June 2, 2010, Toronto – Forterra Environmental Corp. (TSXV: FTE), a manufacturer, marketer and seller of premium organic soil-enrichment products based on worm castings, today announced that the University of Guelph has granted the company an exclusive licence to market certain soil blends scientifically developed by researchers at the university.

Forterra has been a contributor to the development of the blends that are the result of a three-year research and development project. Under the five-year licence, which has a rollover provision for renewals, Forterra will pay a sales royalty to the university.

“The development of these high-end soil blends is great news, particularly for greenhouse organic vegetable growers as well as for home gardeners who can use these blends to improve their growing success for vegetables and other plants,” said Dr. Youbin Zheng, a researcher and adjunct professor at the School of Environmental Sciences. “In particular, the development of these new soil blends meets the needs of greenhouse growers who are challenged to obtain consistently high-quality organic growing substrates.”

The researchers mixed and tested 35 organic growing substrates. Two of the growing substrates produced higher marketable beefsteak tomatoes than the other organic growing substrates and rockwool. Both of the successful substrates used Forterra worm castings.

“Such vermicastings,” said Zheng, “are proven to contain beneficial microbes that can suppress some plant pathogens and therefore reduce the need for pesticide application.”

Forterra plans to sublicense its agreement with the University of Guelph to a third party that has an established significant penetration into the greenhouse and nursery sectors. The company has received inquiries from various potential partners who are well-entrenched in these sectors and who are well-suited to manufacture the scientific recipe for sales into the market.

The development of the new soil blends is the most recent result of the excellent relationship that Forterra has had for several years with the U of Guelph. Forterra has provided funding for research, testing, and validation projects, and currently is discussing future projects that would involve further scientific investigation into soil mixes and other solutions using the company’s worm castings as the base or as a carrier.

Forterra manufactures, markets, and sells environmentally friendly soil enhancers, using worm castings that boost fertility while restoring the soil with organic matter for sustainable, longer-term benefits, including stronger root growth, and drought and pest resistance.

Forterra products contain only organic material. They are ideal for golf courses, sports fields, lawn care, parks, nurseries, orchards, and vineyards. Essentially, Forterra uses red wiggler worms to convert organic material into vermicompost or worm castings. Worm castings contain micronutrients, which are required for healthy plant development. Worm castings also contain microbes, which increase the rate at which plants take up available macronutrients and micronutrients.