<b>EarthShell Reports Loss for Quarter</B>

EarthShell Corp. reported financial and operating results for the third quarter. Net loss for the third quarter was $10.2 million, compared to a net loss of $12.3 million for the 1999 third quarter. Operating expenses in the quarter were $10.6 million, versus operating expenses of $13.1 million in the same period of 1999. ``Reduced operating expense contributed to an improvement to our net loss for the quarter by $0.7 million over last quarter and $1.9 million over the third quarter last year,'' said CFO Scott Houston. ``More significantly, we have sold and shipped more than 4 million EarthShell clamshells so far this year. Because of the current operating agreement with Sweetheart Cup Company, revenues from these product sales are booked as offsets to the cost of manufacturing operations during the start-up phase.''

EarthShell's hinged-lid ``clamshell'' container now uses FDA-compliant post consumer waste recycled fiber. The inclusion of PCW fiber has enhanced the ``clamshell'' product's environmental profile. The EarthShell sandwich containers now in Chicago meet all environmental requirements.