Eco Building Products, Inc. Announces New Strategy Transitioning to Chemical Production and Sales

VISTA, CA--(Marketwired - Jan 14, 2016) -  Eco Building Products, Inc., (OTC PINK: ECOB) announced today that it is launching the next phase of its strategy to reposition the Company for profitable growth within the Wood Preservation Industry. In May of 2015 the Board of Directors acted to move the Company to chemical production, sales and coating services only and away from providing the raw commodity lumber for coating. The move greatly improved the Company's operating margins. The next phase is to narrow its focus further and leverage its core competencies in developing, producing and marketing ground breaking wood preservation chemistry.

"Eco has a proven chemistry with millions of installed board feet without a product claim. Eco Red Shield ™ is the only chemistry that protects wood against all four dimensions of structural risk -- mold, wood rot, termites and fire without strength degradation and it does so with an environmentally friendly formulation. Chemistry is the Company's core essence and this move plays to our strengths," said Tom Comery, Eco President and CEO.

The Company has an established Affiliate program where channel partners provide the coating services, while Eco provides chemical, quality assurance, code approvals and marketing support. Mr. Comery added, "Over the past six months, we have demonstrated that we can support and grow chemical sales through Affiliates; and Management believes we are at a point where we can confidently take the next step of exiting most of our coating operations. We have Affiliates in key geographies -- Virginia, Texas and Colorado -- and are in discussions with prospects in the Northeast, Pacific Northwest and California. Our focus with Company coating operations was to generate sufficient demand to attract Affiliate partners and we believe the Company is at that point in time."

The Company cited their successful AIA training program and the recent Code certifications as contributory to the decision.

"This move immediately improves our margins and reduces our operating expenses by 75%. Chemical production and sales is a much more efficient operating model that allows us to apply our resources and capital with a laser like focus," said Mr. Comery. Eco will close its facilities in Fairlawn, N.J and Tacoma, WA, consolidating coating operations, machinery and equipment at its Augusta, GA location. "Augusta is by far our lowest cost facility and allows us to maintain coating services to support sales in the south as well as trials of new products for other markets," said Mr. Comery.

Mr. Comery concluded by saying, "Wood preservation is a large market opportunity estimated to be between $4 and $6 billion. Management believes the Company's unique chemistry and go-to-market strategy positions it well for profitable penetration of the opportunity."

About Eco Building Products, Inc.

Eco Building Products, Inc. (Eco) is a manufacturer and coater of proprietary, environmentally responsible chemistry utilizing ECOB WoodSurfaceFilm™ and FRC™ technology (Fire Retardant Coating). Eco's products protect against fire, mold/mycotoxins, fungus, rot-decay, wood ingesting insects and termites. Eco is headquartered in Vista, CA and has operations in Tacoma, WA, Fairlawn, NJ and now Augusta, GA.

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