EarthShell Signs Agreement with Mexican Firm

EarthShell Corp. and EarthShell Hidalgo S.A. de C.V. of Mexico  announced that they have signed a licensing agreement under which EarthShell Hidalgo will manufacture, distribute and sell EarthShell Packaging throughout Mexico. EarthShell Corp. approved the formation of EarthShell Hidalgo by a group of business leaders in Mexico.

The terms of the agreement grant EarthShell Hidalgo a performance-based, exclusive contract for the Mexican marketplace. The agreement defines yearly capital commitments with specific capacity and revenue goals for each of the first five years. Early next year, EarthShell Hidalgo will issue a purchase order for an initial 8 manufacturing modules with production capacity of approximately 200 million units per year of EarthShell Packaging foam laminate products.

EarthShell Hidalgo's goal is to have 96 modules operating within 3 years. EarthShell Hidalgo is currently in discussions with equipment manufacturers and plans to begin commercial manufacturing operations as soon as possible during 2005.

EarthShell Hidalgo started construction on the first phase of a 150,000 square foot manufacturing facility in Hidalgo, Mexico.

"EarthShell Hidalgo is dedicated to the commercialization of a full range of EarthShell Packaging products for Mexico and wherever we can be of help in bringing these world class products to market," said Lic. David Maczka of EarthShell Hidalgo S.A. de C.V. "The capabilities of our group in developing and managing low cost, high quality manufacturing operations we believe will help accelerate momentum for EarthShell's unique environmental packaging. We have pride in being part of this business which has such valuable social and environmental benefits that are clearly needed within the advancing Mexican marketplace and beyond."