EFTI Earthfirst Technologies Inc (CE)

EarthFirst Technologies, Inc. ("EarthFirst", or "the Company") (OTCBB:EFTI) and Cast-Crete Corporation ("Cast-Crete") provided the following update on their previously announced merger. The board approved merger which was originally announced on July 11, 2006, is targeted to close in 4th Quarter of 2006. Prior to closing, EarthFirst's shareholders of record will receive an information statement from the Company that will set forth the effective date of the 1 for 60 reverse stock split. EarthFirst's financial statements for fiscal year 2006 will be prepared on a restatement basis reflecting its combination with Cast-Crete financials as if it occurred at the beginning of 2006. In other words, EarthFirst annual report will include the complete 2006 year of Cast-Crete's operations. Commenting on the merger, Mr. John Stanton, Chairman and Chief Executive Officer of EarthFirst, said, "We are very excited about the upcoming merger and appreciate greatly the patience and support from the EarthFirst shareholders as we go through this diligent process. This is a monumental step in our commitment and strategy to delivering long-term shareholder value." -0- *T The following merger terms were announced on July 11, 2006: (1) EarthFirst will change its name to Cast-Crete; (2) EarthFirst will effect a 60-1 reverse split of its stock; (3) Total shares outstanding after the merger, and after the reverse split of the stock will be approximately 15 million shares; and, (4) The assets of Cast-Crete cannot be encumbered until acquisition debt is retired. *T The following Pro Forma earnings for the twelve month period ending June 30, 2007 was also provided for Cast-Crete's operations, based upon actual results for the six-months ended June 30, 2006. -0- *T TWELVE MONTHS PRO FORMA EARNINGS JULY, 2006 - JUNE, 2007 Sales $ 150,000,000 Earnings before interest and taxes 65,000,000 Interest expense on Acquisition Debt (25,000,000) Income taxes (16,000,000) --------------- Net Income $ 24,000,000 =============== Estimated Outstanding Shares 15,000,000 (Post 1 for 60 reverse split) Earnings Per Share (EPS) $ 1.60 *T The Company also announced that it will provide a technology update early in the fourth quarter of 2006. About EarthFirst Technologies, Incorporated EarthFirst Technologies, http://www.earthfirsttech.com, is a specialized holding company engaged in researching, developing and commercializing technologies for the production of alternative fuel sources and the destruction and/or remediation of liquid and solid wastes, and in supplying electrical contracting services to commercial and government customers internationally. Through its subsidiary World Environmental Solutions Company (WESCO), EarthFirst markets solid waste remediation plants utilizing a proprietary Catalytic Activated Distillation (CAVD) process, which is a superior technology developed by EarthFirst to recycle rubber tires and other waste by heating the material without burning it. Through its subsidiary Electric Machinery Enterprises, Inc., http://www.e-m-e.com, the Company provides electrical contracting services both as a prime contractor and as a subcontractor, electrical support for industrial and commercial buildings, power generation stations, and water and sewage plants in the US and abroad. Through its subsidiary EarthFirst Americas, Inc., the Company is engaged in the global development, marketing and distribution of biofuels. Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statement of EFTI officials are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future EFTI actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and EFTI has no specific intention to update these statements.