Earthshell Corporation and Sweetheart Cup Company, Inc. Sign Expanded Agreement for Retail Market Segment

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Earthshell Corporation and Sweetheart Cup Company, Inc.

Sign Expanded Agreement for Retail Market Segment

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Business Editors/Environment Writers

Earthshell Corporation and Sweetheart Cup Company, Inc.

Sign Expanded Agreement for Retail Market Segment

Sweetheart Awards Manufacturing Equipment Purchase Order

CALIFORNIA, SANTA BARBARA, Aug. 21 -/E-Wire/Business Wire/-- EarthShell Corporation (NASDAQ: ERTH), innovators of food service packaging designed with the environment in mind, announced today that they have expanded their agreement with Sweetheart Cup Company, Inc. to allow Sweetheart exclusive access to the retail market segment that includes mass merchandisers such as Wal-Mart, as well as supermarkets and drug stores, while maintaining non-exclusive access throughout the balance of the U.S. food service disposable packaging industry of North America. Sweetheart has demonstrated abilities across all ranges of the food service disposable packaging market, including retail and mass merchandisers. Today's news follows successful demonstration of customer acceptance for more than a year at select Wal-Mart stores throughout the U.S. Additionally, Sweetheart has awarded a purchase order for initial equipment modules to manufacture EarthShell Packaging(R) plates and bowls to Detroit Tool & Engineering (DTE). Sweetheart's purchase order may represent the first of its anticipated equipment orders to produce EarthShell Packaging. Subsequent orders are expected to be placed after appropriate product mix, volume and other business considerations are determined, and provided that the equipment meets performance standards and products are produced within agreed-to economics.

Sweetheart will focus on the preparation of specific market introduction activities while it awaits installation and start-up of the initial equipment modules at a date to be announced later.

"EarthShell is committed to helping Sweetheart successfully launch this product to their customers," said Vincent J. Truant, president and chief operating officer of EarthShell Corporation. "We believe the combination of Sweetheart's core competencies and the unique attributes of EarthShell Packaging can create a strong foundation of business for these new and unique products, as well as build recognition and momentum for the EarthShell brand."

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

EarthShell Corporation, Media Inquiries:

Cindy Eikenberg, [REDACTED-PHONE] or Euro RSCG Middleberg

Victoria Grantham, [REDACTED-PHONE],

[REDACTED-EMAIL], or Investor Inquiries:

[REDACTED-PHONE], [REDACTED-EMAIL]

http://www.earthshell.com

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