EFTI Earthfirst Technologies Inc (CE)

EarthFirst Technologies, Incorporated (OTCBB:EFTI) ("EarthFirst" or "the Company") today announced Electric Machinery Enterprises, Inc. ("EME"), a wholly-owned subsidiary of EarthFirst, entered into and consummated a Settlement Agreement and Release of Claims with Fluor Enterprises, Inc. and Fluor Daniel Caribbean, Inc. (collectively "Fluor"). EME, the plaintiff, agreed to accept and has been paid $1.1 million from Fluor, the defendant, in full settlement of all claims arising from the construction of the Four Seasons Resort at Emerald Bay Hotel in Great Exuma, Bahamas. The legal dispute stemmed from electrical contracting work completed on the project site by EME in mid-2004, while the Company was in Chapter 11 Reorganization and preceding its acquisition by EarthFirst Technologies, Inc. Consequently, the settlement was subject to review and approval by the United States Bankruptcy Court, Middle District of Florida, Tampa Division, and was subsequently approved by order of the Court. The settlement proceeds of $1.1 million will be booked as an extraordinary gain on EarthFirst's consolidated income statement in the first quarter of 2006. This is the first settlement of several claims that the Company is litigating in EME's bankruptcy proceedings. The claims, which in the aggregate exceed $15 million, have all been written-off by the Company. Accordingly, recoveries, if any, will be recognized as income when received. 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 wastes. 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.