EarthShell in Joint Venture for Composite Food Packaging
BALTIMORE, Dec. 10 - EarthShell Corporation (NASDAQ:ERTH) announced today that the anticipated definitive joint venture agreement with Prairie Packaging, Inc., Chicago, IL, has been signed to commercialize and market a broad range of the environmentally preferable EarthShell Packaging products. The definitive agreement calls for all costs to be shared equally in the construction of the EarthShell/Prairie joint venture manufacturing capacity. The focus will be on producing a second generation of EarthShell Packaging for distribution in the U.S. through SYSCO Corporation, the largest foodservice distributor in North America.
Prairie is a major supplier to industry leader SYSCO, the $18 billion U.S. food service marketing and distribution firm with over 300,000 institutional food service customers throughout North America. John Locke, SYSCO's Vice President for Merchandising, said, "We take pride in always being a step ahead of customers' needs. The innovative products Prairie and EarthShell will be introducing over the next few years will meet our customers' growing demand for functional packaging that makes good environmental sense."
Earl Shapiro, President of Prairie Packaging, said, "We believe that the unique, compostable EarthShell Packaging will have a huge influence on our industry. Given the growing demand for disposables with the functional and environmental advantages of EarthShell, we believe this joint venture has the potential to be very successful for both our companies."
Vincent Truant, Senior Vice President, Marketing, Environmental Affairs and Public Relations of EarthShell Corporation, said, "Prairie is an excellent partner for EarthShell with an impressive reputation and a long history in the foodservice packaging industry. Their strong relationship with Sysco will help us introduce a wide range of EarthShell products to restaurants, healthcare and educational institutions, lodging establishments and other food service operations."
Prairie and EarthShell will immediately begin planning their joint EarthShell/Prairie manufacturing facility. This facility will be designed to produce plates, bowls, cups and hinged-lid containers.
EarthShell Packaging is considered an environmentally preferable alternative made from a new-to-the-world composite material, which consists primarily of abundant limestone, potato starch, water and protective coatings. The manufacturing process is clean and energy efficient. It uses less total energy and results in low greenhouse gas emissions when compared to traditional rigid packaging. EarthShell products perform equal to or better than conventional materials -- they are rigid, strong and provide good insulation. EarthShell Packaging biodegrades in marine and composting environments, and is recyclable through composting.
EarthShell Corporation is engaged in the licensing and commercialization of proprietary composite material technology for the manufacturer of disposable packaging, such as cups, plates, bowls, and hinged-lid containers. EarthShell Packaging possesses competitive cost and performance features compared to other foodservice packaging materials, and also provides important environmental attributes.
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.
Contact: Media - Vincent J. Truant, Senior Vice President, 410-949-1310, Investors - Scott Houston, Chief Financial Officer, 410-949-1300, both of EarthShell Corporation; or James Ankner of Robinson Lerer & Montgomery, 212-484-7697, for EarthShell Corporation