SOURCE: Ecosphere Technologies, Inc.

January 12, 2010 07:55 ET

Ecosphere Technologies Issues Letter to Shareholders and Reports Record Operating Revenue for Its Fourth Quarter of 2009

Fourth Quarter Revenue Exceeds $1,000,000 and December Revenue Exceeds $500,000

STUART, FL--(Marketwire - January 12, 2010) - Ecosphere Technologies, Inc. (OTCBB: ESPH), a diversified water engineering and environmental services company, today releases a shareholder update and announces record fourth quarter revenue.

To our shareholders,

I'd like to take this opportunity to thank all of our shareholders and the investment community for your support this past year. We are very pleased with the milestones that were achieved in 2009 and we strongly believe that 2010 will be a great year for the Company and our investors. We will continue to expand our "Total Frac Water Management" services in the natural gas industry, both domestically and internationally, through our majority owned subsidiary Ecosphere Energy Services. We will also be developing strategic partnerships to deploy our Ecosphere Ozonix technology in a wide variety of industrial and municipal wastewater applications.

2009-2010 Milestones:

--  Formed and capitalized a new subsidiary named Ecosphere Energy
    Services LLC (EES) to exclusively license and provide contract services for
    the Ecosphere Ozonix technology for global energy applications.
--  Completed five (5) revenue producing "water recycling" pilot programs
    to demonstrate our Ecosphere Ozonix technology to three (3) major natural
    gas exploration and production companies operating in Oklahoma, Utah,
    Arkansas, and Wyoming.
--  Our EES subsidiary secured two (2) long term service contracts with
    Newfield Exploration and Southwestern Energy to provide our EcosFrac and
    EcosBrine "Total Frac Water Management" services.
--  The Company completed the shipment of the first twelve EcosFrac EF600
    units to our subsidiary EES on November 15, 2009 to begin the EES long term
    services contract with Southwestern Energy to provide our EcosFrac services
    to eliminate biocides in frac water.
--  EES completed five (5) biocide-free fracs at Southwestern Energy in
    the month of December resulting in the highest month of operating revenues
    in the Company's history.
--  The Company completed shipment of a second set of twelve EcosFrac
    EF600 units to EES to service the Southwestern Energy contract on January
    9, 2010.
--  The Company generated over $1,000,000 in revenue for its fourth
    quarter ended 12/31/09, up 250% from $310,555 in its third quarter ended
    9/30/09 and up 778% from its fourth quarter ended 12/31/08. Over $500,000
    of the revenue was generated in December alone.
    

Moving into 2010 we are very excited about the acceptance of and demand for our Ecosphere Ozonix technology by major energy companies in the natural gas industry. The recent advancements in horizontal drilling techniques for unconventional shale plays using hydraulic water fracturing (fracing) has presented the United States with an unparalleled opportunity to decrease our dependency on foreign fossil fuels and will allow us to transition to a cleaner burning fuel. One of the major challenges facing this transition is that the hydraulic fracing process uses millions of gallons of water to fracture each well.

Our EcosFrac, EcosBrine, and EcosStim technologies enable natural gas exploration companies to eliminate biocides in their frac water and also recycle their flowback waters at the well site. This solves a major industry challenge and opens up an enormous opportunity for the Company worldwide. Given these facts, we are reaffirming our 2010 revenue guidance of $20 million.

Here are our primary goals for 2010:

--  Capture significant market share for our "Total Frac Water
    Management" services within the Woodford, Fayetteville, Marcellus,
    Haynesville, Eagle Ford, Bakken, and Barnett Shale's as well as the
    emerging International shale plays.
--  Develop strategic relationships to advance our Ecosphere Ozonix
    technology into other industrial and municipal waste water applications
    domestically and internationally.
--  Prepare to move up to the NASDAQ or NYSE/AMEX exchange.
--  Increase our exposure within the brokerage community and to
    institutional investors.
    

Again, I would like to thank all of our shareholders for their support and encourage everyone to visit our website at www.ecospheretech.com to keep up with the Company's progress.

Sincerely,

Dennis McGuire
Chief Executive Officer

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About Ecosphere Technologies:

Ecosphere Technologies, Inc. (OTCBB: ESPH) is a diversified water engineering and environmental services company primarily focused on the natural gas industry. The Company provides water-recycling services to provide clean water for energy companies to extract natural gas from unconventional shale plays. Ecosphere's mission is to identify, create and produce 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: www.ecospheretech.com.

Forward-Looking Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including our 2010 revenue guidance, the continued expansion of our "Total Frac Water Management" services, the development of strategic partnerships, to expand our Ecosphere Ozonix technology to other applications outside of the energy field, the acceptance and demand for our Ecosphere Ozonix technology by major energy companies in the natural gas industry and our primary goals in 2010. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the future price of natural gas, political issues which affect gas drilling, the continuation of the global recession, and future changes in environmental laws and regulations.

Further information on Ecosphere's risk factors is contained in its filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2008. Any forward-looking statement made by Ecosphere in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

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