ECC Reports First-Quarter Results Including Nearly 50% Gain in Revenue

WISCONSIN RAPIDS, Wis.--(Business Wire)--
Energy Composites Corporation ("ECC") (OTCBB:ENCC), a leading provider of
composites-based solutions to the clean-tech sector, today announced results for
the quarter ended March 31, 2009. ECC delivered a 48.7% increase in revenues for
the quarter compared to the same period in 2008 and a 20.8% increase in gross
profit.

During 2008, ECC enjoyed a beneficiary relationship with Fiberglass Piping &
Fitting Company ("FPF"), a piping distribution company owned by ECC`s largest
shareholder, and M&W Fiberglass, LLC ("M&W"), a predecessor company to Advanced
Fiberglass Technologies, Inc. ("AFT"). Both M&W and FPF were considered variable
interest entities throughout 2008, thus requiring that ECC report financial
performance on a consolidated basis for 2008. On December 30, 2008, ECC
terminated that beneficial relationship with both entities. The figures used in
the remainder of this release reflect ECC`s results on a stand-alone basis by
removing the results of M&W and FPF.

1st Qtr 1st Qtr
2009 2008
Revenue $ 2,412,669 $ 1,623,014
Cost of goods sold 1,968,202 1,284,666
Gross profit 444,467 338,348
Selling, general and administrative expenses 892,316 528,360
Income (loss) from operations (447,849 ) (190,012 )
Interest expense, including non-cash amortization of debt discounts related to convertible debt (1,614,642 ) (165,527 )
Net loss, including effect of income tax provision (990,642 ) (193,527 )
EBITDA, excluding non-cash charges ($336,339 ) ($122,788 )

The increase in revenues quarter over quarter was attributable to continuing
volume improvements in and strengthening of in-plant production for ECC`s core
markets (flue-gas desulfurization, chemical storage, water handling and
bio-fuels). ECC experiences softer seasonal field service revenues in the first
quarter of each year since most plant outages for the Company`s core market
customers occur during the spring, summer and fall. In interpreting financial
results, ECC uses EBITDA as the most meaningful measurement of performance
because of the substantial effect of non-cash charges to the income statement
due to the method of accounting for convertible debt. The increase in current
quarter EBITDA loss is largely driven by the continued investment the Company is
making in growth, including investments in selling, estimating, designing and
contract management infrastructure.

Sam Fairchild, ECC`s CEO, stated that, "Our expansion and diversification
strategy continues apace, with solid core market results in spite of
economy-wide weaknesses. We are investing in our WindFiber strategy, and have
announced our plans to construct a 350,000 square foot wind blade production
plant in Wisconsin Rapids over the next twelve months. We are also investing in
a stronger sales and marketing platform as well as more solid in-house
capability to prepare bids, design composite solutions, engineer product
outcomes and manage contract execution. Upgrading these capabilities has been a
priority over the quarter, and we have made great progress against our internal
targets."

Mr. Fairchild continued, "We are confident that making these platform
investments now will pay shareholders substantial dividends throughout the rest
of 2009 and during 2010. We are bullish on the 2010 and beyond wind market, as
well as demand for cost-effective replacements for wastewater infrastructure.
Flue gas desulfurization infrastructure demand is driven by strict regulatory
requirements, and we are now seeing a new uptick in activity in petrochemical,
mining, biofuels and methane digestors. The rest of 2009 and all of 2010 appears
to be very favorable for the value proposition we offer customers in each of our
market sectors."

"We are pleased with our progress on internal efficiency and production
excellence over the quarter," Jamie Mancl, ECC`s founder and President, added.
"ECC is really turning out superior composite structures. Our recent completion
of a large chlor-alkali tank contract allowed us to put some new production
concepts into place, as well as put our new home-built vertical winder through
its paces. Our Employee-Associates really came through, and many of these new
production concepts will help to drive value in the quarters to come."

Mr. Mancl said, "We have also put a huge amount of effort into the launch of our
WindFiber strategy, and we are very excited about the materials, production,
design and logistics innovations we will bring to the wind energy market."

ECC reported a net loss from operations during the first quarter of 2009 of $0.4
million, compared to $0.2 million during the first quarter of 2008. Much of that
shift was the result of higher cost of goods sold ("COGS"), itself the product
of raw materials, manufacturing labor and manufacturing overhead. The rest of
the 2008 operational loss was driven by ECC`s investment in the selling and
corporate overhead required to facilitate and manage ECC`s growth plan. Selling,
general and administrative expenses ("SGA") increased from 33% of revenue in the
first quarter of 2008 to 37% in the first quarter of 2009. Much of this increase
came from increased headcount in ECC`s sales and marketing force and the
administrative resources to support the sales effort. Most of the remainder of
the SGA increase relates to increased corporate headcount and associated
expenses to accommodate the requirements associated with being a public company.

Jeff Keuntjes, ECC`s Vice President, Finance, noted that "Our operating results
are within our operating plan`s expected range, but our loss from operations is
three percentage points higher than I expected. We believe that we will enjoy
substantial improvement in manufacturing overhead as a percentage of revenues as
production volumes increase over 2009. I also expect that new production
efficiencies we have been developing over the last several months will also
drive additional EBITDA during 2009."

ECC recorded non-cash amortization of debt discounts for warrants and beneficial
conversion feature related to the convertible debt - ECC`s primary source of
capital in 2008 - of $1 million in the quarter. In addition, ECC recorded a net
income tax benefit of $0.6 million for the first quarter of 2009, resulting in a
net loss of $0.9 million for the first quarter of 2009 compared to a net loss of
$0.2 million for the first quarter of 2008.

Sam Fairchild said, "We are on schedule to deliver a high level of shareholder
return for 2009, 2010 and beyond. Our strategic platform investments, coupled
with our market positioning and our progress on innovations will begin to drive
substantial value as the economy strengthens and the wind energy market returns
to its previous growth pace. ECC`s Employee-Associates have been at the core of
this progress, and Jamie and Jennifer Mancl join me in thanking them for their
continued belief in our model and in what we are trying to accomplish. Our
future ability to deliver value will also depend in part on the continuing
strength of our relationship with the City of Wisconsin Rapids, Wisconsin, the
State of Wisconsin, and our many local partners."

About Energy Composites Corporation

ECC operates a world-class, automated 73,000 sq. ft. climate-controlled
manufacturing facility in Wisconsin Rapids, WI, employing advanced composite
materials to design, engineer and manufacture complex composite structures,
vessels and processing systems for a range of clean-tech applications that
include: wind energy system components, flue gas desulfurization for power
plants, infrastructure for biofuel storage and processing, infrastructure for
managing waste water and drinking water storage, advanced municipal utilities
infrastructure, and caustic material storage and handling systems for the
petrochemical, mining and the pulp and paper industries. ECC also provides 24/7
field service crews nationwide for wind energy system composites maintenance,
repair and overhaul; industrial retrofit, shutdown and maintenance; system
installation; and repair and inspection services. For additional information,
visit our website at www.energycompositescorp.com or contact Sam Fairchild at
1-800-787-5439.

Certain statements found in this press release may constitute forward-looking
statements. Forward-looking statements are based on current expectations and
include any statement that does not directly relate to a current or historical
fact. Such statements are generally identifiable by the terminology used, such
as "anticipate," "believe," "intend," "expect," "plan," or other similar words.
Our forward-looking statements in this release generally relate to our
expectations and beliefs with respect to our growth and expansion activities and
plans. Although it is not possible to foresee all of the factors that may cause
actual results to differ from our forward-looking statements, such factors
include, among others, the following: (i) unforeseen delays, costs or
liabilities associated with our growth and expansion plans; (ii) fluctuations in
general economic conditions; and (iii) those risks described from time to time
in our reports to the Securities and Exchange Commission. Investors should not
consider any list of such factors to be an exhaustive statement of all of the
risks, uncertainties or potentially inaccurate assumptions that could cause our
current expectations or beliefs to change. Shareholders and other readers should
not place undue reliance on "forward-looking statements" as such statements
speak only as of the date of this release. We undertake no obligation to update
publicly or revise any forward-looking statements, other than as required by
law.

Energy Composites Corporation
Sam Fairchild, 800-787-5439
www.energycompositescorp.com

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