Environmental Operating Solutions Completes Initial Tranche of $2.5 Million Institutional...

Environmental Operating Solutions Completes Initial Tranche of $2.5 Million
Institutional Financing
-Company to expand distribution of proprietary products that improve the
safety, effectiveness, and environmental impact of removing pollutant nitrogen
in wastewater; advance R&D on existing and new denitrification products-

BOURNE, Mass., March 18 /PRNewswire/ -- Environmental Operating Solutions,
Inc. (EOS) announced today that the company has closed the first tranche of a
$2.5 million institutional financing round led by Stuart Mill Venture
Partners, with the second tranche expected to close in 2Q 2008. EOS is an
environmental technology company that develops and markets green chemicals
specifically engineered for the purification of water. The company will use
the initial investment proceeds to expand manufacturing and distribution
capabilities for its proprietary line of liquid carbon products that remove
nitrogen from wastewater. EOS will use the second tranche of financing to
broaden its denitrification technical capabilities and to support research and
new product development.
Excessive accumulation of nitrogen in surface and groundwater is an
ecological and public health concern that has been linked to serious ecosystem
damage, fish and shellfish kills, and contamination of drinking water
supplies. Denitrification of water discharged from wastewater treatment
facilities is a focal point of regulatory action, particularly in coastal
areas such as the Chesapeake Bay, Long Island Sound, and Florida. EOS' line of
MicroC(TM) products safely and effectively denitrify water discharged from
wastewater treatment plants to achieve regulatory compliance while avoiding
the hazards and limitations of standard liquid methanol, including toxicity,
flammability, price volatility, and nonrenewable natural gas sourcing. EOS
launched MicroC(TM) in the northeastern U.S. wastewater treatment market in
2003 and MicroC G(TM) in 2006, and the company currently has more than 185
wastewater treatment plant customers ranging in size from small plants serving
schools and condominium complexes to large municipal wastewater treatment
facilities.
"With this financing, EOS is positioned to rapidly expand operations
beyond our current Boston and Baltimore manufacturing facilities to serve our
growing customer base nationwide and around the globe," said Eric Stoermer,
President and Chief Executive Officer of EOS. "In addition, these funds will
enable us to undertake the research and technical development required to
engineer continuing improvements in our denitrification products and to
develop new products, including products potentially derived from waste
materials."
"Driven by increasingly stringent regulatory limits on the amount of
nitrogen allowed into the environment, wastewater treatment facilities are
seeking a safe and reliable upgrade for enhanced nitrogen removal," said Jeff
Salinger, Managing Partner with Stuart Mill Venture Partners. "As this market
expands, we believe that EOS' technical expertise and long-term commitment to
innovation and product development will lead denitrification efforts as plants
increasingly choose safer and environmentally sustainable products over
methanol and other less consistent carbon sources. We look forward to being a
part of EOS' success as the company builds its national and international
production and distribution network."
About Wastewater Denitrification
Nitrogen pollution is an environmental problem worldwide. It is estimated
that more than 10,000 water bodies in the U.S. are currently impaired by
nitrogen or phosphorous pollution, with 49 states citing nutrients or
excessive algal growth impairments. Nutrient pollution has been identified as
the principal cause of water quality problems in the Chesapeake Bay, Long
Island Sound, and North Carolina estuaries, as well as the continuing
expansion of the Gulf of Mexico's "dead zone" -- a roughly 8,000-square-mile
region that has very low oxygen concentrations and cannot support aquatic life
due to nutrient pollution.
Pollutant nitrogen is typically found at high levels in wastewater and is
removed using a biological process known as denitrification, which converts
the nitrogen into harmless components (water, nitrogen gas, and carbon dioxide
gas). An essential step in denitrification is the introduction of an electron
donor/carbon source for the denitrifying bacteria. Methanol, a flammable and
toxic liquid derived from nonrenewable natural gas, is the legacy carbon
source used in wastewater denitrification. There is growing dissatisfaction in
the wastewater treatment industry with the safety profile, performance
limitations, and price volatility of methanol. In addition, increasingly
stringent federal and state regulatory mandates are requiring wastewater
treatment facilities to limit the amount of nitrogen released into receiving
waters, resulting in costly technology upgrades and increased operational
expenditures for wastewater treatment plants.
About MicroC(TM) and Micro C G(TM)
MicroC(TM) is a proprietary product developed by EOS specifically for use
as an electron donor/carbon source in wastewater denitrification. MicroC(TM)
was engineered to overcome the key limitations of methanol and other carbon
sources, including: -- Improved Safety: MicroC G(TM) is nonflammable and
nontoxic
-- Environmental Sustainability: MicroC(TM) is developed from abundant and
renewable agricultural raw materials
-- Price Stability and Cost Effectiveness: MicroC(TM) offers a low-cost
means of reducing nitrogen load and the potential to circumvent or
scale back costly nitrogen-removal upgrades to comply with increasingly
stringent regulatory requirements
-- Improved Performance: MicroC(TM) enables faster denitrification startup
and recovery periods, and improved performance in colder temperatures

MicroC(TM) products are currently in commercial use at a large number of
wastewater treatment facilities in the U.S., and EOS recently introduced to
the market MicroC G(TM), a 100% green version of MicroC G(TM) with identical
performance factors that is composed entirely of renewable components.
About Stuart Mill Venture Partners (www.stuartmillvp.com)
Stuart Mill Venture Partners, L.P. is a $20 million Northern Virginia-
based fund investing principally in small- to medium-size companies with
substantial growth prospects. The fund has a special focus on the clean
technology sector but also considers investments in areas such as technology,
travel/hospitality, and federal government services. In addition to providing
growth capital, the fund offers experienced business guidance to its portfolio
companies.
ABOUT EOS (www.eosenvironmental.com)
Environmental Operating Solutions, Inc. (EOS) is an environmental
technology company providing innovative products for the purification of
water. The company's MicroC(TM) line of products (MicroC(TM) and MicroC G(TM))
target contaminant nitrogen at wastewater treatment facilities. EOS products
currently provide more than 185 wastewater treatment plants in the United
States with a safer, more effective, and environmentally sustainable solution
compared with other carbon sources such as liquid methanol. In addition, the
company offers technical services to help customers optimize the use of its
denitrification products. EOS was established in 2003 and is based in Bourne,
Massachusetts.
CONTACT:
Mary Moynihan
M2Friend Biocommunications
(802) 951-9600
mary@m2friend.com

SOURCE Environmental Operating Solutions

Mary Moynihan of M2Friend Biocommunications, +1-802-951-9600,
mary@m2friend.com, for Environmental Operating Solutions