GreenMan Technologies, Inc. Reports Third Quarter

Bob Davis, GreenMan's president and CEO, "The first nine months of fiscal 2003 have presented significant challenges, some were anticipated and some were not. In order to position GreenMan to be stronger and more profitable in the future, significant investments were required this year. During the past nine months, we have invested over $1.1 million developing our California, Tennessee and Wisconsin operations. These investments have come in the form of new capital equipment in some cases and the funding of new market development initiatives in others.

“While we still have work ahead of us to achieve our desired goals, we believe a majority of the investment is behind us. We estimate that, when our Tennessee facility is fully operational, the cost savings realized by processing Tennessee-sourced tires locally instead of transporting them to Georgia will exceed $70,000 per month."

Mr. Davis added, "As we enter our historically strongest quarter, we are pleased to report record revenues at our Georgia, California and Iowa operations for the month of July. As a result of our $1.65 million investment to upgrade our Iowa shredding and waste wire processing equipment this year, our material shipments have increased five-fold on a fiscal-year-to -date basis through July 2003 as compared to the same period last year. We are in the final stages of installing our new $1 million waste wire processing system and new size reduction equipment in Minnesota which we estimate will allow us to reduce our annual disposal expense by over $160,000 per year, and provide new sources of revenue and much needed material feedstock for our Iowa crumb rubber operations. The March 2003 Georgia waste wire processing equipment fire, while unfortunate and costly ($250,000 of costs incurred during the June 30, 2003 quarter prior to recognition of a partial insurance recovery of $99,000), has provided us an opportunity to re-evaluate the equipment and process configuration in Georgia with the intention of optimizing our Southeastern waste wire processing capabilities.

Net sales for the quarter were $7.159 million, compared to last year's net sales of $7.176 million, which included approximately $328,000 of net sales and 383,000 passenger tire equivalents associated with GreenMan's majority owned joint venture which was divested on April 1, 2003.

In addition, several large tire pile cleanup projects accounting for 10 percent of the total passenger tire equivalents processed during the quarter were completed during June 2002. These decreases were offset by the inclusion of the California operations, which were acquired in July 2002 as well as increased end product sales which accounted for 27 percent of consolidated revenues for the three months ended June 30, 2003 as compared to 15 percent for the same period last year.

GreenMan processed 6.9 million passenger tire equivalents during the quarter, compared to 7.1 million passenger tire equivalents for the three months ended June 30, 2002. The overall quality of revenue (revenue per passenger tire equivalent) improved due to improved end product sales which offset an 8 percent reduction in tipping fees and lower tire volumes in certain markets due to current economic conditions, world events and the completion of several large on-going tire pile cleanups during the spring of 2002.

Net sales for the nine months ended June 30 increased 12 percent or $2.227 million, compared to $19.044 million for the nine months ended June 30, 2002, which included $444,000 of net sales associated with GreenMan's majority owned joint venture which was divested on April 1, 2003. In addition, several large tire pile cleanup projects accounting for 11 percent of the total passenger tire equivalents processed during the nine months ended June 30, 2002 were completed during June 2002.

The increase was primarily attributable to the inclusion of operations of three new subsidiaries formed in connection with fiscal 2002 acquisitions and the majority owned joint venture formed in fiscal 2002, as well as increased end product sales which accounted for 23 percent of consolidated revenues for the nine months ended June 30, 2003 as compared to 14 percent for the same period last year. GreenMan processed 21 million passenger tire equivalents during the nine months ended June 30, 2003, as compared to 18.4 million passenger tire equivalents for the nine months ended June 30, 2002. The overall quality of revenue (revenue per passenger tire equivalent) benefited from increased end product sales but decreased 2 percent overall as a result of a 15 percent reduction in tipping fees and lower tire volumes in certain markets in response to current economic conditions, world events and the completion of several large on-going tire pile cleanups during the spring of 2002.