STUART, Fla., June 3, 2013 (GLOBE NEWSWIRE) -- Ecosphere Technologies, Inc. (OTCQB:ESPH), a water engineering, technology licensing and innovative U.S. manufacturing company, today announced the positive financial implications that result from the Company selling 12% of its ownership interest in Ecosphere Energy Services ("EES") to Fidelity National Financial, Inc. ("FNF"), an existing EES member, on May 24, 2013 for $6 million. Ecosphere also announced that the Company and EES have entered into a Master Manufacturing Agreement, which provides for Ecosphere to be the exclusive manufacturer of all Ozonix® water treatment equipment and products for a two-year period. "The accounting triggered by the sale of our controlling interest in EES results in the recognition of a $28 million gain," stated David Brooks, Chief Financial Officer for Ecosphere Technologies. "Our balance sheet will now reflect the fair value of our remaining investment in EES and quantitatively illustrates the successful execution of our business plan of inventing, commercializing, licensing and selling our patented technologies. The stockholder deficiency reported in our first quarter balance sheet has now become positive stockholders' equity in excess of $17 million and the second quarter of 2013 will be the most profitable quarter in the Company's history, thanks to the realization of the value created in EES." Effective May 24, 2013, the Company will begin to account for its investment in EES using the equity method of accounting. The Company has also released an unaudited pro forma balance sheet in a Form 8-K, filed with the United States Securities and Exchange Commission, to reflect the Company's condensed balance sheet as of March 31, 2013, as if the FNF transaction and corresponding deconsolidation and equity method accounting occurred on March 31, 2013. The Company's filings are not incorporated in this press release. For more information, please visit: http://ir.stockpr.com/ecospheretech/sec-filings . Brooks continued, "It is important for our shareholders to understand that our business model involves multiple revenue streams, including manufacturing revenue, licensing fees and profit distributions from our subsidiaries. In 2012, EES unaudited revenues and net income were approximately $11.7 and $3.8 million, respectively. Moving forward, Ecosphere will recognize approximately 39% of EES net earnings and 100% of all profits generated from Ozonix® equipment sales and licensing revenue for industries outside of the energy field-of-use including, but not limited to, agriculture, environmental, industrial, marine, mining and municipal wastewater treatment applications."
Dennis McGuire, Chairman and Chief Executive Officer of Ecosphere, added. "We have built an extremely profitable energy division that is now recognized as a leader in the treatment and recycling of produced and flowback waters during hydraulic fracturing (or "fracking") operations. As opposed to water being disposed of in deep injection wells and lost for future generations, our patented Ozonix® technology has been used by major energy companies to treat and recycle over 3 billion gallons of water on more than 700 oil and natural gas wells around the United States, preserving vital water resources."McGuire continued, "We have proven that Ozonix® is a cost-effective replacement for liquid chemicals, while our customers have been able to reduce costs, increase production and protect the environment. It's a win-win for everyone involved. Whether it is an oil and natural gas well, a coal mining operation, a gold, silver, or copper mine, a power generation plant or a refinery; bacteria, microbiologically induced corrosion, sulfurs, irons, and heavy metals present real, persistent and costly threats to these industries. We believe that our proven, patented Ozonix® technology is the best available technology solution to address these challenges and look forward to expanding the use of Ozonix® across a wide variety of industrial wastewater treatment applications, replicating the value creation that has been delivered with Ecosphere Energy Services in recent years." About Ecosphere Technologies Ecosphere Technologies, Inc. (OTCQB:ESPH) is a water engineering, technology licensing and innovative U.S. manufacturing company that develops environmental water treatment solutions for industrial markets throughout the world. The Company is a leader in emerging advanced oxidation processes and has an extensive portfolio of intellectual property that includes five United States patents for the Ecosphere Ozonix® process. The patented Ecosphere Ozonix® process is a revolutionary advanced oxidation process that is currently being used by energy exploration companies to reduce costs, increase treatment efficiencies and eliminate liquid chemicals from wastewater treatment operations around the United States.
Since 2008, Ecosphere has enabled oil and gas customers to treat, recycle and reuse over 3 billion gallons of water on more than 700 oil and natural gas wells in major shale plays around the United States. Ecosphere was chosen by Bloomberg as a 2013 New Energy Pioneer and selected by IHS CERAWeek as a 2013 Energy Innovation Pioneer. Ecosphere is also a recipient of the 2012 Frost & Sullivan North American Product Leadership Award in Disinfection Equipment for Shale Oil and Gas Wastewater Treatment.For more information, please visit www.EcosphereTech.com . To receive timely information on Ecosphere Technologies, sign up for Ecosphere's email news alert system at http://www.ESPH-IR.com .
CONTACT: Investor Relations: Gary Dvorchak, CFA Senior Vice President ICR, Inc. +1 (310) 954-1123 email@example.com Press and Media Relations: Brian Ruby Vice President ICR, Inc. +1 (203) 682-8268 firstname.lastname@example.org Company: Corey McGuire Director of Marketing Ecosphere Technologies, Inc. +1 (772) 287-4846 email@example.com