EarthShell Corporation
(Nasdaq: ERTH) announced today that after more than two years in
validation and testing, the product design of its EarthShell Packaging® hinged-lid
containers for the McDonald’s Big Mac® sandwich has met product performance
targets and has received final approval by McDonald’s Corporation (NYSE: MCD). Introduced in Chicago locations last April, EarthShell’s compostable
packaging has been used to serve more than seven million Big Mac sandwiches. In
approving the product design, McDonald’s has extended congratulations to
EarthShell Corporation and reiterated its intent to use the product in the U.S. system
based on continuing performance against expectations. Over the next several
months, EarthShell Corporation will be working closely together with the McDonald’s
system to expand product use and define a ramp-up timeline.

“This is the most significant development to date for our company,” said Simon K.
Hodson, Chief Executive Officer of EarthShell Corporation. “We have achieved one
of our primary goals by developing a package design which exceeds performance
expectations and maintains all of the environmental attributes characteristic of
EarthShell Packaging.”

Today’s announcement follows collaborative efforts between EarthShell and key
individuals within the McDonald’s system to develop product enhancements, which
include modifications to the closure mechanism and an improved film coating
process, both of which improve the properties of the package while maintaining the
original environmental profile of the EarthShell package.

“The process for securing McDonald’s validation of our packaging design has been
intense and thorough,” continued Hodson. “Meeting McDonald’s stringent
performance requirements for distribution, warehousing, store operations and
customer expectations is a great achievement and a milestone of which we are
extremely proud.”

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 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 has entered into a number of agreements to license its technology and to participate in joint
ventures with existing manufacturers of foodservice packaging. Additional EarthShell Packaging products include:
hinged-lid containers, next generation products such as plates, bowls, and hot and cold cups, and the recently
announced new sandwich wraps. The company currently provides plates and bowls for use by the U.S. Department
of Interior.

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 provide important environmental advantages.

News, McDonald's