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TheStreet Open House

Eco Building Products, Inc. Issues Letter To Shareholders

VISTA, Calif., July 26, 2012 /PRNewswire/ -- Eco Building Products, Inc. (OTCBB: ECOB.OB) the following letter is being released to its shareholders:

Dear Fellow Shareholders:

With the second half of the year underway, I thought it would be helpful to continue providing you with updates on pertinent goals and milestones achieved over the last six months and our thoughts for the future of ECOB. Despite the current housing market environment, our E Build & Truss division has experienced significant increase in releases on current contracts which tend to track the recent housing trends in the markets serviced. The Company's main goal is to continue creating a paradigm shift in the lumber industry towards the adoption and use of protected lumber.  The key to achieving this goal is to apply our value added coatings to all lumber products without changing the historical supply chain process.  In addition we needed to prove the efficacy of our coating methodologies as a critical component to our success. 

The Company announced on July 2 nd 2012 that Eco Red Shield tm coatings, manufactured by Eco Building Products, Inc., received an evaluation report (ESR# 3255) from ICC Evaluation Service (ICC-ES), providing evidence that Eco Red Shield protection against Wood Ingesting Organisms including Formosan Termites and Wood-Rot Decay now meets building code requirements. In addition, Eco Red Shield coatings offer the value added protection from Mold and Fire Inhibition. Building officials, architects, contractors, specifiers, designers and others utilize ICC-ES Evaluation Reports to provide a basis for using or approving Eco Red Shield coated lumber products in construction projects under the International Acceptance Criteria "AC433" Code. This is a significant milestone in proving our technology and providing the Company with a third party accreditation for wood-rot decay and termite protection. It is noteworthy that our Engineering Services Report (ESR) has eight approved manufacturing locations across the country. This achievement, long anticipated, is extremely significant and one of the most critical components allowing for the continued development of our business plan. Since receiving this achievement the Company has received acceptance of Eco Red Shield from several municipalities as approval for use in their cities as a direct substitute for sill plate material.

On March 26 th the Company announced that Eco Red Shield tm coatings have successfully achieved GREENGUARD Children & Schools Certification. The GREENGUARD Children & Schools Certification Program SM requires products meet strict criteria for emissions of volatile organic compounds (VOC's).  Selecting products that have achieved this certification helps ensure the creation of healthier indoor environments in which people will not be exposed to high-levels of potentially harmful chemicals. Furthermore, independent testing data from Air Quality Sciences (AQS) indicates that raw lumber does not meet California 01350 or GREENGUARD Children & Schools formaldehyde emissions limits.   When Eco Building Products compared emissions data from raw lumber to emissions data from the Eco Red Shield coated lumber, we discovered that Eco Red Shield coatings significantly reduced the natural formaldehyde emissions from raw lumber. The Company is extremely happy with the current state of the technology and the subsequent path forged by our achievements. The Company is determined to continue raising the bar for entry into our product category with the hopes of enjoying little to no competition for the foreseeable future.

Currently, there are no building codes certifying mold related claims. However the Company has spent significant capital on continued mold studies for the purpose of proving our products efficacy as detailed in the press release titled ECO BUILDING PRODUCTS SUCCESSFULLY COMPLETES AN IN-DEPTH SERIES OF MOLD AND MICROBIAL CONTAMINATION STUDIES released on May 31 st 2012.  The Company is working on a listing/certification for the purpose of accrediting the applicable value-added fire properties, as well as a city of Los Angeles approval report, Hawaii building code approval and certification in New Zealand and Australian markets for Eco Red Shield coatings further enhancing the market acceptance of our coating and worldwide approvals for the product.

Creating the Paradigm Shift:

The shift is underway; Eco Building Products has done an unbelievable job in the creation of market awareness campaigns.  The entire industry is watching our Company and the achievements we have reached. As previously stated, the lumber industry has not experienced much change for the past 100 years.  As humans, we become complacent in our daily regiments ultimately limiting success and advancement otherwise possible.  Many of the industry players have been surprised with the achievement of the Company's ESR report.  It is my opinion that Eco Red Shield is seen as a disruptive technology.  This product possesses the potential to completely change the game, just as the DVD did with the VCR or the MP3 with the record industry.  With the recent developments surrounding the Company's technology many industry professionals have been taken by surprise and aren't quite sure how to react.  ECOB recognized the ever-growing storm, and will capitalize on investment worthy opportunities as presented.  To meet the growth already experienced, the Company has increased its staff to assist in our strategic sales and awareness campaigns.  ECOB is armed with dedicated professionals whose jobs are to get the news to the architectural and engineering communities through educational programs and processes.  As a result, we have received positive feedback from the architects and engineers, as they have always embraced our product.  Now they have the ability to reference a building code classification for specification on the plans.  Eco Red Shield TM can now be specified on building plans, with no equivalent alternatives available.

The Company has created ECOB University, a platform primarily for architects and engineers to learn about Eco Red Shield technology while earning continuing education credits.  You can view ECOB University at http://www.ecobuniversity.com. All of our product achievements will naturally drive demand and revenues for the Company. The lumber industry, well known for complacency, coupled with the impossible appetite for change if overcome will create an enormous opportunity for those that can achieve the goal....this is the paradigm shift we are striving to achieve.

Market Opportunities: 

The Company has recognized that the housing market in the USA has been slow for recovery.  Currently the orders are ramping for all of our contract home builders with increased releases on every cycle.  Now that Eco Red Shield meets building code requirements, this will open up many more sales channels for us to address.  We are currently faced with many opportunities from the industry wanting to leverage our technology.  These opportunities range from mills to distribution all the way to end user pull through in big box retailers. We have had discussions with some of the largest suppliers of building assemblies looking to switch to Eco Red Shield technology.  It is my job as the CEO of the Company to listen to all the potential opportunities, however as prior stated the key to success is working within the current supply chain. Ensuring the Company makes the right moves with our technology and picking the proper direction is extremely critical to the future growth as it is hard to switch paths downstream. One of the future goals of the Company is to create ancillary product offerings leveraging our technology and building code achievements to create trim products, garden timbers, furring strips, pallet opportunities etc... there are so many places we can now attack that we will focus on the lower hanging fruit.

The Company is now at the point to compete head to head with the traditional pressure treated market.  This market is estimated to be approximately 4 billion dollars a year.  Currently Eco Red Shield coating is less expensive than traditional products with the value added benefits of mold and fire inhibition currently not part of the traditional market segment.  In addition, the Company markets its coatings for the entire super structure therefore opening up approximately 97% more of the lumber market.  Current distribution channels of traditional pressure treated lumber have shown great interest in carrying Eco Red Shield coated lumber as we offer superior protection at a lower price and provide an environmentally responsible message allowing retailers to increase margins.

E Build & Truss is currently on a contractual pace to build approximately 500 homes/units a year.  The company has ramped the sales and marketing efforts of this division with the hopes of exponential growth.  E Build & Truss is capable of building approximately 5000 homes/units a year. We have been talking to many home builders in the Southern California market with great interest to utilize our product and turnkey offerings.  Many of these companies have been waiting for our building code achievement to move forward. If the Company was able to secure contracts with production home builders to build 5000 homes/units and the housing market recovered to these levels, this would represent over one hundred million dollars in gross revenues to the Company. If the USA recovery stays on pace and/or the momentum continues to grow it is possible for E Build & Truss to reach a percentage of this goal within the next twelve months.

The Company has tapped into the world's appetite for housing.  This appetite is not going away and is increasing daily.  Many of the opportunities presented to ECOB have been very large undertakings in many different countries.  From the past years' experience, we believe ECOB has provided the best solution in the world to satiate this appetite.   ECOB is a supplier of technically advanced building materials offering high speed production of homes utilizing the latest American engineering techniques.  Many of the contemplated contracts have been stalled in the financing phases.  Recently, the Company has developed a relationship with InsurFinancial Group, headquartered in London.  InsurFinancial has been working in the world economy providing financing for infrastructure and housing developments in many of the world's emerging economies.  One of the first steps in a several prong business plan was for the delivery of a Stand by Letter of Credit (SBLC) for One Hundred Million Dollars ($100,000,000) drawn on the Bank of China.  The SBLC was provided to give ECOB the financial support on the balance sheet to guarantee performance of the Company in these emerging economy opportunities.  Now that the Company has a financial backstop, the opportunity for financing and the ability to handle large dollar orders should materialize.  The Company continues to explore off shore opportunities in the African Nations, Eastern and Western Europe and the Middle East with very active contract negotiations and the expectation that within the next twelve months ECOB will be a global player.

Taking our Story to the Next Level:

There are many ways to get the word out to the world. The Company uses some of the traditional channels via ad campaigns within industry media. We believe our story is bigger than this and we are now starting to leverage today's technology allowing us to create awareness through social media campaigns.  The Company has hired Creative Partners, a national media company, to assist in our marketing and social media explosion. The Company has joined forces with America's most influential personality in Home Improvement Media, Michael King "The Cajun Contractor," host of 'Home Talk USA' and 'Build American.' The Company created a media web site dedicated to video representation of our story. Please visit http://www.ecobmedia.net for a collage of videos on the ECOB story. In addition the Company is proud to announce the very first edition of a quarterly publication of the ECOB World News. This publication has been developed, and will be distributed in a completely digital format leveraging today's media delivery infrastructure.  The idea behind ECOB World News is to communicate corporate developments, affiliate activity, industry news, social-accountability achievements and home builder news and trends. The Company has been successful in offering advertising opportunities to our partners and complementing industry products offering a revenue opportunity.  Please take some time to view our spectacular pilot issue at http://issuu.com/ecobworldnews/docs/ecoworldnews_july2012_print.

One of our corporate goals is to strive towards being a socially responsible company providing assistance and opportunity to each other.  We fully believe that it takes the for profit companies to assist the nonprofit sectors with the ability to give back.  The Company has taken active roles in many global issues with the motivation to make a difference in the world.  We have assisted countries and communities with humanitarian efforts offering our products and services with hopes of making a difference.  Currently we have launched a Pledge2Vets campaign with the purpose to encourage American corporations and companies to consider veterans returning home from recent deployments for employment opportunities.  The Company has hired several vets with plans to consider veterans for all future positions as they become available. You can find more information on the awareness campaign at http://www.pledge2vets.com. We continue to support several other organizations in Africa with Reborn International.  Currently we are completing an episode of George to the Rescue Home Improvement show being aired nationally on NBC in late September. Our Company has rallied several suppliers to join in the rebuilding efforts for the home of Corporal Sherman Watson a three time Purple Heart recipient. Steve Conboy, President and CEO of Eco Building Products, has been deemed the expert construction manager for the project.

We understand there are some questions in respect to our relationship with Manhattan Resources Ltd. Currently we are in negotiations to complete final resolution to the future direction of this relationship. Please be assured that the Company is diligently seeking to arrive at an equitable resolution in the best interest of all parties.

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