SOURCE: ECO2 Forests Inc.

ECO2 Forests Inc

November 04, 2009 09:00 ET

ECO2 Forests Inc. Increase Kiri Tree Nursery Stock Supply

SACREMENTO, CA and QUEENSLAND, AUSTRALIA--(Marketwire - November 4, 2009) - ECO2 Forests Inc. (PINKSHEETS: ECOF), an international sustainable forestry company focused on reforestation and carbon sequestration projects, has announced a five-year contract with Empress Trees to supply Kiri Tree nursery stock for planting in its Global Forestry Plan projects for the next five years.

The contract will see an immediate supply of nursery stock for the recently acquired ECO2 Forests Research and Development Centre (RDC) in Jimboomba, Queensland. Empress Trees will also closely collaborate with the RDC in further development and linear selection of the species and in the refinement of nursery-stock matrices and mass propagation techniques.

"This contract with Empress Trees positions ECO2 Forests well for the coming planting season in the Asia Pacific Region and in Australia. We are currently finalizing the evaluation of a number of projects, which will provide the opportunity for us to begin planting in this growing season from November through to March," Chief Operating Officer Ray Smith said today.

Empress Trees will propagate and supply 150,000 nursery stock seedlings for the RDC alone, where ECO2 Forests will grow a small scale Kiri Tree forest for R&D purposes based on the Global Forestry Plan planting systems, as well as develop its own nursery stock generation capability to back up Global Forestry Plan projects.

Nursery stock supply is expected to reach 3 million in years two and three of the contract. Flexibility in the ECO2 Forests nursery stock generation process allows rapid production increases to meet surge requirements for new and additional projects as and when required.

"The Kiri Tree is an extremely durable species which allows direct nursery stock distribution from the RDC to projects around the world for immediate planting. This process allows us to plant the moment the land is ready for the Kiri trees, ensuring we optimize each stage of the Global Forestry Plan," added Smith.

The Kiri Tree is a deciduous hardwood tree developed by ECO2 Forests consultants over the last 20 years for implementation in the company's Global Forestry Plan and is the ideal sustainable alternative to most traditional forestry projects. The Kiri Tree grows remarkably quickly, typically growing 30-35 feet (10-12 meters) in the first growing season.

After the first growth season, the leaves on a tree can grow up to a meter wide, absorbing up to ten times as much carbon dioxide (CO2) from the atmosphere as other trees.

This huge level of carbon sequestration will allow a single Kiri Tree, at full maturity, to have sequestered more than two tons of CO2. The carbon sequestration generates carbon credits which ECO2 Forests intends to sell through carbon markets to help governments and organizations to meet their carbon emission reduction targets.

After 3-5 years, the Kiri reaches up to 65 feet (20 meters) on average. The trunk then thickens to yield up to 2.5 cubic meters of timber after 7-8 years.

"As global demand for timber, and in particular sustainably managed timber, continues to rise, and carbon emissions continues to become a critical part of everyday business, ECO2 Forests, with the Global Forestry Plan and the Kiri Tree, is strongly positioned to capitalize on this demand as our Global Forestry network expands," Ray Smith said.

About ECO2 Forests Inc.

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

Our unique Intellectual Property vested in 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 ensure positive Environmental, Economic, Employment and Educational outcome is achieved in all of its reforestation projects.

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