reWORKS Environmental Corp.
TSX VENTURE : REW

November 30, 2007 16:15 ET

reWorks Environmental Issues Investor Update on Manufacturing Progress and Reports Nine-Month Financial Results

- Adopting new, more cost-efficient production process requiring significantly less manufacturing space to produce higher volume; reduces capital investment required by $1 million per plant - New production approach will enable reWorks to achieve triple the previously planned production capacity level in half the factory space - Using off-season months to build inventory of organic soil supplements to meet March-April fertilizing demand - Planning expansion of manufacturing capacity beginning in 2008

TORONTO, ONTARIO--(Marketwire - Nov. 30, 2007) - reWorks Environmental Corp. (TSX VENTURE:REW), an emerging leader in the production and marketing of premium organic soil enrichment products, today issued an investor update on its progress in establishing its manufacturing operations and announced its nine-month financial results.

"reWorks has been making good progress in establishing our production capabilities for our premium organic products for soil enrichment based on worm manure (worm castings) in our Toronto facility," reported Gary Gould, President.

"Perhaps more significantly with respect to our future growth and profitability, we have moved ahead with the adoption of new production methods that will be significantly more cost-efficient and will enable us to produce higher volumes in far less manufacturing space, while requiring substantially less capital investment than the process that we previously had begun to deploy.

"The new manufacturing approach will enable us to achieve triple the production volume that we had previously expected using the process that we had developed and installed. Further, we can achieve this increased output in half the space that we previously believed would be needed (25,000 square feet compared with 50,000 square feet). We also estimate that the new production methods will require about $1 million less capital investment per plant than we had previously planned. We expect that the new process will yield more consistent production output with less downtime and expense for maintenance and repairs needed," he said.

"We have begun ramping up production in our Toronto plant using the new process during this off-season period to build our inventory of soil enrichment supplements. When the March-April fertilizing season arrives, we will be ready to meet demand with our new line of organic soil enrichment supplement. By then, as well, using the new manufacturing approach, we should have increased our production capabilities several fold from the current levels," Mr. Gould reported.

"We are marketing these products under the name of our wholly owned operating subsidiary, Forterra Inc. To get the full benefit of the link with our brand name, we will be asking shareholders at our next annual meeting to approve the change in our company's name to Forterra Environmental Corp.," Mr. Gould said.

"We are actively working on plans to expand our manufacturing capacity beginning in 2008. As we firm up these plans, we will keep investors informed of our progress," he added.

"With respect to the new process, we have determined that it will be more efficient for us to source composting that meets our specifications, rather than producing our own. We recently successfully concluded tests of composts from outside sources and are negotiating a supply agreement with one or more of these potential suppliers. Further, we have confirmed suppliers that can meet our requirements for red wriggler worms in sufficient quantities for our production plans.

"Over time, we also will be breeding our own worms to create the population that will be needed as we grow our business. We already have established an inventory of more than 4,000 pounds of worms toward ramping up the manufacturing of our enrichment products," he said.

"During the next several months, we plan to initiate targeted sales programs to potential customers in the core markets that we expect will recognize the benefits of the organic Forterra soil enrichment products. These markets include golf courses, municipalities, lawn care providers, nurseries, greenhouses, vineyards, and others.

"Meanwhile, we have continued to carryout successful tests of our products with various organizations for numerous plants, floriculture, viticulture, and agricultural applications. We also have announced positive tests results from fertility trials of our worm casting (also called vermicompost) conducted at the University of Guelph Turfgrass Institute," Mr. Gould added.

"According to the Canadian Fertilizer Institute, the market for fertilizer in Canada is about $5 billion in sales. With increased plants and production, we expect that our Forterra soil enrichment products can serve a significant share of this market," said Don Green, Chairman and Chief Executive Officer of reWorks.

Nine-Month Financial Results

reWorks Environmental is still in the formative stages of its development toward becoming a mass-scale manufacturer of its soil enrichment products. Its financial results reflect the investments being made in establishing manufacturing, as well as in research and development and initial marketing and sales activities. reWorks Environmental was formed in May 2007 through a reverse takeover by reWorks Inc. of a company then called International Bioanalogics Systems, Inc.

Results prior to March 31, 2007 relate solely to reWorks Inc. (subsequently renamed Forterra Inc.). Results for the quarter ended September 30, 2007 also include the results of the parent, reWorks Environmental Corp. from May 14, 2007, the date of the reverse takeover.

Revenues for the nine-months ended September 30, 2007 were $36,941 compared with nil in the 2006 period. The loss before other expenses was $1.5 million, compared with a loss in the nine-month 2006 period of $1.0 million. These expenses included $0.5 million invested in research and development in the 2007 period, compared with $0.3 million in the prior-year period. In addition, the company incurred $0.4 million of expense in the initial set up and modifications to its manufacturing facilities in the first nine months of 2007, compared with $0.2 million in the 2006 period.

As reWorks has identified and installed the new, more cost-effective and efficient approach to mass-scale manufacturing, it wrote down in the 2007 third quarter the value of its previous manufacturing line from $1.4 million to scrap value of $10,000.

As the result of adopting the new production process, the company wrote down the value of its previous license and patent related to rotaries and worm gins by $1.0 million to nominal value of $10,000. The total writedowns of $2.4 million for the quarter and other expenses brought the net loss for first nine months of 2007 to $4.3 million ($0.08 per share), compared with a loss in the 2006 period of $1.1 million ($0.03 per share).

About reWorks Environmental Corp./Forterra Inc.

reWorks Environmental Corp., based in Toronto, through its wholly owned subsidiary, Forterra Inc., is an emerging leader in the production and marketing of premium organic soil enrichment products. These environmentally friendly products boost fertility while replenishing the soil with organic matter, using worm castings, for sustainable, long-term benefits, including stronger root growth and drought and pest resistance. reWorks is the first company to commercialize the indoor, large-scale production of totally organic soil-enrichment supplements. Essentially, Forterra uses red wriggler worms to convert organic waste into vermicompost or worm castings. Worm castings contain micronutrients, which are required for healthy plant development. Worm castings also contain microbes, which increase the rate at which plants take up available macronutrients and micronutrients.

Forward-Looking Statements

This news release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, availability of resources, competitive pressures, changes in market activity, and regulatory requirements. Risks and uncertainties about reWORKS Environmental Corp.'s business are more fully discussed in the company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada. reWork's assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements.

The TSX Venture Exchange Inc. has neither approved nor disapproved of the contents of this news release.

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