Enzyme Environmental Solutions Inc (EESO)

[vantillian]

Enzyme Environmental Solutions Letter to Shareholders
Friday August 22, 8:56 am ET

FORT WAYNE, IN--(MARKET WIRE)--Aug 22, 2008 -- Enzyme Environmental Solutions Inc. (Other OTC:EESO.PK - News) -- The following letter was sent by Jared Hochstedler CEO of Enzyme Environmental Solutions Inc., to the shareholders of EESO.

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Dear Shareholders,

Since beginning in early 2008, I have seen EESO move from dream to reality. It has been a difficult road, one of which we continue to travel. The world's economies are in turmoil, unemployment is rising and financial markets have all but melted down, making reasonable financing extremely tight and difficult to obtain. However, all of that being said, I am encouraged with the progress we have made and wished to take this opportunity to update everyone on some major steps that EESO is about to embark on.

At the end of June 2008 I announced the signing of a letter of intent with VESCOR for the sale of the GC 2000. However, during the discussions and negotiations with VESCOR and with end user companies, it became increasingly clear to me that proceeding down the path I originally planned would have been extremely foolish in the long term planning and growth potential for EESO and our shareholders. Therefore, after careful consideration the Senior management of VESCOR and I have decided instead of selling the process to a larger company and then get a small percentage of the ongoing revenue from the sale of the separation units, we would build the prototype separation unit ourselves instead of selling the rights. This decision while it will slow the project down in the near term, I believe will add greater value to the company in the long term.

After doing additional market research we realized that the GC2000 project has much higher potential than originally thought. In addition, we have developed international and national contacts that have shown interest in seeing a completed prototype. This will allow us to be in charge of the end sales and demand a much larger profit for the technology. Whereas, the initial GC2000 project was being marketed at $7 million, of which EESO would have received 25%, by staying in control of the technology we believe the technology will potentially be worth closer to $30-40 million on an initial payment. Of course I fully intend to structure all future involvement with continued residual income for the life of the project.

During the negotiations it just became clear that we had not fully understood the tremendous value of the GC2000 technology and all of its applications. The estimated cost of the prototype including any additional testing could be up to $900,000 and I anticipate having a working prototype by the end of the year. I am happy to report that even though reasonable financing terms are difficult to obtain, I have negotiated and secured a line of credit up to $700,000. This line of credit will be in the form of an 8% interest only note maturing in one year. Our ability to negotiate these kinds of term shows the strength of our financial situation. The additional capital will be raised as needed, as part of the financing terms I must increase the authorized shares.

We continue to build the wholesale network of our sustainable product lines. The new website is taking a little longer than I had hoped for, but once completed each product page will have a demonstration video along with profiles and MSDS sheets available to be printed out. Additionally, I have contracted to have EESO products featured in 2 movies that are scheduled to be produced later this year enhancing the national awareness and credibility of the company. We are working on getting pioneers in the green movement as well as actors/actresses to endorse our product lines. With these endorsements comes credibility and our ability to leverage their contacts to increase sales. I look forward to releasing the names of the individuals once available.

Regarding the stain pen, I am happy to report that demand is growing. One of our largest customers at the last minute requested that we make a slight change to the graphics on the wipeout stain pen. This request delayed production by several weeks, however should produce positive affect on orders going forward. To date we have booked orders of over 500,000 pens.

Shipments of product to Convenience stores are progressing and products are being placed on the shelves at several stores. We also have just been added to a major restaurant equipment supplier for all of our cleaning products. This promises to open many other doors for future sales. And finally, the farm is currently being converted to an odor free farm so that we can use it as an example for international as well as domestic guests wishing to see the end result.

I would like to thank everyone for their patience as we build EESO. Please rest assured, my goal has always been to create long term shareholder value. These are exciting days and I am very optimistic as we continue to grow.


Best Wishes,
Jared Hochstedler

This letter to shareholders contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning it expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, the Company's ability to develop operations, the Company's ability to consummate and complete the acquisition, the Company's access to future capital, the successful integration of acquired companies, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition, sales and other factors that may be identified from time to time in the Company's public announcements.


Contact:

Contact:
Enzyme Environmental Solutions, Inc.
Jared Hochstedler
President/CEO
http://www.enzymeenvironmentalsolutions.com