EarthShell and Huhtamaki Sign Definitive Joint VentureAgreement.

BALTIMORE--(BUSINESS WIRE)--May 24, 1999--

Polarcup EarthShell Joint Venture to Commercialize

Environmentally Responsible Disposable Foodservice Packaging

EarthShell Announces Second Major Milestone in Two-Week Period

In a major industry announcement today,

EarthShell Corporation (Nasdaq: ERTH) and Finland-based Huhtamaki Oyj (Polarcup), the largest manufacturer of foodservice disposables outside North America, stated that they have signed definitive agreements establishing a new joint venture company, Polarcup EarthShell. This joint venture will commercialize EarthShell Packaging(R) for the foodservice industry throughout Europe, Australia and New Zealand. The joint venture will also address the Asian market on a country by country basis.

"The signing of this definitive joint venture agreement with Huhtamaki represents the achievement of a major milestone for EarthShell," said Simon K. Hodson, Chief Executive Officer of EarthShell Corporation. "As an industry leader with worldwide interests in food and food packaging, Huhtamaki is an excellent joint venture partner. Additionally, Huhtamaki's commitment to helping develop environmentally responsible products is consistent with EarthShell's philosophy."

This announcement follows by two weeks the accomplishment of EarthShell's first major milestone when the Company announced its readiness to ship its first commercial products.

"We're pleased to be taking this significant next step in our relationship with EarthShell, and to be able to offer our customers an environmentally responsible option without sacrificing performance or cost considerations," said Huhtamaki chief executive officer Timo Peltola. "It is exciting to be part of this packaging revolution and we believe that our customers will share in this excitement as well. EarthShell represents a strategic and important part of our future business plans to solidify and grow our existing market share."

Huhtamaki and EarthShell will immediately begin planning and engineering EarthShell's next manufacturing facilities for commercial production of an expanded product range beginning next year. "We feel our momentum building as we continue to lay the foundation for significant supply of EarthShell products to the foodservice industry," Mr. Hodson added. To reinforce the unique attributes of EarthShell Packaging, the EarthShell brand name and logo will be identified on each product in the marketplace.

Huhtamaki recently announced its intent to acquire Royal Packaging Industries Van Leer N.V., the makers of Chinet(R) brand disposable plates and bowls. If consummated, this acquisition would increase Huhtamaki's total packaging revenue to USD $3.3 billion.

"Through this partnership, Huhtamaki's customers will enjoy the benefits of EarthShell Packaging products that are environmentally sensible throughout their life cycle, from raw material sourcing to manufacturing and disposal," said Mr. Hodson. EarthShell products have been validated as biodegradable in the presence of air and moisture and are compostable.

The EarthShell material is a major breakthrough in packaging technology. This revolutionary material is made from abundant and renewable ingredients such as limestone, potato starch, recycled fiber and water. EarthShell Packaging has been designed with the environment in mind and meets the performance requirements of major foodservice operators.

EarthShell Corporation is engaged in the licensing and commercialization of proprietary composite material technology for the manufacturer of disposable packaging, such as cups, plates, bowls, and hinged-lid containers. EarthShell Packaging possesses competitive cost and performance features compared to other foodservice packaging materials, and also provides important environmental attributes.

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties of other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in the Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's most recent Form 10-K and other documents filed by the Company with the Securities and Exchange Commission.