ECOVATION ANNOUNCES CONTRACT WITH KRAFT FOODS FOR LOWVILLE, NY FACILITY

Mobilized Film Technology (MFT) anaerobic treatment and renewable energy system to convert high-strength whey permeate to methane gas

Ecovation, a developer of value-driven waste stream treatment and renewable energy solutions, today announced that it has signed a contract with Kraft Foods Global, Inc., to design, build, finance and operate a large waste stream treatment and renewable energy project at Kraft’s Lowville, New York facility. The multi-reactor MFT system will have the ability to treat all of the plant’s high-strength waste byproducts, as an alternative to land application, and offset 20 - 25% of the plant’s natural gas requirements.

At the Lowville facility, a cheese waste byproduct will be anaerobically treated using MFT to produce pretreated water and methane. The pretreated water will be combined with plant’s process wastewater and discharged to the municipal system. The methane gas that the MFT produces will be used to offset the consumption of natural gas in the plant’s boiler to produce steam. As an alternative, the methane can be used to power generators or other natural gas engine sets.

The MFT anaerobic process works by offering a large surface area to maximize the population of beneficial bacteria for high-rate treatment, allowing manufacturers to treat their waste quickly and efficiently, avoiding other costly and less environmentally attractive options.

“Ecovation develops solutions for managing complex waste streams. Our systems reduce costs while using environmentally attractive long-term alternatives to traditional disposal methods,” said Diane C. Creel, Chairman and CEO of Ecovation. “In the dairy wastewater management industry, the MFT stands apart as a leader – able to treat waste streams that other technologies can not handle effectively.”

Ecovation’s relationship with Kraft began in 1999, when the companies partnered to develop the best possible solution for treating the waste byproducts from certain Kraft cheese and dairy production facilities. Since then, Ecovation has been contracted to provide wastewater treatment services and technology for several of the nation’s largest dairy manufacturers and cooperatives.

About Kraft Foods
Kraft Foods (NYSE:KFT) is one of the world's largest food and beverage companies. For more than 100 years, we've offered consumers delicious and wholesome foods that fit the way they live. Millions of times a day, in more than 150 countries, consumers reach for their favorite Kraft brands. Whether it's breakfast, lunch, dinner or a snack, consumers at home and on the go choose: Kraft cheeses, dinners and dressings; Oscar Mayer meats, DiGiorno pizzas, Oreo cookies, Ritz crackers and chips, Philadelphia cream cheese, Milka and Cote d'Or chocolates, Planters nuts, Honey Bunches of Oats cereals, Jacobs, Gevalia and MaxwellHouse coffees; Capri Sun, Crystal Light and Tang refreshment beverages; and a growing range of South Beach Diet and better-for-you Sensible Solution options.

March 1, 2007

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