Eco Building Products, Inc. Distributes Letter to Shareholders

Eco Building Products, Inc. Distributes Letter to Shareholders 
Eco Red Shield Lumber Has Landed in the East for the Sandy Rebuild 
VISTA, CA -- (Marketwired) -- 06/28/13 --  Eco Building Products,
Inc. (OTCQB: ECOB) announces that the following letter is being
released to its shareholders:  
Dear Fellow Shareholders: 
With the first half of the year behind us, I wanted to take some time
to provide all of the shareholders with some valuable insight; useful
in navigating and understanding the Company's recent milestones and
relevant accomplishments that have effectively enabled the Company to
reach its intended business goals and we are now showing up in the
national supply chain with a large Big Box retailer. 
CROSSING THE BRIDGE INTO THE MAIN SUPPLY MARKET 
Moving forward with the Company's newly focused supply only
operation; a lean, reorganized and restructured company has
effectively transitioned from its previous business plan. Gone are
the days of turn-key, labor driven, red buildings; we are now well
positioned to support the supply chain side of the industry by way of
coating services and special orders sales. As of the previous
issuance of this letter, the Company was still in the process of
positioning for entry into the main stream market with the Company's
flagship product, Eco Red Shield protected lumber. Albeit we
consistently received multiple inquiries detailing attractive
business opportunities as offered by many sectors within the
Industry, the Company's leadership has chosen to cautiously approach
supply chain channel opportunities with a specific and predisposed
end-state in mind. Armed with a forward-looking approach and
conscious mindset, founded on the principles of maintaining
profitable margins, providing a competitively priced product and
assortment driven by consumer demand and market trends; the Company
has successfully and cost-effectively crossed the bridge into the
mainstream market. Our plan of creating primary demand through ECOB's
social media campaign driven by the company's vertical plan using E
Build & Truss summoned the attention of consumers making our product
a choice from the buyer, not the seller. We knew the lumber supply
side was still recovering and that what Eco created represents the
only real protection in the industry that offers affordable mold,
wood-rot decay, termite and fire protection for the entire
superstructure of wood framed construction projects.  
The company is still focused on innovations solving the problems
associated with raw lumber whether in structures or any types of
disaster related rebuilding. Eco Disaster Products now include
Disaster Break Coating that adds additional mold and fire protection
to existing raw lumber before buildings are closed in with siding. At
Eco we think tar paper and fabrics under siding allow water to rise
directly into the building and it provides a warm blanket for
termites to crawl right out of the ground and into the structure;
this also serves as the potential start for mold related problems
derived from landscape irrigation. Our coatings eliminate these
problems as we suggest tar paper and fabric should be used from the
window up, not down to ground level. We believe in making buildings
as water proof as boats; examples can be viewed by visiting
www.ecobmedia.com. Eco Defensive Fencing is protected by a coating
that adds mold, wood-rot decay, termite and fire protection to
fencing and fence structures; applied in a factory setting with an
additional coating providing Ultra Violet and weather protection
increasing the fence's life span while also serving as the first line
of defense in fire storms. Eco has launched a cleaning solution and
flood caulking; representing products that provide disaster victims a
defensive solution when rebuilding against future storms. 
THE ORIGINAL PLAN 
Throughout the course of the current quarter, the Company has
successfully established a supply relationship with a large national
retailer including direct in store sales, direct to distribution
sales and special order sales. The Company has also launched Eco's
Fire Break and Christmas Tree Protection products which are now
available on the retailer's web site. 
In the most recent weeks, the Company has leveraged an agreement to
catalyze the immediate launch of special order and direct to store
sales pilot programs, respectively. These programs, by virtue, enable
Eco to efficiently engage two specific test markets called pilot
programs that are now underway in the -- Northeastern US and Southern
California markets -- comprised of twenty-two select, retail stores.
Of the stores currently identified for participation in this program,
nine have been activated for special orders, including one standout
store that is now maintaining physical on-the-shelf inventory in
Copiague, Long Island. The remaining eight stores in the Northeast
test market are tentatively scheduled to become active in the direct
to store sales program, physically carrying a select product
assortment comprised of six SKUs, the week after Fourth of July
holiday weekend. The Southern California market pilot is scheduled to
begin in the coming weeks and will mirror the activation and in-place
operation currently underway on the East Coast. 
For more information on our program please visit our blog at:
http://ecob.net/index.php?p=blog 
 All active stores can be viewed on
our store locator at: http://ecob.net/index.php?p=products&id=152  
In conjunction with Eco's agreements with this large retailer, the
Company has created the National Account Manager position,
organically selecting a qualified candidate directly responsible to
the Company's CEO for the day-to-day account management and
supervision for all associated business as it pertains to the
aforementioned agreements. The newly selected National Account
Manager, Nathaniel Bruce, is currently in the process of training
stores and their associates within the test markets for activation in
the special order sales program and follow-on direct to store sales
program, respectively. 
AFFILIATE BUSINESS 
The Company's affiliate network has experienced success and
subsequent growth as a result of Eco's momentum created in the
Industry. With the paradigm shift in the lumber industry underway,
the acceleration toward the adoption of protected lumber is being
experienced by both the Company and our affiliates. Specifically,
Denver and Austin-based Eco Affiliates are now reaping the benefits
of the company's aggressive market and social media campaigns with
large multi-family projects in their regions. The affiliates
increased production within their respective regions has resulted in
repeat bulk orders of Eco's Red Shield chemistry; and with the
increase in red lumber being utilized on high-profile jobs serviced
by these affiliates, professionals within the Industry are taking
note, yet again supporting the shift away from raw, unprotected
lumber. 
INCREASED PRODUCTION TO MEET DEMAND 
As a result of the projected coating service sales volumes in support
of the large retail business channels, ECOB's Salem facility
continues to coat lumber shipped in directly from the Retailers
lumber producer creating a finished product for resale into the
retailer's locations. The increased production has been scaled to
meet the retailer's demand in which the Company has delegated the
controlled release of product and the speed of the roll to the
discretion of the Retailer, which in turn has created an environment
supportive of maximizing the Company's success in this program. 
Moreover, the Company is active in discussion with several US-based
financial institutions capable of providing funding to support Eco's
need to ramp output in all facilities. The need for automating
existing production equipment is now prevalent more than ever as
evidenced by the Company's Salem coating facility operating at full
capacity. While the need to purchase high-volume equipment represents
a significant financial requirement, this strategic move will not
have any effect on the manpower requirements needed to perform a
smooth, full-service operation. The new, high-volume, automated lines
will become operational and be positioned next to current production
equipment to safeguard against potential operational stoppages.
Furthermore, this new higher volume equipment will allow for
significantly higher production output to meet the anticipated
demand. 
MARKET DRIVERS 
1. One of the Company's primary goals of producing protected whole
house lumber readily available in most markets around the US creates
an "excuse free" environment for big national builders that continue
to use raw, unprotected lumber when mold claims are on the rise. 
2. If the predicted weather pattern changes become a reality, and
fire seasons start earlier in the year, our Eco Red Shield lumber
could become the product of choice in all rebuild scenarios. The key
to achieving these goals is through the application of ECO's value
added coating to all lumber products used in the rebuild markets
without creating havoc in the historical supply chain process; all of
which can be made possible through the constant production of high
volume coating facilities in and around the same locations where
timber is manufactured into lumber. As a result, this will facilitate
exponential growth for the Company's Affiliate Network capable of
supporting ECO's just in time business.  
3. What makes Eco Red Shield different in comparison to the green
pressure treated lumber readily available in all the retail lumber
facilities is the fact Eco's protected lumber is safe for use
throughout the whole house; not just for decking and sill plate
applications.  
4. We at Eco strongly feel that the super storm rebuilds are going to
accelerate the awareness of mold related issues and the inherent
insurance claims. This is evidenced by contractors and
Government-funded rapid repair organizations overlooking and cutting
corners pertaining to mold issues thereby fertilizing a potential
breeding ground for construction defect lawsuits.  
ECO'S TECHNOLOGY RECEIVES RECOGNITION 
Eco's lumber protection technology has received significant attention
in the realm of innovation and high-tech. In November 2012, Eco Red
Shield received a HOBI Award by the Connecticut Homebuilder's
Association for the "Best New Product of the Year"; in December 2012
the product received recognition at the 25th Annual CONNECT Most
Innovative Product of the Year (MIP) Awards; then again in April of
this current year, the product received 'Gold' at the Edison Awards
hosted at the Navy Pier in Chicago. The Company -- as a whole -- was
also recognized in April this year by Vista's Chamber of Commerce as
the Most Innovative Business of the Year.  
FINANCIAL INSIGHT AND DETAILS 
On May 31, 2013, The Company ("ECOB") entered into a Debt Assumption
and Equity Cancellation Agreement (the "Agreement") with Redwood
Management, LLC ("Redwood") and Manhattan Resources, Ltd ("MRL").
Terms of the Agreement can be found starting at page 22 of the
following link:
http://www.sec.gov/Archives/edgar/data/1409885/000112785513000448/ecobuilding10q
a2093012.htm.
The successful execution of this agreement has settled all
outstanding disputes with MRL allowing the company the ability to
move forth achieving our corporate goals. In concert with this
agreement the Company ("ECOB") entered into a Securities Settlement
Agreement (the "Agreement") with Redwood Management, LLC ("Redwood"). 
On or about May 14, 2013, Alpha Capital Anstalt initiated an action
against Eco Building Products, Inc., E Build and Truss, Inc. and
Seattle Exchange Coffee in the United States District Court, Southern
District of New York. The suit seeks $1,080,000. Alpha agreed to
assign the debenture to a third party which has paid Alpha $960,000
to the date of the suit. On or about June 7, 2013 a settlement to the
action from Alpha Capital Anstalt was agreed upon by all parties
involved. The agreement settles the dispute in full providing for
final payment to Alpha Capital Anstalt and a dismissal of the action
in the United States District Court, Southern District of New York. 
On June 14, 2013, Eco filed a preliminary proxy, form 14A, to
increase our authorized shares and approve a reverse stock split at a
special shareholder meeting. Let me assure all of my fellow
shareholders that these financial decisions are for the benefit of
the long term viability of the company and to support the upcoming
growth and sustainability of the business model. The increase in
authorized shares is to potentially assist the company to attract a
long term strategic investor and the reverse split will enable us to
obtain our future goal of up-listing ECOB to a nationally recognized
Stock Exchange so that Institutional Investors and Retail Brokers
that will not buy bulletin board companies can invest in ECOB. 
FOCUSED AND ON THE MOVE 
In closing, it is my desire 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, and we are committed to enhancing
value to our shareholders and the customers who have come to depend
on the products and services we provide. As this company shows up
into in the main supply chain, we are actively seeking strategic
institutional funding partners, and the Company is searching for a
permanent Chief Financial Officer. 
We thank you for your continued support and look forward to a
prosperous second half of 2013 as the foundation of this product and
company are ready to go. 
Sincerely, 
Steve Conboy; President - CEO 
About Eco Building Products, Inc.
 Eco Building Products, Inc. is a
manufacturer of treated wood products that are protected against
fire, mold/mycotoxins, fungus, rot-decay, wood ingesting insects and
termites by our proprietary eco-friendly chemistry utilizing ECOB
WoodSurfaceFilm(TM) and FRC(TM) technology (Fire Retardant Coating).
Eco Building products, "Eco Red 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/ecobuildingproducts 
Investor Relations Contact
Arthur Douglas & Associates, Inc.
Arthur Batson
Phone: 407-478-1120