Claims of Patent Infringement Against EarthShell Corporation are Dropped.

Business Editors

SANTA BARBARA, Calif.--(BUSINESS WIRE)--Aug. 10, 2001

EarthShell(R) Corporation (NASDAQ:ERTH), innovators of foodservice packaging designed with the environment in mind, announced today that the lawsuit brought by Italy-based Novamont S.p.A. ("Novamont") has been dismissed.

As part of the agreement between EarthShell and Novamont, EarthShell's rights to manufacture and distribute food service disposables through its operating partners are fully protected and expanded to include the application of Novamont's technology.

"EarthShell Corporation and its parent company, E. Khashoggi Industries, LLC ("EKI") have taken appropriate action to defend its unique and proprietary technology," said Scott Houston, Chief Financial Officer of EarthShell Corporation. Houston added, "We are pleased with the successful resolution of this dispute."

EarthShell Corporation is a material science company engaged in the licensing and commercialization of proprietary composite material technology for the manufacture of disposable foodservice packaging such as cups, plates, bowls, hinged-lid containers and sandwich wraps.

EarthShell Packaging is designed to be cost and performance competitive compared to other food service packaging materials, and also provides important environmental advantages.

EarthShell Packaging is designed with the environment in mind. It is made from a new-to-the-world composite material consisting primarily of abundant limestone and renewable starch. It uses less total energy and results in lower greenhouse gas emissions when compared to traditional rigid packaging.

EarthShell Packaging is strong and provides good insulation. It biodegrades in marine and composting environments, and is recyclable through composting.

For more information, please visit our web site at www.earthshell.com.

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.

Such forward-looking statements involve known and unknown risks, uncertainties of other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Factors that might cause such a difference include, but are not limited to, those discussed in the Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's most recent Form 10-K and other documents filed by the Company with the Securities and Exchange Commission.

www.earthshell.com