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Press release from PR Newswire

EcoSynthetix Expands Production Capacity to 155 Million Pounds

Friday, November 04, 2011

EcoSynthetix Expands Production Capacity to 155 Million Pounds08:00 EDT Friday, November 04, 2011 - New state-of-the-art production line in The Netherlands supports growth - BURLINGTON, ON, Nov. 4, 2011 /PRNewswire/ - EcoSynthetix Inc. (TSX: ECO), a renewable chemicals company that produces a family of commercially proven bio-based products, today announced that it has commissioned a new 80 million pound production line within the existing facility in Oosterhout, The Netherlands, bringing the Company's current annualized capacity to 155 million pounds. It is the first of two new 80 million pound lines that the Company expects to bring on line by the end of the year. The new Oosterhout line was completed on time and on budget. "Having additional capacity in our Netherlands facility puts us in a stronger position as we build our customer base globally," said John van Leeuwen, Chairman and CEO of EcoSynthetix. "The strength of our mill trial activity gives us the confidence to continue to build capacity to ensure that we have the capability to meet customer needs. With performance parity relative to competitive products, a significant price advantage and an extremely cost-pressured end market, we believe it is a matter of "when" rather than "if" large-scale adoption of our ECOSPHERE® BIOLATEX® binder takes place within the coated paper and paperboard market." The new line employs the latest state-of-the-art emulsifier technology, providing EcoSynthetix with higher throughput and improved margins relative to its original two lines. The Company's fourth line is expected to be installed later this year in Tennessee, bringing the total annualized production capacity to 235 million pounds. The installation of the Oosterhout line follows on the heels of EcoSynthetix commissioning its BIOLATEX® binder pilot plant located at the Company's Centre of Innovation in Burlington, Ontario. The pilot plant is being used for research and development purposes to support new product development. It supports the Company's plans to further penetrate the paper and paperboard industry and expand into new markets, as it continues to displace petrochemical polymers with a low cost, bio-based alternative. About EcoSynthetix Inc. (www.ecosynthetix.com) EcoSynthetix Inc. is a renewable chemicals company specializing in bio-based products that can be used as inputs in industrial manufacturing for a wide range of consumer products. The Company's products offer a reduced carbon footprint and are marketed primarily on the basis of lower cost, stable pricing and equal or superior performance. EcoSynthetix's lead product, ECOSPHERE® BIOLATEX® binders, is used commercially by a number of the global top 20 manufacturers in the coated paper and paperboard industry. Forward Looking Statements Certain statements in this Press Release constitute "forward looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of the Company, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward looking statements. These statements reflect our current views regarding future events and operating performance and are based on information currently available to us, and speak only as of the date of this Press Release. These forward looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Those assumptions and risks include, but are not limited to, the fact that our results of operations and business outlook are subject to significant risk, volatility and uncertainty. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking statements, including the factors identified in the "Risk Factors" section of the Company's supplemented prospectus dated July 27, 2011. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, we do not intend and do not assume any obligation to update these forward looking statements. SOURCE EcoSynthetix Inc.For further information: <table> <tr valign="top"> <td align="left"> EcoSynthetix Inc.<br/> John van Leeuwen<br/> Chairman & Chief Executive Officer<br/> Phone: (289) 288-5010<br/> E-mail: <a href="mailto:jvanleeuwen@ecosynthetix.com">jvanleeuwen@ecosynthetix.com</a>   </td> <td align="left"> Investor Relations<br/> Ross Marshall<br/> TMX Equicom<br/> Phone: (416) 815-0700 (Ext.238)<br/> E-mail: <a href="mailto:rmarshall@equicomgroup.com">rmarshall@equicomgroup.com</a> </td> </tr> </table> <p>   </p>