EarthShell Corporation and USDA-Agricultural Research Service Achieve First Milestone

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EarthShell Corporation and USDA-Agricultural Research Service Achieve

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FOR IMMEDIATE RELEASE

EarthShell Corporation and USDA-Agricultural Research Service Achieve

Confirm Ability to Use Economical Wheat and Corn Starches in

EarthShell Packaging(R) Products

SANTA BARBARA, CALIFORNIA, Jun. 30 -/E-Wire/Business Wire/-- EarthShell(R) Corporation (NASDAQ: ERTH), innovators of food service packaging designed with the environment in mind, announced today that the USDA- Agricultural Research Service (ARS) has confirmed the ability to use wheat and corn starches in the production of EarthShell Packaging products as commercially viable alternatives to more expensive commodity starches. This achievement is the result of the combined efforts of EarthShell Corporation and the ARS scientists in Albany, CA as part of their Cooperative Research and Development Agreement (CRADA), signed earlier this year. Under the CRADA, the two organizations are cooperating to identify and develop new ways to use agricultural materials (biobased) to commercialize packaging products made with the EarthShell technology.

Patents held by EarthShell Corporation cover the use of a variety of starches, including potato, wheat and corn. To date, EarthShell has focused on the use of potato starch. Today's announcement is an important validation of the Company's ability to utilize the lowest cost, locally available starches as a primary ingredient in EarthShell Packaging products. The research results prove the use of wheat and corn starches does not destabilize the inherent material, impact the manufacturing process or change the performance of the product. Additionally, the ability to use a variety of different starches enables EarthShell and its operating partners to maintain stable raw material costs, depending upon changes in commodity pricing.

"This milestone is an important success in our goal to expand the use of agricultural products in biobased goods," said Richard J. Brenner of the Agricultural Research Service's Office of Technology Transfer.

"Our work with the ARS has yielded valuable results," said Vincent J. Truant, president and chief operating officer of EarthShell Corporation. "Our ability to effectively use wheat and corn starches in the production of EarthShell Packaging enhances our ability to control costs, if needed. It is also important to note that wheat and corn represent two of the largest renewable crops in the United States, and the use of these starches potentially opens expanded market opportunities for the U.S. and global farming community. We anticipate our continued efforts with the ARS under the CRADA to result in additional achievements of critical economic performance and environmental benefit."

With today's announced technology confirmation of wheat and corn starch use in place, EarthShell intends to work toward building lines of supply and establishing long-term pricing for these starches. The Company plans to discuss the technology, supply and cost information with its operating partners to determine the appropriate next steps and timing necessary to incorporate additional starches into the production of EarthShell Packaging products.

EarthShell sandwich containers, plates, bowls and wraps are designed with the environment in mind. Developed over many years using a "life cycle inventory" and in consultation with leading environmental experts, EarthShell products reduce the environmental burdens of rigid food service packaging through the careful selection of raw materials, processes and suppliers. The products are made primarily from natural limestone and starch from potatoes, wheat or corn. The new packaging poses substantially fewer risks to wildlife than polystyrene foam packaging because it biodegrades when exposed to moisture in nature, physically disintegrates in water when crushed or broken, and can be composted in a commercial facility (where available) or in your backyard. In addition, the company has recently introduced flexible packaging in the form of sandwich wraps that also have been developed using a "life cycle inventory." Like EarthShell's rigid packaging, the wraps also biodegrade when exposed to moisture and bacteria in nature and can be composted in a commercial facility (where available) or in your backyard.

EarthShell Corporation is a development stage company engaged in the licensing and commercialization of proprietary composite material technology for the manufacture of foodservice disposable packaging, including cups, plates, bowls, hinged-lid containers, and sandwich wraps. In addition to certain environmental characteristics, EarthShell Packaging is designed to be cost and performance competitive compared to other foodservice packaging materials.

For more information, please visit our website www.earthshell.com.

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties of other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in the Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's most recent Form 10-K and other documents filed by the Company with the Securities and Exchange Commission.

EarthShell Corporation

Media Inquiries: EarthShell Corporation, Cindy Eikenberg,

410/847-9420 OR , Euro RSCG Middleberg, Victoria Grantham,

212/699-2520, [REDACTED-EMAIL] OR

Investor Inquiries: 866/438-3784, [REDACTED-EMAIL]

http://www.earthshell.com

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