ECO2 Financial signs deal with SPA Faucet

Business Wire, Dec 28, 1995

HAWTHORNE, Fla.--(BUSINESS WIRE)--Dec. 28, 1995--ECO2 Inc. (NASDAQ:TIRE)--ECO2 Financial Inc., a wholly owned subsidiary of ECO2 Inc. announced today that it has signed an asset based lending facility agreement with Spa Faucet Inc.

Terms of the deal are such that ECO will lend Spa Faucet monies at 2% over prime secured by all assets of Spa Faucet Inc. As additional compensation, ECO2 Financial Inc. will retain a 5% interest in Spa Faucet Inc. and be paid a commission equal to 1-1/2% of Spa Faucet's gross revenues. Spa Faucet Inc. is one of the fastest growing and profitable decorative faucet manufacturers in the country. The companies main clientle are Home Depot, Lowes, Payless Cashways and Home Base. ECO2 Financial Inc. is a recently formed subsidiary of ECO2 Inc. specializing in the leasing & financing of ECO2's pyrolysis units. As an adjunct, the new subsidiary is investigating other acquisition and finance opportunities, to broaden the scope of business for the newly formed entity.

Charles Ledford, company president said, "Spa Faucet Inc. represents the first of several profitable financing ventures in our future. We will continue to seek out opportunities, wherever they may lead us, to continue to enhance our shareholders' value. We anticipate closing other successful and profitable deals very shortly."

ECO2 Inc. is the manufacturer of the patented Tires-To-Energy Resource system, which converts waste tires into useable by-products in the form of oil, gas, steel and carbon. The system use heat in a continuous vacuum-sealed rotating cylinder which allows zero pollutants into the atmosphere and provides an acid-free environment. ECO2 Inc. pyrolysis system provides a solution to America's largest environmental problem. Three billion scrap tires stockpiled and more than a quarter of a billion added each year.

CONTACT: Charles Ledford

904/481-0187