Essential Innovations Signs Joint Venture Contract to Establish Manufacturing Plant in China

Business Wire, Oct 25, 2006

BELLINGHAM, Wash. -- Essential Innovations Technology Corp. (OTCBB:ESIV) is pleased to announce that it has signed a contract to establish a joint venture company in China for manufacturing of the EI Elemental Series of proprietary Geoexchange systems currently being produced in Canada by Essential Innovations Corp. ("EIC"), the ESIV wholly owned subsidiary.

The JV Company is to be a partnership between ESIV, Jiangsu Sifang Culture Industry Co. and Ekistics Town Planning. It is now planned that within 3-6 months the partners will work together to have the plant in China up and running and into full-scale production.

Stated Jason McDiarmid, President and CEO of Essential Innovations, "Manufacturing our technology in China will allow us to be extremely well positioned to take advantage of the enormous Chinese marketplace. In turn, it also allows us to become highly price competitive in the North American market as we expand on our existing distribution channels and project opportunities around the United States and Canada, by providing a product that will continue to meet our highest quality standards but that may be produced and distributed at a significantly discounted cost."

The structure of the JV contract calls for the parties to meet certain capitalization and business registration requirements so that the JV Company can be incorporated and operational in China within 60 days from the date of signing.

About Essential Innovations Technology Corp.

Essential Innovations is a Geoexchange Energy Service Company that utilizes proprietary turnkey Geoexchange systems and solutions to deliver heating, cooling and dehumidification, as well as domestic hot water to residential, commercial and institutional applications. The Company's unique "one-stop-shop" approach to Geoexchange technology applications incorporates all the requisite pockets of technological expertise required for "best-practices" design and implementation in one integrated package.

Additionally, Essential Innovations manufactures and distributes its cutting-edge Geoexchange System, the "EI Elemental Series." The EI Elemental family of products is a high-efficiency, eco-friendly comfort system providing heating, cooling, dehumidification as well as domestic hot water production for residential, commercial and industrial applications. Utilizing specifically R410A, the new industry-standard environmentally friendly refrigerant, and a proprietary controls package, the EI Elemental family of products ranges in size from 1.5 to 30 tons for forced-air heating/cooling, hydronic radiant floor heating, or a combination of both.

Essential Innovations currently has operations in the United States, Canada and Hong Kong; exclusive distributors in Canada and Mexico; and exclusive and non-exclusive sales agents in Mexico, Hungary, China and Alaska. Additional information may be found at www.eitechcorp.com and www.earthsource.ca.

Forward-Looking Statements:

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Investors are cautioned that such forward-looking statements involve risks and uncertainties. These statements include, but are not limited to, statements that do not describe historical facts and statements that include the word "believes," "anticipates," "expects," "plans," "intends," "designs," "projects" or similar language, as well as statements which may or may not occur in the future. These forward-looking statements are made as of the date of this news release, and Essential Innovations Technology Corp. assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our periodic reports filed from time to time with the Securities and Exchange Commission.