NOVEMBER 2008

Blue Earth Solutions raises $14.1 million from new investors

Blue Earth Solutions, Inc. announced the closing of a private placement with gross proceeds of approximately $14.1 million. The private placement was oversubscribed. The company only sought to raise $10 million initially but expanded it due to demand. The sale consisted of approximately 28 units, each holding 50,000 shares of Series C Preferred Stock with voting rights, conversion features, dividends and a liquidation value of $10.00 per share. Conversion rights include warrant coverage at an exercise price of $8.00 per share until December 31, 2010. The private placement is subject to all regulatory approvals.

The proceeds of the private placement will be used to accelerate expansion into new locations, secure new facilities and capital equipment, evaluate international growth opportunities and fund general administrative and working capital requirements.

In connection with Blue Earth’s investment, it has finalized a $4.1 million purchase order of eight new StyroSolve™ extrusion systems, which will add production capacity of approximately 20,000 lbs. of polystyrene recycling per hour. The polystyrene product market is estimated at $27 billion annually, extending throughout industrial, commercial and consumer markets.