updated 3/22/2011 7:45:47 AM ET 2011-03-22T11:45:47

STUART, Fla., March 22, 2011 (GLOBE NEWSWIRE) -- Ecosphere Technologies, Inc. (OTCBB:ESPH), a diversified water engineering and environmental services company, today announced that it and its majority owned subsidiary Ecosphere Energy Services, LLC have signed an exclusive technology licensing agreement with Hydrozonix, LLC to deploy its patented Ecosphere Ozonix technology in the U.S. oil and gas exploration and production industry. To maintain their exclusivity in the onshore oil and gas shale plays across the U.S., the agreement requires Hydrozonix to purchase a specified number of Ecosphere's new EF60 mobile high volume water treatment units each quarter during the initial 24 months. If Hydrozonix purchases the minimum number of units each quarter, Ecosphere will recognize approximately $44 million of revenue over the next 24 months, plus recurring performance-based royalties. Thereafter, Hydrozonix may maintain its exclusive license by meeting annual minimum purchases over the 20-year life of the Ecosphere Ozonix patents.

Charles Vinick, Chairman of Ecosphere Energy Services and Chairman and CEO of Ecosphere Technologies, stated, "It is a pleasure to announce that we have signed an agreement with Hydrozonix to become our exclusive partner in licensing and deploying our patented Ozonix technology to the U.S. oil and gas exploration and production industries. One of our objectives over the past 12 months has been to find the right industrial services company to deploy our patented Ozonix technology to this market. Hydrozonix's principals have all managed some of the most prestigious and difficult engineering contracts in the U.S. during the past 20 years. They understand how to take unique technical equipment to the field and service their customers. We could not have found a better partner."

Ben Turner, CEO of Hydrozonix and President of Phillips and Jordan of Knoxville, TN, stated, "We are extremely pleased to be the service company that will now roll out the Ozonix, 'non chemical' water treatment technology to the U.S. oil and gas industry. Our deployment team has a 20-year history of rapid-deployments managing 24 by 7 by 365 complex operations on high profile projects throughout the United States. This same team recently completed a $200 million design/build, public-private water storage project. On the Phillips and Jordan side, we have a rich history of 'doing first what no one else has done;'

  • "Our firm was selected by the U.S. Army Corps of Engineers to assist New York City and the FBI in the forensic investigation of the debris resulting from the World Trade Center terrorist attack. Later, the City engaged us to complete the forensic investigation of debris resulting from the reconstruction of the World Trade Center. Our work for the Corps resulted in both an Outstanding Performance Evaluation and the award of their highest civilian recognition, Contractor of the Year for 2002;"
  • "Phillips and Jordan was also awarded the hardest hit area of the Gulf Coast (Orleans Parish) following the passage of Hurricane Katrina in 2006. Pursuant to a full and open competition (22 bidders), Phillips and Jordan was awarded a fixed-price $1 billion contract. We managed the demolition and debris removal for 71 square miles of Orleans Parish. Our effort earned us an Outstanding Performance Evaluation."

Turner further stated, "From our Trout Run, PA field office, Phillips and Jordan, Inc. currently provides pad construction services pursuant to master service agreements with a number of the leading oil and gas exploration companies."

John Ely, President and Founder of Ely and Associates of Houston stated, "I have believed in the Ecosphere Ozonix technology since we pumped the very first frac job in Arkansas to eliminate chemicals at pumping rates of up to 120 barrels per minute. The Ecosphere Ozonix process is the only 'non chemical' fracturing process that can effectively kill bacteria at the high flow rates needed during fracturing operations. Since that first 'non-chemical' frac job in November 2009, the Ozonix equipment has eliminated chemicals that would otherwise have been used on approximately 200 wells, treating over 14 million barrels of frac water. The development of the Ecosphere Ozonix technology is a game changer for our industry and provides environmental risk managers and completion engineers in energy exploration companies the ability to mitigate the risk of pumping chemicals downhole during their fracturing operations."

The EF60 is a mobile, high volume advanced oxidation system specifically designed to eliminate chemicals during the fracturing of natural gas and oil wells. Ecosphere Technologies, through its majority-owned subsidiary Ecosphere Energy Services, has been operating its patented Ozonix technology on hundreds of wells in the oil and natural gas industry since 2008. The EF60 product development was driven by customer demand to decrease the amount of equipment footprint at the frac site while increasing mobility from frac site to frac site. The EF60 is the "next generation" Ozonix unit and allows energy producers to recycle 100 percent of their production and flowback waters.

See Ecosphere's product renderings of the EF60. Ecosphere Technologies does not make any warranty or representation (express or implied) with respect to the accuracy, completeness, or exactness of the specifications and draft visuals contained herein. Ecosphere URL Web Link to the EF60 Image Gallery: www.EcosphereTech.com/gallery/Ozonix-EF60

About Ecosphere Technologies:

Ecosphere Technologies, Inc. (OTCBB: ESPH) is a diversified water engineering and environmental services company. The Company provides environmental services and technologies for use in large-scale and sustainable applications across industries, nations and ecosystems. Ecosphere is driving clean water innovation with its revolutionary, Ozonix technology.

About Hydrozonix, LLC:

Hydrozonix LLC is an oil and gas services company with environmentally responsible technologies to help manage their industrial clients' water recycling programs. Hydrozonix is a partnership of the principals of Phillips and Jordan of Knoxville, TN. ( www.PandJ.com ) and Siboney Contracting Company of West Palm Beach, FL. ( www.SiboneyCC.com ). Phillips and Jordan is a general contractor with 13 offices located in the Southeast and one in California. Siboney is a transportation logistics provider with offices in West Palm Beach, Orlando, Jacksonville, and New Orleans.

About Ely and Associates:

Ely and Associates, Inc. was founded in May 1991 by John Ely and three other partners. The company is headquartered in Houston and currently has 45 engineers and three support people on staff. The company is dedicated to providing a blend of practical and technical expertise on well completion, stimulation fluids and equipment and reservoir analysis. In 2010, Ely and Associates supervised more than 8,000 frac treatments. For more information, please visit: www.ElyFrac.com

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements including Ecosphere recognizing approximately $44 million of revenue over the next 24 months plus recurring royalties.  Forward looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions.  Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict.  Our actual results may differ materially from those contemplated by the forward-looking statements.  We caution you therefore against relying on any of these forward-looking statements.  They are neither statements of historical fact nor guarantees or assurances of future performance.   Important factors that could cause actual results to differ materially from those in the forward-looking statements include the effects of the global recession, the future price of natural gas, future legislation and regulations which affect gas drilling, successful manufacturing and operation of the new EF60's, competing technologies and Hydrozonix purchasing the required minimum number of units and profitably deploying the units under contract.

Further information on our risk factors is contained in its filings with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2010.  Any forward-looking statement made by us in this press release speaks only as of the date on which it is made.  Factors or events that could cause our actual results to differ may emerge from time to time and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Make sure you are first to receive timely information on Ecosphere Technologies when it hits the newswire. Sign up for Ecosphere's email news alert system today at: http://www.ESPH-IR.com .

For more information, please visit:   www.EcosphereTech.com

CONTACT: Investor Relations Contact:
         Gerald Kieft
         The WSR Group
         772-219-7525
         EcosphereIR@wallstreetresources.net
         http://www.WallstreetResources.net/Ecosphere.asp
         
         Press and Media Relations Contact:
         Corey McGuire
         Ecosphere Technologies, Inc.
         772-287-4846
         cmcguire@EcosphereTech.com

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