ECOVATION SIGNS CONTRACT WITH DAIRY FARMERS OF AMERICA

Ecovation, Inc. has signed a contract with Dairy Farmers of America (DFA) to operate six wastewater treatment plants in Monett and Cabool, MO; Lovington, NM; Sulphur Springs, TX; Winnsboro, TX; and New Wilmington, PA. Each facility will have Ecovation staff on site to operate and maintain existing equipment, as well as implement new operating and asset protection programs.

At each facility, Ecovation will put in place sustainable process improvements that will generate immediate cost savings. In addition, the contract has an incentive-based plan that rewards both parties for the implementation of cost saving and revenue generating ideas.

Under this contract, DFA’s plant in New Wilmington, PA, will undergo a comprehensive upgrade to the anaerobic treatment system. This will include the installation of a Biotim® system, offered under Ecovation’s exclusive licensing of the technology for application in the U.S. The upgraded anaerobic system is expected to generate excess biogas that will be available for use in the DFA production facility to offset the use of natural gas. The upgraded wastewater treatment facility should be operational by the end of 2006.

February 2006

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