Consolidated Ecoprogress Technology Inc.

Consolidated Ecoprogress Technology Inc.

July 08, 2005 09:15 ET

Consolidated Ecoprogress Technology Inc.: Binding Letter of Intent Signed with Yuji

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 8, 2005) - CONSOLIDATED ECOPROGRESS TECHNOLOGY INC. (TSX VENTURE:CES) is please to announce the Company has signed a binding Letter of Intent/Initial Agreement with Yuji Development of China.

The agreement, facilitated by Mercantile Consulting Ltd. of Vancouver (, provides the following:

- A shares for debt settlement where Ecoprogress will issue 1,510,000 shares at a deemed price of $0.20 and pays Yuji $50,000 cash as payment of commercialization, branding and intellectual property costs accrued on behalf of Ecoprogress in China. The settlement is for the commercialization of film and Flushaway product carried out by Yuji and delivered in early April 2005.

- A Sales and Distribution Agreement where Yuji will become an exclusive distributor in China, subject to Ecoprogress standard Sales and Distribution Agreement. Yuji is required to immediately place an order for C$200,000 for Flushaway on signing the Sales & Distribution contract.

- A Non-Exclusive Manufacturing Agreement where Yuji will become a preferred supplier of Flushaway, subject to lowest cost, best quality, best delivery and service.

The Sales and Distribution Agreement and the Manufacturing Agreement supersede the agreements previously signed with Champion in September 2004 and supersede the announcement made in February 2005 that anticipated acquiring a Newco spinoff from Yuji.

Yuji was instrumental in the commercialization of film and Flushaway by investing in specialized machinery, people and facilities as well as carrying out local materials selection, film production trials and many other activities.

Ecoprogress, Mercantile Consulting, and our strategic partner, Yuji, anticipate that sub-Agreements for the shares for debt, Sales & Distribution and Manufacturing Agreements will be refined and signed in the next few weeks.

Flushaway; as advertised in Western Grocer Magazine.

Ecoprogress is diligently working on becoming a lead player in environmentally friendly, absorbent and 'plastic replacement' products. Its first branded product, Flushaway, provides women with a flushable feminine hygiene alternative product that, after disposal biodegrades in 28 days.


John Banks, CEO and President

Consolidated Ecoprogress Technology Inc.

Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the private securities litigation reform act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filings with the TSX-V and on SEDAR.

The TSX Venture Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.

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