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• Accomplishments include improved breeding methods and increase in worm population to current level of approximately 20.4 million, addition of automated blending equipment and commencement of vermicompost production, successful move of manufacturing and head office to new location resulting in significant cost savings and improved operations
• After extensive evaluation, Forterra has reconfigured its plant for more efficient production and is ramping up manufacturing
• Company has sold product in 2009 to a number of major national and regional service companies and manufacturers of finished product who are carrying out trials

Puslinch, Ontario - April 30th, 2009 – 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 its financial results for the year ended December 31, 2008. Financial results conform to Canadian generally accepted accounting principles (GAAP) and all currency amounts are in Canadian dollars.

“Looking back at 2008, it was a year of considerable progress for Forterra, although this was not reflected in our financial performance,” said Donald Green, chairman and chief executive officer. “We have positioned Forterra for further progress in 2009 as we ramp up our production and add new significant customers.”

Mr. Green cited the following notable accomplishments in 2008.

• Forterra improved its worm breeding program as it refined its methods. After it purchased a total of 11,000 pounds of red wiggler worms in 2007 and 2008, it increased the total to more than 18,000 pounds at year-end 2008 (approximately 1,500 production beds, referred to as trays) and an estimated more than 20,400 pounds as at April 28, 2009 (more than 1,700 trays). The current retail price for worms is about $30 per pound. As there are an estimated 1,000 worms per pound, this indicates a total population of about 20.4 million worms as at April 28, 2009.
• The company commenced the production of vermicompost during 2008. It invested in automated blending equipment to ensure worm bedding materials and food stocks are metered and measured to ensure consistent quality. This in turn helps to ensure that Forterra’s end product is of consistent quality with respect to maintaining the same nutrient values for each batch produced.
• In the 2008 third quarter, Forterra decided to vacate its only plant, located at Downsview Park, Toronto, and to move to a new facility in Puslinch, Ontario. The leasing cost for the Puslinch plant is 21 percent lower than the Downsview location, while offering 25 percent more square feet of production and warehouse space, and, more importantly, better air and water quality required to ensure the health of the company’s growing worm population. The new facility also enabled the company to leave its former head office location in Concord, Ontario, for an additional annual savings in rent of $56,000, consolidating these operations with the manufacturing plant in Puslinch and bringing Forterra’s management closer to the daily operations. The company is currently in negotiations to exit the existing leases at the former Downsview and Concord locations. In all, Forterra expects that the move to the Puslinch facility will result in annualized cost savings of nearly $100,000.
• Forterra continues to test its products with various organizations for numerous turf, plant, floriculture, and viticulture conditions, including regeneration, disease control, and fertilization. The company’s goal is to produce the most-effective, consistent, high-quality organic soil supplements similar or superior to chemical-based products.
• Forterra strengthened its management team with the recruitment in June of Rick Denyes as its president and chief operating officer and the addition of a new plant manager in May 2008. In August, agronomist Tom Ferencevic agreed to serve as a consultant to the company. Mr. Ferencevic recently agreed to become a full-time employee. Subsequent to the 2008 year-end, the company also announced the appointment of Ron Reed as chief financial officer.
• Forterra succeeded in raising net proceeds of $2,241,129 during 2008 through the issuance of common shares in private placements. The company used the proceeds to pay debts and for general working capital.

Financial Highlights

Forterra continues to be considered a development-stage company for accounting purposes and, as such, the progress that the company is making is not fully reflected in the financial statements. As a development-stage company, its sales are applied to reduce sales and marketing expenses.

Sales for 2008 increased to $110,508, compared with $38,439 in 2007, as Forterra diversified its customer base.

After expenses, including general, and administrative (G&A) ($1,557,730), sales and marketing (net of sales amounting to $111,321), and research and development (R&D) ($5,954), Forterra recorded a lower operating loss in 2008 of $1,675,005 compared with the prior year. In 2007, the operating loss was $1,832,942 (including G&A of $1,564,805 sales and marketing expenses net of sales of $173,154, and R&D of $94,983).

The slight decline in G&A expense reflects, in part, vacancies in key management positions for parts of the year, as well as the capitalization of a portion of production labor as a component of inventory cost. Occupancy expenses also declined about seven percent. Marketing expenses were higher in 2007 reflecting certain one-time expenses, including website development and market research.

Other notable expenses in 2008 included stock-based compensation of $456,551 ($382,556 in 2007), amortization of property and equipment of $38,400 ($23,400 in 2007), and interest and accretion on long-term debt of $120,890 ($16,079 in 2007). In 2007, Forterra incurred a write-down of property and equipment of $1,631,786 and a write-down of intangible assets of $1,035,978.

The net loss for 2008 amounted to $2,241,477 (a loss of $0.03 per basic and diluted shares outstanding, which amounted to a weighted average number of 70,026,117), compared with a net loss in 2007 of $4,776,143 (a loss of $0.09 per basic and diluted shares outstanding, which amounted to a weighted average number of 53,817,614).

At the 2008 year-end, Forterra had working capital of $298,421, compared with a deficiency at the end of 2007 of $56,432. Subsequent to the year-end, on March 31, 2009, Forterra raised $600,000 through the issuance of debentures together with 2,400,000 of bonus shares through a non-brokered private placement. While this strengthened the company’s financial resources, Forterra will require additional capital to fund its operations and growth strategy.

Outlook

“We have completed an extensive evaluation of our manufacturing process required for the efficient production of commercial volumes of worm castings and related products,” said Rick Denyes, president and chief operating officer. “Based on this evaluation, we have reconfigured our production facilities and are ramping up manufacturing in the Puslinch plant.

“We also have sourced a more complimentary food stock and automated production equipment which will decrease the production cycle and associated costs. Equipment purchases and worm reproduction and related activities will influence production volumes. We expect that the Puslinch plant, which we only moved into late last year, will be operating at or near full production capacity by mid-2009,” he continued.

“A colder than anticipated spring 2009 has affected certain of the company’s customers, causing delays in their blending operations and the potential loss or at least deferral of some sales. This has in turn adversely affected Forterra’s sales expectations for the 2009 first quarter. We expect that at least some of these sales will be realized in the second quarter of 2009,” he said.

“Forterra has sold product to a number of major national and regional service companies and manufacturers of finished product who are carrying out trials during 2009. For competitive reasons, these customers are not permitting us to disclose their names. We believe that at least some of these companies will become longer-term customers for our products. Supplying these and other potential customers will require Forterra to establish additional manufacturing capacity by 2010,” Mr. Denyes said.

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 material 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.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this 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