SOURCE: ECO2 Forests

ECO2 Forests Inc

June 17, 2010 08:52 ET

ECO2 Forests Commences Sweeping Changes

SACRAMENTO, CA and QUEENSLAND, AUSTRALIA--(Marketwire - June 17, 2010) - ECO2 Forests Inc. (PINKSHEETS: ECOF) today announces a series of sweeping changes and public disclosures. This information is being provided to ensure ongoing market disclosure requirements are maintained as the company moves forward with these changes for a clearer direction and to position ECO2 Forests to take advantage of potential new opportunities.

To enable stronger focus on the core objective of growing large-scale sustainable forest plantations, the first in a series of sweeping changes has seen ECO2 Forests' Founder, Martin Tindall, appointed as Interim Chief Executive.

"We are announcing a series of significant decisions today that have been reached to ensure our focus remains firmly on our core objective of growing sustainable forests around the world for large scale carbon sequestration and the production of sustainable lumber," Interim CEO Martin Tindall said.

Following a special board meeting held June 10, 2010 at the Australian Headquarters, the Board of Directors have elected to remove Collie Christensen as CEO and as a director. Mr. Christensen will no longer be involved in the operations or management of the company.

ECO2 Forests has decided to cancel a previous agreement with CarbonX Trade, Inc., a wholly owned subsidiary of Lakewood, CO based Green Ventures Future Fund for the sale of future carbon credits. This has been a result of a number of new opportunities presented to ECO2 Forests that the management of the company believe has the potential to deliver greater shareholder value and potentially future revenue generation from the sale of carbon credits, once certified, into the already active carbon trading markets.

In May 2010, ECO2 Forests announced that it had entered into an agreement for strategic investment by SycamorePark LLC. At this time, ECO2 Forests has rescinded this agreement, due to non-performance.

Previously, ECO2 Forests had entered into an agreement for the controlling interest in avoided deforestation projects with Forest Guard. It has been determined that this agreement will not be progressing any further and ECO2 Forests will not be pursuing any of the projects discussed in this previous agreement.

To further focus the business and provide streamlined global support, ECO2 Forests has commenced centralizing its operations to its Australian Headquarters while maintaining a satellite office in Boulder, Colorado.

"These decisions do not come lightly, and we are currently reviewing other possible changes. We feel that these positive changes need to be made in the interest of delivering greater shareholder value and allowing the company to meet its core objectives."

"We are committed to the long term viability of the business and delivering results for our shareholders and our other stakeholders and feel that for the company to strive for future successes, these hard decisions need to be made now. As new opportunities are being presented to us we feel that strategically it was the correct time to review our current position, evaluate and make necessary changes accordingly," Tindall said in closing.

About ECO2 Forests Inc.
ECO2 Forests is a progressive international forestation company focused on reforestation, afforestation and avoided deforestation projects for the generation of sustainable lumber and carbon credits to be sold into the already active global carbon trading and lumber markets.

The Company has adopted an 'E4 Philosophy' to achieve positive Environmental, Economic, Employment and Educational outcomes through its projects.

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Forward Looking Statements
This press release contains statements which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include fluctuation of operating results, the ability to compete successfully, and the ability to complete before-mentioned transactions. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes to future operating results.

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