SOURCE: ECO2 Forests Inc.

ECO2 Forests

February 01, 2010 06:01 ET

ECO2 Forests to Acquire Controlling Interest in Forest Guard Inc. Projects

SACRAMENTO, CA--(Marketwire - February 1, 2010) - ECO2 Forests Inc. (PINKSHEETS: ECOF), announced today that it has entered into an agreement to acquire controlling interest in certain projects of Forest Guard Inc., a privately held company specializing in for profit Avoided Deforestation projects.

Following the acquisition, ECO2 intends to realize revenue from the sale of carbon credits generated by the development stage and future projects of Forest Guard Inc. in Mexico and Brazil as well as from other targeted projects that the company is now reviewing.

Avoided Deforestation can be described as the formation of reservations to protect existing old growth forests from being cleared. As a result, revenue is created from the sale of the carbon credits generated from the forest absorbing carbon dioxide as it continues to grow and prevents the release of carbon dioxide into the atmosphere.

The aim of Avoided Deforestation is biodiversity and to protect existing forests thereby reducing carbon emissions, at the same time stimulating local economies and providing an income by other means than by clearing the forest.

Collie Christensen, ECO2 Forests CEO, stated, "Acquiring Forest Guard is a significant and decisive transaction in the growth of ECO2. We expect it will further strengthen our position in the highly lucrative carbon trading market as well as provide traction within the REDD (Reduce Emissions from Deforestation and Degradation) scheme agreed to in Copenhagen 2009."

Forest Guard currently offers tropical rainforest investment origination, land acquisition, land use rights, project development, ongoing property management, and verification and trading of carbon credits. The expansion is a strategic move for ECO2 Forests allowing the Company to combine established Reforestation and Afforestation projects with Avoided Deforestation projects worldwide.

"The addition of Forest Guard to our strategic plan allows us to develop additional carbon markets that will help channel our financial position towards cost-effective ways of reducing greenhouse gas emissions. ECO2 Forests intends to continue to expand its portfolio of environmentally focused forest projects," said Christensen.

Andre Mech, Director of Forest Guard Inc., noted, "We are delighted to be on board and bring additional resources to the ECO2 team. We believe that rainforests left in place are extremely valuable and important to mankind. Our commitment is to the reduction of greenhouse gas emissions that result from the deforestation of standing forests. Under the ECO2 banner, we plan to seek out tropical rainforests that are under land use pressure and rich in biodiversity to add to our portfolio and develop additional carbon markets for ECO2."

About ECO2 Forests Inc.

ECO2 Forest Inc. (PINKSHEETS: ECOF) is an international sustainable forestry company focused on reforestation projects under our Global Forestry Plan for a positive environmental and economic impact through large scale bio-sequestration of carbon dioxide greenhouse gases, the generating of carbon credits for resale and the eventual growth and sale of sustainable timber to global markets.

In Management's view, our focus on the proprietarily developed intellectual property regarding Kiri tree reforestation positions the Company well to take advantage of the emerging demand for renewable forests and the escalating carbon credit market.

Headquartered in Sacramento, California, the Company has adopted an 'E4 Philosophy' to achieve positive Environmental, Economic, Employment and Educational outcomes through its reforestation projects.

For more information please visit www.eco2forests.com.

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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