ZEOX Corporation
TSX VENTURE : ZOX

ZEOX Corporation

February 27, 2008 14:48 ET

ZEOX Reports Second Quarter Financial Statements

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2008) - Mr. LuVerne E.W. Hogg, President and CEO of ZEOX Corporation (The "Company" or "ZEOX") (TSX VENTURE:ZOX), announces that the Company has released its unaudited consolidated financial statements for the second quarter and six month period ended December 31, 2007. The Company reports a second quarter loss for the three months ended December 31, 2007 of $135,938 compared to a loss of $120,120 for the same period in 2006. The Company reports a year-to-date loss for the six months ended December 31, 2007 of $801,479 ($0.02 per share) compared to a loss of $198,895 ($0.01 per share) in 2006.

The financial results for the six months ended December 31, 2007 reflect an organization that is focused on revenue growth based on a reliable infrastructure for full scale mining, processing and distribution operations. Much of the six months ended December 31, 2007 focused on increasing production capacity and acquisition activities. The Company has recorded revenue of $289,595 in the six months ended December 31, 2007.

The Company recorded a gross profit return of 27% in the second quarter however an overall negative margin return of $57,042 was recorded for the six months ended December 31, 2007. As production and customer volume increase profit margins are expected to be realized and grow in future periods.

Expenses were related to administrative, corporate finance, merger & acquisition activities, professional fees, refit activities and start up operations. Results include a foreign exchange gain of $171,722 and interest income of $116,752. At December 30, 2007, the Company had working capital of $5,595,698 that includes cash on deposit in the amount of $4,614,595 and $1,084,054 of prepaid deposits related to the acquisition of facilities in Butte, Montana and ZEOX Performance Materials, LLC (formerly Nano Clays, LLC).

Results of business activities for the six month period pushed shareholders' equity up to $9,844,316 at December 31, 2007 from $3,695,645 at June 30, 2007. Total assets grew to $13,818,169 at December 31, 2007 compared to $7,337,705 at June 30, 2007.

For a more complete business and financial profile of the Company, management encourages investors to view the Company's documents posted on SEDAR.com.

On behalf of the Board of Directors

LuVerne E.W. Hogg, President and Chief Executive Officer

Legal Notice Regarding Forward Looking Statements: This news release contains "forward-looking statements within the meaning of applicable Canadian securities legislation. Forward-looking statements are indicated expectations or intentions. Forward-looking statements in this news release include that the assets acquired by the Company during the quarter will allow for the successful commercialization of unique zeolite-based product formulations globally in 2008 and 2009. Factors that could cause actual result to be materially different include that markets may not develop as quickly as anticipated or at all or that productive capacity may not be large enough to handle market demand. Investors are cautioned against placing undue reliance on forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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