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Environmental Operating Solutions Completes Initial Tranche of $2.5 Million Institutional Financing
Date:3/18/2008

in size from small plants serving schools and condominium complexes to large municipal wastewater treatment facilities.

"With this financing, EOS is positioned to rapidly expand operations beyond our current Boston and Baltimore manufacturing facilities to serve our growing customer base nationwide and around the globe," said Eric Stoermer, President and Chief Executive Officer of EOS. "In addition, these funds will enable us to undertake the research and technical development required to engineer continuing improvements in our denitrification products and to develop new products, including products potentially derived from waste materials."

"Driven by increasingly stringent regulatory limits on the amount of nitrogen allowed into the environment, wastewater treatment facilities are seeking a safe and reliable upgrade for enhanced nitrogen removal," said Jeff Salinger, Managing Partner with Stuart Mill Venture Partners. "As this market expands, we believe that EOS' technical expertise and long-term commitment to innovation and product development will lead denitrification efforts as plants increasingly choose safer and environmentally sustainable products over methanol and other less consistent carbon sources. We look forward to being a part of EOS' success as the company builds its national and international production and distribution network."

About Wastewater Denitrification

Nitrogen pollution is an environmental problem worldwide. It is estimated that more than 10,000 water bodies in the U.S. are currently impaired by nitrogen or phosphorous pollution, with 49 states citing nutrients or excessive algal growth impairments. Nutrient pollution has been identified as the principal cause of water quality problems in the Chesapeake Bay, Long Island Sound, and North Carolina estuaries, as well as the continuing expansion of the Gulf of Mexico's "dead zone" -- a roughly 8,000-square-mile region that has very low oxygen concentrations and can
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