<B>EarthShell Working with McDonalds on Packaging</B>

EarthShell Corp. is in discussions to develop a more traditional arrangement to supply EarthShell containers for Big Mac sandwiches in the U.S. McDonald's system. Additionally, it has been agreed that EarthShell is free to market its products to other customers even before the conclusion of the validation testing process with McDonald's.

The company also reported that, at McDonald's request, the in-store validation program will use EarthShell containers with FDA-compliant post consumer recycled fiber in place of virgin fiber. EarthShell sandwich containers are made primarily from natural limestone and potato starch. The addition of a small percentage of PCW recycled fiber enhances the product's environmental profile.

Due to the recent unavailability of FDA-compliant PCW fiber, EarthShell began using FDA-compliant virgin fiber and began developing alternative commercial sources of FDA-compliant PCW fiber from milk cartons and juice boxes. The development of new PCW sources is complete and the validation program is being extended while the new PCW fiber supply is integrated into inventory and all other validation criteria and specifications are measured. Recycled fiber from the new source has been used in production for four weeks at EarthShell's first manufacturing facility, and initial quality and efficiency data are comparable to virgin fiber.