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Tuesday, 11/29/2005 9:03:10 AM

Tuesday, November 29, 2005 9:03:10 AM

Post# of 2970
GSHF GreenShift Acquires Stake in Electronic Scrap Recycling Corporation; Company is Developing Proprietary New Ferrofluid Recycling Process

MOUNT ARLINGTON, N.J.--(Business Wire)--Nov. 29, 2005--
GreenShift Corporation (OTC Bulletin Board: GSHF) today
announced its acquisition of an 80% stake in Electronic Scrap
Recycling Corporation ("ESRC"), an Indiana-based full service recycler
of electronic components.
Under the terms of its agreement with ESRC, GreenShift acquired
80% of ESRC's outstanding stock and received certain commercial rights
in return for 1.6 million shares of GreenShift common stock and
GreenShift's provision of technology rights, strategic business
development and other services.

E-Waste Recycling

Obsolete electronic equipment is a rapidly expanding problem in
today's economy. As technology continues to make significant leaps,
the life cycle of electronic products shortens dramatically. The
National Safety Council estimates that over 500 million obsolete
computers will be discarded in the United States alone. Additional
electronic devices such as cell phones, office machines and a host of
other products present problems not only to the environment, but to
the businesses, individuals and organizations that must deal with
their disposal. In addition to the bulk materials such as plastic and
steel, electronics also contains significant amounts of toxic
materials including lead, mercury, arsenic, chromium and more.
ESRC currently provides full service electronic waste ("e-waste")
recycling, logistics and Certified Data Destruction services to public
and private sector clients out of its 125,000 square foot facility in
Elkhart, Indiana.

Ferrofluid Separation

ESRC is developing a proprietary new ferrofluid process that is
capable of preferentially separating targeted compounds from a mixed
solid waste stream. Ferrofluids are liquids that are comprised of
nanoscale magnetic particles suspended in a carrier fluid and exhibit
novel properties when exposed to specific magnetic fields.
Conductivity, viscosity and volatility can all be manipulated through
the selection and sizing of the particles and the application of
specific magnetic fields.
Importantly, ESRC's ferrofluid process can enable the preferential
separation of targeted compounds out of a mixed micron sized powder.
This can be important because GreenShift's Tornado Generator(TM)
technology cost-effectively grinds, desiccates, and atomizes solid and
liquid wastes and other materials into micron sized powders.
ESRC plans to use its ferrofluid process, the Tornado
Generator(TM) technology, GreenShift's existing plastics and metal
separation and other technologies, and some conventional process
technologies to dramatically decrease capital costs and improve
operating efficiencies for processing e-wastes.
Brett Oliphant, ESRC's chief executive officer, said that "Our
view is that the e-waste recycling industry is becoming a
commodity-driven business. Tipping fees will eventually give way to
commodity sales as the value of the plastics and metals in e-waste
begins to govern the economics of the industry. We believe that, when
this time comes, the relative operating efficiencies of e-waste
processors will define who survives and who does not. Our strategic
plan therefore is to invest in technologies that drive operating costs
down while we acquire small- to medium-sized e-waste brokers and
processors to consolidate volume. We believe that GreenShift will help
us on both fronts and we are very excited to have their support."
"E-waste recycling is a compelling challenge that we intend to
address with our investment in ESRC," added Kevin Kreisler,
GreenShift's chairman and chief executive officer. "ESRC's existing
volumes of e-waste and positive cash flows are strategic to our
existing technologies, their technology has some fascinating
potential, their approach to the market is dead on, and their business
presents us with a platform to acquire significant market share. We
are excited by this investment and we intend to provide ESRC with the
resources it needs as it scales its business."

Technology and Manufacturing Rights

Under GreenShift's agreement with ESRC, ESRC will assign its
technologies and intellectual property rights to GreenShift Industrial
Design Corporation ("GIDC"), a wholly owned GreenShift company, who
will in turn provide ESRC with non-exclusive license rights to all
current and future GIDC technologies, including its Tornado
Generator(TM) and plastic waste separation technologies.
GreenShift's agreements with ESRC also provide for right of first
refusal manufacturing rights to ESRC's planned new e-waste recycling
equipment and products for INSEQ Corporation (OTC Bulletin Board:
INSQ), another GreenShift portfolio company.

About GreenShift Corporation

GreenShift Corporation is a publicly traded business development
company (BDC) whose mission is to develop and support companies and
technologies that facilitate the efficient use of natural resources
and catalyze transformational environmental gains.
BDCs are regulated by the Investment Company Act of 1940 and are
essentially publicly-traded equity funds where shareholders and
financial institutions provide capital in a regulated environment for
investment in a pool of long-term, small and middle-market companies
through the use of senior debt, mezzanine financing, and equity
funding.
GreenShift plans to use equity and debt capital to support and
drive the value of its existing portfolio of companies and to make
investments in a diversified mix of strategically compatible growth
stage public and private businesses and technologies. GreenShift's
current portfolio includes investments in the following
environmentally proactive companies:

-- Veridium Corporation (OTC Bulletin Board: VRDM);

-- INSEQ Corporation (OTC Bulletin Board: INSQ);

-- GreenWorks Corporation;

-- GreenShift Industrial Design Corporation;

-- Ovation Products Corporation;

-- Tornado Trash Corporation;

-- Mean Green BioFuels Corporation;

-- Ethanol Oil Recovery Systems, LLC;

-- Sterling Planet, Inc.;

-- TerraPass, Inc.;

-- Aerogel Composite, Inc.;

-- Air Cycle Corporation;

-- Electronic Scrap Recycling Corporation;

-- Coriolis Energy Corporation;

-- Hugo International Telecom, Inc.; and,

-- TDS (Telemedicine), Inc.

Additional information regarding GreenShift Corporation is
available online at www.greenshift.com.

Safe Harbor Statement

This press release contains statements, which may constitute
"forward-looking statements" within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934, as amended by the
Private Securities Litigation Reform Act of 1995. Those statements
include statements regarding the intent, belief or current
expectations of GreenShift Corporation, and members of their
management as well as the assumptions on which such statements are
based. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking
statements. Important factors currently known to management that could
cause actual results to differ materially from those in
forward-statements include fluctuation of operating results, the
ability to compete successfully and the ability to complete
before-mentioned transactions. The company undertakes no obligation to
update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to
future operating results.

GreenShift Corporation
Jim Grainer, 973-398-8183
Fax: 973-398-8037
investorrelations@greenshift.com
www.greenshift.com
or
CEOcast, Inc. for GreenShift Corporation
Ed Lewis, 212-732-4300

Copyright Business Wire 2005
29Nov05 13:51 GMT
Symbols:
us;GSHF
Source BW Business Wire
Categories:
MST/I/CHM MST/I/ICS MST/I/OIS MST/I/POL MST/L/EN MST/R/NME MST/R/US
MST/R/US/IN MST/R/US/NJ MST/S/MRG TGT/BWB


L~



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