's compostable hinged-lid packaging has been used to serve more than seven million Big Mac sandwiches. In approving the product design this week, McDonald's has extended congratulations to EarthShell Corporation and reiterated its intent to use the product in the United States based on continuing performance against expectations. Over the next several months, EarthShell will be working closely with the McDonald's system to expand product use. McDonald's is the world's leading global food service retailer, with more than 28,000 restaurants serving more than 45 million people each day in 120 countries.