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Toronto, Ontario - October 16, 2008 - Forterra Environmental Corp. (TSX-V: FTE-V), an emerging leader in the production and sale of premium organic soil-enrichment products based on worm castings, today announced that it is moving its manufacturing to a newly leased facility in the Township of Puslinch, Ontario, just south of Guelph.
"The new facility will enable us to expand our manufacturing capacity in a more favorable production environment and to relocate our head office into the plant. We will be paying lower rent for more space and realize other efficiencies that will result in annualized cost savings to Forterra of nearly $100,000," said Richard Denyes as president and chief operating officer. "We expect to complete our move into the new facility and be into production at the beginning of November."
The new facility is 51,000 square feet, about 24 percent larger than the 41,000-square-foot plant that the company currently is leasing in Downsview, Ontario. The lease for the new facility is for five years with an additional five-year leasing option and first right of refusal to purchase.
"The move to the new plant will enable us to double the current number of active worm beds from 800 to our planned 1,600 in January 2009. Additionally, the new facility offers improved air quality and non-chlorinated water that should be favorable for our production, and more space for our worm breeding operations, as well as improved loading and storage capacity," said Mr. Denyes.
The company is in the process of sub-leasing its current space in Downsview, Ontario and its current head office location. "Two other advantages of the new Puslinch location are that it is located nearer to what we view as major customer opportunities in the southwestern Ontario agricultural region and to the University of Guelph with which we have developed an important relationship in our development programs," Mr. Denyes added.
About Forterra Environmental Corp.
Forterra manufactures and markets environmentally friendly soil enhancers, using worm castings, which boost fertility while restoring the soil with organic matter for sustainable, longer-term benefits, including stronger root growth, and drought and pest resistance. Forterra products contain only organic material. They are ideal for golf courses, sports fields, lawn care, parks, nurseries, orchards, and vineyards. Essentially, Forterra uses red wriggler worms to convert organic waste into vermicompost or worm castings. Worm castings contain micronutrients, which are required for healthy plant development. Worm castings also contain microbes, which increase the rate at which plants take up available macronutrients and micronutrients. Further information is available on the company's website at www.forterra.com.
Forward-Looking Statements
This news release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, availability of resources, competitive pressures, changes in market activity, the ability to sign contracts with customers, the development of markets for worm castings, its ability to breed and maintain a sufficiently large worm population, and regulatory requirements. Risks and uncertainties about Forterra's business are more fully discussed in the company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada. Forterra assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements.
The TSX Venture Exchange Inc. has neither approved nor disapproved of the contents of this news release.
For further information: Investor and Media Relations Richard W. Wertheim Wertheim + Company Inc. Email: wertheim(at)wertheim.ca Phone: (416) 594-1600 Cell: (416) 518-8479
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