SOURCE: Ecosphere Technologies, Inc.

October 10, 2007 08:00 ET

Ecosphere Technologies Closes $8 Million Cleantech Sale

STUART, FL--(Marketwire - October 10, 2007) - Ecosphere Technologies, Inc. (OTCBB: ESPH), a diversified clean technology and services company, today announced that it closed the previously announced sale of its patented robotic coating removal process for the marine industry to a private equity firm for $8 million. The private equity firm formed a new company to market the patented clean technology for the marine industry.

This sale is further validation of the Company's business model and mission to identify and create clean technologies that solve a significant industry challenge, improve the quality of the environment, and are economically viable. Ecosphere incubates clean technologies, from filing patents and manufacturing prototypes to full commercialization. Once a technology is proven, Ecosphere aggressively pursues an industry-leading strategic partner to drive the technology into the cleantech marketplace.

Dennis McGuire, CEO, stated, "This important sale of a patented cleantech product signifies that a major investment fund is making the investment in cleantech solutions not only to comply with environmental regulations but also to provide a solution which is cost competitive in global markets."

This sale exemplifies Ecosphere's commitment to solving environmental challenges in business and industry worldwide. Ecosphere presently has an inventory of clean technology products including related robotic technology for other markets that are available for immediate purchase and licensing to help companies meet federal guidelines for environmental preservation and compliance.

Chief Financial Officer, J. C. 'Jim' Rushing III, commented, "This landmark sale strengthens Ecosphere's balance sheet, and provides Ecosphere with the ability to benefit in the success of the buyer as a partner in the new company. In addition to the $6.2 million in cash and the buyer's assumption of $1.535 million in Ecosphere's liabilities, Ecosphere was issued a five percent ownership interest in the buyer's new company at closing. Everybody benefits in the sale; Ecosphere, the buyer, and the environment. The completion of this patent sale signals that Ecosphere Technologies is a viable generator and vendor of patented clean technologies."

About Cleantech

Cleantech, as defined by the Cleantech Network, a leading industry trade group, is new technology and related business models offering competitive returns for investors and customers while providing solutions to global challenges. According to the Cleantech Network, where greentech, or envirotech, represents the highly regulatory driven, "end-of–pipe" technology of the past with limited opportunity for attractive returns, Cleantech is driven by market economics therefore offering greater financial upside and sustainability. The concept of Cleantech embraces a diverse range of products, services, and processes across industry verticals that are inherently designed to:

--  Provide superior performance at lower costs
--  Greatly reduce or eliminate negative ecological impact
--  Improve the productive and responsible use of natural resources

About Ecosphere Technologies

Ecosphere Technologies, Inc. (ESPH), is a diversified clean technology and services company dedicated to creating products that make life better. Ecosphere's mission is to identify, create and incubate clean technologies that solve a significant industry challenge, improve the quality of life and the environment, and are economically viable. Ecosphere has an extensive portfolio of patented clean technologies that can be purchased and licensed for use in large-scale and sustainable applications across industries, nations and ecosystems. For more information, please visit:

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Safe Harbor

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act") including the future sale of clean technologies. Additionally, words such as "seek," "intend," "believe," "plan," "estimate," "expect," "anticipate" and other similar expressions are forward-looking statements within the meaning of the Act. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include the ability of Ecosphere to attract buyers for its remaining technologies, complete the development of some of the technologies, and continue developing innovative cleantech solutions. Further information on Ecosphere's risk factors is contained in its filings with the Securities and Exchange Commission, including the prospectus filed February 1, 2007, as supplemented, the Form 10-KSB for the year ended December 31, 2006 and the Form 10-QSB filed August 14, 2007.6. Ecosphere does not undertake any duty nor does it intend to update the results of these forward-looking statements.

Contact Information

  • Contacts:
    Ecosphere Technologies, Inc.
    Alex Rivera
    Wall Street Resources, Inc.
    Gerald Kieft