VISTA, Calif., Feb. 7,
2011 /PRNewswire/ -- Eco Building Products, Inc. (OTCBB:
ECOB.OB) The following letter is being released to its
shareholders:
Dear Fellow Shareholders:
With the start of the New Year now under way, I thought it would
be helpful to provide you with an update on the goals achieved over
the past twelve months and our thoughts for the future of ECOB. We
all know how tight the housing market has been over the past few
years. The Company's main goal is to create a paradigm shift
in the lumber industry towards protected lumber. The key to
achieving this goal is to apply our value added coatings to all
lumber products without changing the historical supply chain
process. In addition we needed to prove the efficacy of our
coating methodologies as a critical component to our success.
The following information illustrates how the Company is meeting
its' objectives through the achievement of various milestones over
the past year.
Creating the Paradigm Shift:
Many factors play into successfully implementing a paradigm
shift. The lumber industry has not experienced much change
over the past 100 years. The manufacturers have done an
excellent job in forest management allowing the world to continue
to experience great supply by figuring out how to grow trees in 30
years instead of 80 years. What has changed; the growth rings
of the solid sawn lumber. Grading rules and structural reviews have
not been updated in the past 30 years. To that end, today's
lumber is more porous, making it more susceptible to moisture and
termite infestation. Compounding the problem is rapid
urbanization that has propelled the termite population into an out
of control state. Today's lumber has more mold growth than
ever before creating health risks for all of us. ECOB has
taken on the challenge of providing protection for all vertical
framing members in wood framed construction providing moisture
control, inhibiting mold growth, encapsulating solids to prevent
wood rot fungi-decay, coupled with AF21 Fire Inhibitor to create a
value added fire protection never before available to the
everyday homeowner. All this protection is provided with one
coating of our technology that employs no carcinogens and virtually
emits no VOC's (Volatile Organic Compounds). ECOB has been
successful in maintaining our patent pending application for our
chemical composition as well as how we employ our wood coating
throughout wood framed structures. In order to create brand
awareness, I have personally reached out to many organizations
around the world offering our technology to assist in rebuilding
efforts from major disasters in areas like New Orleans, Japan and Haiti. USA housing starts are down approximately 60%
from the peak and are experiencing a very slow recovery. We
envision the world utilizing lumber as a viable building product to
meet the enormous housing demands within so many emerging
economies. We have proven to many countries'
governments that regardless of what materials the walls are
constructed from our buildings provide the best opportunity for
overall viable construction that can be erected with speed, less
cost, long-term viability, increased fire safety, termite
protection, earthquake safety, hurricane safety and no ground water
contamination for construction to meet the housing demands.
The Company has created the Eco Home division which is focused on
providing low cost affordable housing to meet the world's demands
in places like: Saudi Arabia,
Egypt, Jamaica, Haiti, Ghana,
Kenya, Turkey, Jakarta, Dubai and Papua New Guinea. We are
confident that the potential for the Company to secure a housing
development contract in an emerging economy is within our reach in
2012. The Company has expanded its manufacturing base via
affiliates and Company-owned factories all strategically located
around the USA. This will allow the Company to meet
production demands as the paradigm shift occurs. We have
connected the east and west coasts with our product, Red Shield™ Protection, and is
available at competitive prices. The company now has the ability to
handle the demands of the housing recovery that has begun in select
hot pockets. Another strategic move made by ECOB was the creation
of E Build & Truss, a wholly owned subsidiary, to provide the
local Southern California market
with a turnkey Framing and Truss manufacturing arm to supply
production home builders with the complete package of Eco Red
Shield coated lumber, labor and trusses. E Build & Truss
allows ECOB to break down the barriers of entry into the production
home builders. This bold move has proven extremely effective
with many homebuilder contracts releasing more and more housing
starts every month to the Company. As of the beginning of
this year the housing start releases have begun to significantly
increase versus this time a year ago.
Technically Advanced Building Material:
The Company has invested a significant amount of resources into
R&D and technical market acceptance with an eye to improving
the Eco Red Shield product line. Through the use of
independent wood scientists engaged by the Company, we have
successfully lobbied with the International Code Commission (ICC)
to create an acceptance criteria (AC) defining a market space in
the building codes for a topical borate treatment for wood
members. On June 20th, 2011 the
ICC adopted by unanimous vote a New Acceptance Criteria for Liquid
Borate Fungal Decay and Termite-resistant Treatment Applied to Wood
Members, AC433-0611-R1. This is a monumental triumph in
creating a code approved opportunity for Eco Building Products
moving forward. The Company is currently in process with all
of the testing requirements to meet the defined Acceptance
Criteria. The Company has engaged Louisiana State University Wood Durability
Laboratory to perform various testing for Termites, Corrosion,
Rot-Decay, Wood Fiber Strength and long term in field termite
testing. Our test results have fared very favorable for
Termite protection and Wood Rot-Decay. We have correlated our
results to prove efficacy utilizing half the traditional amount of
borate. This correlation proves that our coating methodology
works with the potential to be superior to traditional
methods. In addition, the Company is working closely with
independent consultants to create and implement a comprehensive
quality control program to meet industry standards of qualifying
Eco Red Shield treatments to meet AC433. The Company is far
along with all testing and quality control implementations and
expects to potentially meet AC433 requirements and receive an ESR
designation from the ICC by the end of first quarter 2012.
The creation of a building code (AC433) addresses a key element
(Termite Protection – Wood Rot/Decay) in the wood protection
offered by Eco Building products and will potentially open up
significant market opportunities. Once product certification
is achieved Eco Red Shield lumber products will meet industry
standard Use Categories UC1 and UC2 as defined by the AWPA
guidelines for usage of treated lumber. The
pressure-treatment industry generates roughly $4 billion annually (Source: CBS News,
February 11, 2009).
Approximately 65% of the treated wood components sold annually fall
into the UC1 and UC2 use categories opening up significant
opportunities for Eco Red Shield products as a direct substitute or
competitive product. Eco Red Shield coated lumber is
approximately 40% less cost than traditional pressure
treated wood and offers mold and fire inhibition as well.
Having achieved an ESR designation as defined by the ICC-ES process
will be recognized by every building official across the United States as well as over 200
countries worldwide.(Source: www.iccsafe.org) These technical
achievements allow ECOB to refer to Eco Red Shield protected lumber
as a Technical Advanced Building Material that will
open up new markets changing the way the world builds structures
and homes creating a paradigm shift in the lumber
industry and ultimately changing the world.
The Company is extremely happy to have achieved these goals in
2011. Looking forward, we are close to achieving our ESR
designation and obtaining an off shore housing contract. We
intend to fully leverage the infrastructure currently in place
allowing the Company to move towards its future goals of strong
revenue growth and profitability. I'm convinced that we are
on the leading edge of the lumber market and plan to work
diligently and passionately towards achieving those goals.
The Company has successfully created the space in the market for
our products by creating a cost effective supply with superior
performance. It is only a matter of time before the entire
world sees the impact of the Eco Red Shield billboards on the
landscape of their home town.
As we move forward from here, I want to assure all shareholders
that Eco Building Products is accessible to you. If at any
time you wish to express concerns or offer suggestions, you can
email us directly at info@ecob.net. We are listening, we are
changing, and we are committed to enhancing our value to our
shareholders and the customers who have come to depend on the
products and services we provide.
We thank you for your continued support and look forward to a
prosperous 2012.
Sincerely,
Steve Conboy; President -
CEO
About Eco Building Products, Inc.
Eco Building Products, Inc. is a manufacturer of proprietary
wood products treated with an eco-friendly proprietary chemistry
that protects against fire, mold/mycotoxins, fungus, rot-decay,
wood ingesting insects and termites with ECOB
WoodSurfaceFilm™ and FRC™ technology (Fire Retardant
Coating). Eco Building products, "Eco Red Shield",
"Eco Blue Shield" &
"Eco Clear Shield" utilizing
patent pending technology is the ultimate in wood
protection, preservation, and fire safety to building components
constructed of wood; from joists, beams and paneling, to floors and
ceilings.
Safe Harbor Statement: This press release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 (the "Act"). In
particular, when used in the preceding discussion, the words
"believes," "expects," "intends," "plans," "anticipates," or "may,"
and similar conditional expressions are intended to identify
forward-looking statements within the meaning of the Act, and are
subject to the safe harbor created by the Act. Any statements made
in this news release other than those of historical fact, about an
action, event or development, are forward-looking statements.
Forward looking statements involve known and unknown risks and
uncertainties, which may cause the Company's actual results in
future periods to be materially different from any future
performance that may be suggested in this release. ECOB takes no
obligation to update or correct forward-looking statements, and
also takes no obligation to update or correct information prepared
by third parties.
Company Contact
Eco Building Products,
Inc.
Phone: 1 888 Red Shld (888.733.7453)
Email: info@ecob.net
Web Site: www.ecob.net
Visit us on YouTube at: www.youtube.com/ecobluproducts
SOURCE Eco Building Products, Inc.