SOURCE: Green EnviroTech Holdings Corp.

Green EnviroTech Holdings Corp.

May 26, 2011 08:00 ET

Green EnviroTech Holdings Corp. Completes Acquisition of Hong Kong-Based Magic Bright Ltd. With Over $28 Million in Annual Revenue

Combined Company to Deliver Industry Defining Business Model

NEW YORK, NY--(Marketwire - May 26, 2011) - Green EnviroTech Holdings Corp. (OTCBB: GETH), a company at the forefront of waste plastics recovery and recycling, announced today the details of its acquisition of Magic Bright Limited, a leading Hong Kong-based waste plastics recycling and trading company with the filing of an amended 8K.

The acquisition provides Green EnviroTech the scale and resources to deliver industry leading products that address the significantly expanding US$50 billion global market for recycled plastic products. The transaction, which is valued at approximately $6 million and is being financed with cash and stock, will help achieve Green EnviroTech's goal of capturing a significant portion of the global market for products derived from shredder residue. Management teams from both parties have already begun to execute the integration of the two companies' products, technologies and customers to ensure a smooth transition that will deliver immediate value to investors.

In the U.S. alone, Green EnviroTech intends to redefine waste plastics recycling by processing and selling a large amount of the approximate 1.25 million tons of recovered materials from the auto shredder residue generated annually by metal recyclers. Through the acquisition, Green EnviroTech gains immediate access to Magic Bright's vast distribution channels in Asia including into China's lucrative markets where the demand for recycled plastics even exceeds that of the U.S.

Magic Bright has secured long term distribution contracts in mainland China and has consistently reported annual gross revenues in excess of US$28 million for each of the past 3 years, and is anticipated to generate revenues amounting to US$40 million its first year after acquisition by using increased marketing and investing additional working capital. Furthermore, Green EnviroTech is not expecting the cost of the acquisition to have a negative impact on its 2011 GAAP EPS.

Gary De Laurentiis, CEO and Chairman of Green EnviroTech Holdings Corp., stated that "the acquisition of Magic Bright should be immediately beneficial to shareholders as the combined company will not only enjoy operational synergies, but also a vastly strengthened balance sheet with a solid asset base and significant recurring revenues for years to come."

About Green EnviroTech Holdings Corp.

Green EnviroTech Holdings Corp. is a plastics recovery and recycling company which removes contaminants from recovered plastic recaptured from end of life automotive vehicles shredded for their metal. Green EnviroTech Holdings Corp. processes this recovered plastic to produce compounded plastic resin and light sweet crude oil as end products. Its unique patented process significantly reduces the amount of shredder residue going to landfills by up to 40 percent creating considerable cost savings for metal recyclers while also dramatically reducing the volume of materials going to the landfill. The Company has developed long term strategic partnerships that allow it to receive feedstock at near zero cost and has also leveraged its patented technology to ensure guaranteed sale of 100% of its production output thereby creating a sustainable and high margin business model. A valuable by-product of the Green EnviroTech process is commercial grade, sweet crude oil that will also be sold to industry at market prices. For more information please visit www.greenenvirotech.com.

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