Industry News | July 27, 2001

Chicago McDonald's Use Earthshell Packaging

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EarthShell® Corporation (Nasdaq: ERTH) announced significant news today that it has been given the "go-ahead'' by McDonald's Corporation to supply all 465 Chicago area McDonald's restaurants with the new EarthShell Packaging container for the Big Mac® sandwich. Designed with the environment in mind, the limestone-and-starch based packaging has been used continuously to serve more than 10 million Big Mac sandwiches since its introduction in over 100 McDonald's restaurants last year. Today's announced product expansion for EarthShell Packaging containers will occur as part of a normal course of business with our customer's system. West Coast expansion is expected to occur this Fall.

"We are pleased to report today's good news and believe it is an excellent reflection of McDonald's confidence in EarthShell Packaging,'' said Simon K. Hodson, chief executive officer of EarthShell Corporation. "While earlier plans called for expansion to 300 Chicago area stores, we are continuing to build momentum as we announce our plans to move to nearly 500 McDonald's restaurants.''

As recently announced, McDonald's approved the product design of the new container, which includes a new double-tab closure mechanism and an improved coating. Reports by McDonald's restaurants currently using the redesigned, compostable package indicate that it performs extremely well and meets all requirements for both store operations and customer expectations, which are the primary qualifications for expansion.

The EarthShell container for the Big Mac sandwich was designed with the environment in mind. It was developed over many years using a Life Cycle Inventory and in consultation with leading environmental experts to reduce the environmental burdens of rigid sandwich packaging through the careful selection of raw materials, processes and suppliers. The containers are made from reclaimed potato starch, natural limestone and post-consumer recycled fiber (which does not require the cutting of trees), biodegradable polymer and wax coatings, and water. This new packaging substantially reduces risk to wildlife compared to polystyrene foam sandwich containers 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.

EarthShell Corporation is engaged in the licensing and commercialization of proprietary composite material technology for the manufacture of disposable foodservice packaging, including cups, plates, bowls, hinged-lid containers, and sandwich wraps. EarthShell Packaging is designed to be cost and performance competitive compared to other foodservice packaging materials, and also to provide important environmental advantages.

For more information, please visit the EarthShell web site at http://www.earthshell.com .