AJAX, ONTARIO--(Marketwire - June 23, 2009) - Environmental Waste International Inc. (EWI) (TSX VENTURE:EWS) through its 100% owned subsidiary, EWI Rubber Inc. (EWIR) has received an order to develop a Prototype Tire System from Ellsin Environmental Ltd (Ellsin), a private Canadian corporation. Under a signed Prototype Agreement EWIR will build a TR900 system for $4.175 million, about 80% of the $5.25 million total project cost. Based on EWI's patented Reverse Polymerization(TM) process, the system is designed to break down at least 900 tires per day and recover carbon black, oil and steel, while producing its own power from the off-gases. The TR900 will serve as a showpiece for EWIR's tire technology. As part of the Agreement, EWIR will grant Ellsin all available territorial rights for the TR technology in Canada and the United States, subject to future performance requirements.
The order culminates months of collaboration between EWIR and Ellsin. Ellsin is financing the project from private investors, an Ontario provincial funding program and EWI (as indicated below). Ellsin has made a $50,000 non-refundable deposit and must deliver an additional $1,150,000 in the next four weeks in order to proceed with the contract. Once the full deposit has been received, EWIR will begin the engineering and manufacture of the TR900 while assisting Ellsin with its permit and site preparations. The project should be completed in about 12 months.
EWI has negotiated the purchase of a 37.5% equity interest in Ellsin. EWI will finance the purchase through a share placement with Ellsin's investors. The placement, subject to TSXV approval and a hold period, is for up to six million units at $0.15 per unit. Each unit will include one common share of EWI and a two-year warrant that will entitle the holder to purchase an additional share at $0.20 per share.
EWI has designed systems for the sterilization of medical and animal waste, liquid waste and food waste as well as the breakdown of several other organic materials including tires. EWI continues to work on designs for other applications. Please visit EWI's home page at: www.ewmc.com.
WARNING: The Company relies upon litigation protection for "forward-looking" statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Environmental Waste International Inc. (EWI)
Dr. Stephen Simms