``Stinging'' Report From EPA On Pesticides; EcoSMART Technologies Not ``Bugged'' by Report.

Business & Environmental Editors

NASHVILLE, Tenn.--(BUSINESS WIRE)--June 8, 2000

Some companies will be stung by the report issued today from the Environmental Protection Agency that takes a hard look at pesticide products, especially those containing chlorpyrifos, also known by the brand name Dursban. Not EcoSMART Technologies.

EcoSMART has developed and launched a new line of household products using plant oils in various formulations, under the brand name BIOGANIC(TM), some of which compete directly with those containing Dursban(R).

"We've never had chlorpyrifos in any of our products. It was never a consideration," said Edward Grindstaff II, general manager for BIOGANIC. "Our philosophy and business mission is to develop pesticides that people can use with confidence in their homes and around their children and pets."

BIOGANIC uses natural plant oils for the same reason plants use them -- to protect against and kill insects. BIOGANIC products were launched earlier this year in Florida and eastern U.S. Impressive sales results are rapidly moving the company toward national distribution.

"Our products counter a commonly held belief that an insecticide has to be very dangerous in order to kill bugs effectively and quickly," Grindstaff said. "We hope consumers will realize they can turn to BIOGANIC as an alternative to those containing chlorpyrifos."

BIOGANIC's active ingredients are made from plant and tree oils that are widely used to add flavor and aroma to many food, beverage and cosmetic products, including candy, frosting, pudding, baked goods, frozen dairy products and lipstick. Most notable the formula contains Eugenol, a steam distilled extract from cloves.

How BIOGANIC(TM) Works

Following eight years of research into how plant oils kill insects, EcoSMART Technologies identified the pathway of destruction and a common molecular structure found within these active oils, trademarked as Hexa-Hydroxyl(R). BIOGANIC products are developed by using a variety of plant oils containing this unique structure.

Hexa-Hydroxyl rapidly kills insects because it interferes with a key insect neurotransmitter, octopamine, which regulates the insect's heart rate, movement, behavior and metabolism. This same receptor is not present in people, pets, or other vertebrates. Conventional insecticides, on the other hand, target enzymes present in both insects and vertebrates. Therefore, Hexa-Hydroxyl(R) is the only active ingredient available in the marketplace that is truly selective, in that it targets receptor sites found only in invertebrates (insects).

What Studies Show, What Experts Say

BIOGANIC is the only insecticide to earn the right to display the Good Housekeeping Promises seal on all of its products.

In addition to its own laboratory and staff in Nashville, a Scientific Advisory Panel (SAP), consisting of key industry and university researchers, provides guidance and additional research and development capabilities to EcoSMART. Each panel member provides expertise in multiple facets of the business, including biology, toxicology, formulations, plant science, chemistry and entomology. Universities represented on the panel include Iowa State, University of California-Riverside, University of British Columbia, and University of Rochester.

BIOGANIC Products

BIOGANIC(TM) products include in-home insecticides that offer quick knockdown action against a broad range of insects including ants, palmetto bugs, cockroaches, dust mites, flies, fleas, wasps, scorpions and a host of other pests. The complete line consists of a Crawling Insect Killer, Flying Insect Killer, Wasp & Hornet Killer, and Dust Insecticide.

About EcoSMART Technologies

EcoSMART Technologies was founded in 1992 as a company aspiring to offer innovative products by using technologies found in nature. During the past eight years, EcoSMART has focused on research and development, working with some of the leading universities and scientists in the fields of plant science, entomology, toxicology, biology and chemistry to better understand and enhance the performance of plant essential oils in pest control. (Phone interviews with these experts are available by appointment, and complete technical packages are available by request.)

The company's Chairman and CEO is Douglas Grindstaff (former President of Procter and Gamble -- Canada). The General Manager of the BIOGANIC(TM) brand is Edward D. Grindstaff II (a former marketing executive with Kraft Foods). The company's founder and inventor of the technology is Steven M. Bessette (now the company's Executive Vice President and COO).

Pesticide Industry Facts

The Wall Street Journal (September 28, 1999) calculates the pesticide industry at $37 billion a year in sales and growing. Pesticides include herbicides, insecticides, fungicides and other products. Data from 1995 shows that herbicides represent about $14.5 billion in sales, followed by insecticides at $9 billion, fungicides at $6.5 billion and others at $2 billion.