SOURCE: Ecosphere Technologies, Inc.

April 16, 2009 08:00 ET

Ecosphere Technologies and Bledsoe Capital Group Execute Option Agreement to Partner in the Energy Business

BCG Increases Current Investment to $3.25 Million in Ecosphere

STUART, FL--(Marketwire - April 16, 2009) - Ecosphere Technologies, Inc. (OTCBB: ESPH), a diversified water engineering and services company, today announced that Bledsoe Capital Group LLC increased its investment in Ecosphere Technologies to $3.250 million at the close of business April 15, 2009. The agreements signed between Bledsoe Capital Group and Ecosphere provide Bledsoe Capital with the option to license the Ecosphere technology in North America for $5 million commencing no later than October 2009 and a further $5 million for international and offshore applications commencing no later than October 2010. Upon exercise, Bledsoe will commit up to $12.5 million in funding for working capital and R&D to be invested in the new entity with Bledsoe and Ecosphere as joint owners. More detailed information of the Agreements can be found in Ecosphere's Form 8-K to be filed on April 20, 2009.

Bledsoe Capital has provided funding for the past year to Ecosphere Technologies to further its development of the Ecosphere Ozonix and EcosFrac technologies to recycle industrial waste water in the natural gas exploration business. Bledsoe Capital and its partners have made numerous trips to Texas and Oklahoma to witness Ecosphere's equipment working under actual field conditions and met with the major energy customers paying for Ecosphere's water recycling services under two different pilot programs.

Patrick Haskell, CEO of Ecosphere Technologies, stated, "Ecosphere is privileged to be working with Bledsoe Capital and appreciate its ongoing commitment to our Company and the water treatment technologies we continue to develop for the energy business. Bledsoe Capital's financial commitment has allowed us to build, test, and quantify the Ecosphere Ozonix and EcosFrac technologies in the energy business. Bledsoe's continued financial commitment to Ecosphere will allow us to further develop our technologies which will assist an energy company to not only reduce their operational costs by decreasing transportation and chemical costs, but also increase well production using our Ecos Brine to frac their wells."

Drew Bledsoe, Founder and Principal of Bledsoe Capital Group, stated, "Bledsoe Capital is committed to taking this next step with Ecosphere to fund the launching of the licensing program for the Ecosphere Ozonix and EcosFrac technologies in the energy business. We have worked very closely with Ecosphere personnel and their customers for the past year and have reached the conclusion that Ecosphere's high volume mobile water treatment technologies are the right solution for the energy business. Ecosphere's technologies are cost effective, and environmentally friendly. That is a win, win in this economy."

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About Ecosphere Technologies

Ecosphere Technologies, Inc. (OTCBB: ESPH) is a diversified water engineering and 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.

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 investment of up to $12.5 million. 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 future condition of the capital and credit markets and the future price of natural gas. 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. Ecosphere does not undertake any duty nor does it intend to update the results of these forward-looking statements.

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