Paper Cup Company Signs Agreement

Sweetheart Cup signs priority licensing agreement to manufacture and market Earthshell Packaging in North America

Sweetheart Cup Co. signed a definitive licensing agreement with EarthShell Corp. Under the terms of the agreement, Sweetheart will receive an exclusive license for the manufacture and sale of EarthShell Packaging products to key market segments in North America and EarthShell Corp. will receive royalty payments on all products sold.

Sweetheart will become the primary supplier of EarthShell Packaging plates, bowls, cups and hinged-lid sandwich containers in North America. The agreement is for an initial ten-year period. Sales are planned to begin in the third quarter of next year, and Sweetheart has agreed to incremental performance goals for sales over the first five years ramping-up to $500 million annually.

The agreement is conditioned upon Sweetheart placing initial equipment orders by the end of the month, for delivery during the second quarter of 2003. Sweetheart intends to install the initial equipment within the current EarthShell production facility in Owings Mills, Maryland.