Ecosphere Serves Halliburton With $300 Million Demand for Arbitration

Ecosphere Serves Halliburton With $300 Million Demand for Arbitration

Halliburton Faces Allegations of Stealing Guarded Trade Secrets and Violating
Confidentiality Agreements

STUART, Fla., Feb. 21, 2013 (GLOBE NEWSWIRE) -- Ecosphere Technologies, Inc.
(OTCBB: ESPH), a water engineering, technology licensing and innovative
manufacturing company, today announced that its counsel Leopold Law has issued
the following press release:

  Ecosphere Technologies, Inc. ("Ecosphere") put Halliburton Energy Services,
  Inc. ("Halliburton"), on notice today of a Demand for Arbitration that is
  being filed with the American Arbitration Association, alleging that
  Halliburton took and disclosed Ecosphere's trade secrets and proprietary
  technical, business and strategic information. Ecosphere demands $300
  Million in damages in the filing, alleging specifically that Halliburton
  both breached a non-disclosure agreement with Ecosphere, and that
  Halliburton stole, converted or misappropriated Ecosphere's trade secrets,
  all relating to Ecosphere's green technology business model to treat and
  recycle water used during hydraulic fracturing or "fracking" operations for
  oil and natural gas.

  Ecosphere developed a novel business platform and supporting technology to
  treat and recycle "flowback" and "produced water" for use as a bacteria-free
  and scale-free fracturing fluid. The revolutionary platform not only
  provided an environmentally appealing alternative to the current system but
  also provided considerable cost saving measures. The average unconventional
  shale well requires 5.2 million gallons of clean water as a fracturing fluid
  to allow the release of oil and natural gas. After injection, the fluid that
  flows back up the wellbore is normally contaminated with heavy metals,
  volatile organic compounds and bacteria, and is treated as contaminated
  wastewater. Ecosphere developed a system to treat the flowback and produced
  water without the use of liquid chemicals, for use as a fracturing fluid.
  The breakthrough does and will continue to greatly reduce the environmental
  impact traditionally associated with hydraulic fracturing, and has been
  proven to significantly increase productivity in hydraulic fracturing
  operations.

  Ecosphere spent greater than $70 Million between 1998 and 2007 to develop
  its proprietary broad spectrum advanced oxidation process, now trademarked
  as Ozonix®, which uses ozone, hydrodynamic cavitation, acoustic cavitation
  and electro chemical oxidation to treat produced fluids. In 2008, Ecosphere
  developed the ability to use Ozonix directly at a well site, at the flow
  rate of the frack (up to 5,000 gallons per minute), thereby lowering the
  costs and environmental impact of both disposing of flowback and produced
  water, and sourcing new water to continue fracking. Ecosphere named the
  treated produced fluid Ecos-Brine®.

  In December 2008, Ecosphere field-tested the process at several horizontal
  Woodford Shale wells near Coalgate, Oklahoma, resulting in the publication
  of a scientific paper describing the success, entitled "Breakthrough Mobile
  Water Treatment Converts 75% of Fracturing Flowback Fluid to Fresh Water and
  Lowers CO2 Emissions". Soon thereafter, Ecosphere alleges that Halliburton
  faced significant political and public pressure to eliminate the toxic
  chemicals they sold to energy exploration companies, including the
  introduction in June 2009 of legislation called the "Fracking Responsibility
  and Awareness of Chemicals Act" aimed at closing the "Halliburton Loophole".
  Halliburton therefore approached Ecosphere to explore potential
  opportunities to work together.

  Ecosphere and Halliburton entered into a Joint Confidentiality Agreement
  that prohibited Halliburton from the unauthorized use or disclosure of
  Ecosphere's trade secrets and proprietary information, and pursuant to the
  Agreement provided Halliburton unfettered access to Ecosphere's
  technological, strategic and business trade secrets. After Halliburton made
  an offer to purchase Ecosphere and negotiations broke down, Ecosphere
  alleges Halliburton wrongfully used Ecosphere's trade secrets to immediately
  market itself as an environmentally friendly company, form a venture known
  as Blu Energy Solutions to "provide well-site recycling technologies and
  holistic water management solutions to the oil and gas industry with the
  goal of reducing disposal costs and minimizing waste volumes" and acquire
  trademarks and patents.

  Trial Attorneys Theodore Leopold and Gregory Weiss of Leopold Law, P.A. and
  Patent Attorney Michael Slavin of McHale & Slavin, P.A., both in Palm Beach
  Gardens, Florida, represent Ecosphere in this demand for arbitration. Upon
  submitting this claim, Mr. Weiss commented, "Halliburton clearly saw our
  client's innovative product as both a valuable asset and a threat to their
  own business model. We believe they deliberately ignored their obligations
  under the confidentiality agreement and misappropriated Ecosphere's highly
  guarded trade secrets for their own use." Michael Slavin added, "Ecosphere
  spent significant time and resources developing its cutting edge green
  technology trade secrets and related IP, only to have the highest level
  Halliburton decision-makers use them as their own."

For more information, please visit:

http://www.leopold-law.com/index.cfm?fuseaction=news.details&ArticleId=900&returnTo=press-releases

About Ecosphere Technologies

Ecosphere Technologies, Inc. (OTCBB:ESPH) is a water engineering, technology
licensing and innovative manufacturing company that develops non-chemical
water treatment solutions for industrial markets throughout the world. The
Company is a leader in emerging advanced oxidation processes and has an
extensive portfolio of intellectual property that includes five United States
("U.S.") patents for the Ecosphere Ozonix process. The patented Ecosphere
Ozonix process is a revolutionary advanced oxidation process that is currently
being used by energy exploration companies to reduce costs, increase treatment
efficiencies and eliminate liquid chemicals from wastewater treatment
operations around the United States.

A recipient of Frost & Sullivan's 2012 North American Product Leadership Award
in Disinfection Equipment for Shale Oil and Gas Wastewater Treatment,
Ecosphere has enabled oil and gas customers to recycle and reuse over two
billion gallons of water on more than 600 oil and natural gas wells in major
shale plays around the United States since 2008.

For more information, please visit www.EcosphereTech.com.

To receive timely information on Ecosphere Technologies, sign up for
Ecosphere's email news alert system at http://www.ESPH-IR.com.

The Ecosphere Technologies, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=12214

About Leopold Law

Leopold Law, P.A. is a boutique litigation firm with a proven record of
fighting injustice and our attorneys have over 100 years of combined
litigation experience. The firm is headquartered in Palm Beach Gardens,
Florida, with offices located at 2925 PGA Boulevard and can be contacted at +1
(561) 515-1400. For more information about Leopold Law, P.A., visit the
firm's website at www.leopold-law.com.

About McHale & Slavin

McHale & Slavin, P.A. limits its practice to intellectual property services,
including prosecution, litigation, and related transactional services. The
firm is located at 2855 PGA Boulevard, Palm Beach Gardens, Florida.For more
information, visit the firm's website at www.mchaleslavin.com.

CONTACT: Legal:
         Natasha Sugathapala
         Leopold Law
         +1 (561) 515-1400
         Natasha@leopold-law.com
        
         Investor Relations:
         Gary Dvorchak, CFA
         Senior Vice President
         ICR, LLC
         +1 (310) 954-1123
         gary.dvorchak@icrinc.com
        
         Press and Media Relations:
         Brian Ruby
         Vice President
         ICR, LLC
         +1 (203) 682-8268
         brian.ruby@icrinc.com
        
         Company:
         Corey McGuire
         Director of Marketing
         Ecosphere Technologies, Inc.
         +1 (772) 287-4846
         cmcguire@ecospheretech.com

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