To: Terry Jackson who wrote (137 ) 11/9/1998 11:57:00 AM From: GREATMOOD Respond to of 409
Here's today's Press Release EarthShell Corp. to Partner With Key U.S. Packaging Manufacturer BALTIMORE--(BUSINESS WIRE)--Nov. 9, 1998-- EarthShell And Prairie Packaging Propose Plan to Commercialize Environmentally-Responsible Disposable Packaging For Food Service Industry EarthShell Corp. (Nasdaq:ERTH) Monday announced that it has signed a Letter of Intent with Prairie Packaging, Chicago, a growing national manufacturer of disposable cups, plates and cutlery. The two companies plan to enter into an agreement to commercialize and market a full range of food service disposables made from the new EarthShell proprietary and environmentally responsible material. According to Bill McLaughlin, EarthShell president and chief operating officer, "Prairie is a dynamic partner with a reputation for quality, service and growth in the food service disposables industry." Prairie's largest customer is industry leader SYSCO, the $15 billion plus U.S. food service marketing and distribution firm. For the past three years, Prairie has been one of SYSCO's Outstanding Supplier award winners. "An EarthShell-Prairie agreement can open up exciting new channels for EarthShell to reach the institutional food service market," McLaughlin said. "By providing access to SYSCO's customer base of more than 300,000 restaurants, health care and educational institutions, lodging establishments and other food service operations, our relationship with Prairie and SYSCO has the ability to provide widespread penetration of the EarthShell product." Prairie President Earl Shapiro said his company is very excited about EarthShell packaging for a variety of reasons. "The EarthShell material delivers both functional and environmental advantages over traditional food service packaging, with significant potential to meet a wide range of needs," Shapiro said. "We feel strongly that the commercialization of this product will be enormously successful, and we look forward to working with our new partners at EarthShell to capitalize on this opportunity." For its part, SYSCO sees EarthShell as a breakthrough in disposable packaging that will have broad appeal with its customers in North America. John Locke, vice president, merchandising for SYSCO, said: "We are quite impressed by EarthShell Corporation's products and the opportunity to enable our customers to be in the forefront with this new environmentally responsible packaging. "We applaud EarthShell's efforts in this development and support its endeavor to offer our customers a unique alternative to traditional food service disposable packaging." EarthShell and Prairie contemplate that the proposed partnership would manufacture EarthShell products at a dedicated facility in the Chicago area. It is anticipated that the new plant would be completed by the end of 1999, with products shipped early the following year. EarthShell signed a letter of intent last month with Helsinki-based Huhtamaki to establish a joint venture to commercialize EarthShell products throughout Europe, Asia (except Japan), Australia and New Zealand. Huhtamaki's annual global packaging sales amount to approximately US$1.0 billion. Recently recognized with the Innovation in Real Materials Award by the International Union of Research Societies, EarthShell packaging is made from such abundant and natural ingredients as limestone, potato starch, fiber and water. Products made from the material -- such as cups, plates, bowls and sandwich containers -- offer excellent functionality, yet when crushed and exposed to water, they break down to their base materials within hours. As a result, EarthShell products are biodegradable in both household and commercial-scale composting applications. With headquarters in Baltimore, EarthShell Corp. is engaged in the licensing and commercialization of proprietary composite materials for the manufacture of disposable packaging such as cups, plates, bowls and hinged-lid containers for the food service industry. This news 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 or other factors that 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 Prospectus and other documents filed by the company with the Securities and Exchange Commission. CONTACT: Paine & Associates, Beverly Hills John Barksdale, 310/288-5526 jbarksdale@painepr.com KEYWORD: MARYLAND ILLINOIS BW0142 NOV 09,1998 6:18 PACIFIC 09:18 EASTERN