Ovation Products Reports Successful Testing of New Water Purification Technology

GreenShift Corp. announced its portfolio company, Ovation Products Corp. (Ovation), successfully tested a new production version of its patented water purification technology.

The new production version, named Gamma by Ovation's engineering team, is approximately three feet tall and one foot in diameter - about the size of a fire hydrant. Gamma's output water was tested and achieved the purity of distilled water. Gamma used approximately 54 watt-hours of electricity per gallon of distilled water produced, and Ovation anticipates the production units will achieve the design goal of 40 watt-hours per gallon, which translates into an electrical energy cost of approximately $0.004 per gallon, or an amount that is less than the cost of tap water in most areas.

Ovation has invested over $9 million in developing technology that offers dramatic price and performance advantages over competing clean water technologies. Ovation has been intensely working on finalizing the development of Gamma - a residential scale appliance designed to generate 25 gal of pure water per hour from a variety of dirty water input sources at a cost of approximately $0.004 per gallon, or about 1.2% of the cost of traditional home distillation methods.

To achieve this small size, low cost and high efficiency, Gamma incorporates patented new implementations of a proven distillation process called vapor compression. Ovation has been granted 11 patents for its technology and system and has filed for an additional five patents to date.

Distillation removes bacteria, viruses, heavy metals, suspended solids and almost all chemicals. Other processes such as ultra filtration and reverse osmosis do not produce perfect water quality, discharge several times more wastewater, degrade over time and require replacement of filters and cartridges. Ovation's products provide a consistent high quality output and require no filter or cartridges.

Ovation tested Gamma on November 17, 2005 and achieved targeted operating parameters in a series of progressive adjustments, which increased the output flow of distilled water from 12 gal per hour to 22 gal per hour. These results demonstrate a higher output than Ovation previously achieved from earlier designs, which were more than twice the size and weight.

Ovation expects to continue to refine Gamma's operation to achieve the 25 gal per hour benchmark, but the results of the Gamma testing were sufficient to justify releasing parts orders for a pilot run of 11 Gamma units. Ovation expects those pilot units will be assembled during the first half of 2006, and may be available for testing by existing and prospective strategic partners in the second quarter of 2006.

"This is an important development for an extraordinary technology," said Kevin Kreisler, chairman and chief executive officer of GreenShift Corporation. "The Ovation Purifier is designed to seamlessly and cost-effectively integrate with the daily lives of residential consumers. We see this as critical given our view that truly transformational environmental benefits can occur by properly leveraging the incremental contributions of a great many people. We had intended the Ovation Purifier to become one of the cornerstone 'killer-app' green technologies in our portfolio. The Gamma test confirms our expectations, and we have ordered one of the pilot Gamma units and plan to order somewhat more in the near term. We are thrilled with the results, and the Ovation design team should be commended for their hard work and ingenuity."

GreenShift Corp.

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