GreenMan to sell tire recycling operations for over $26 million

GreenMan Technologies, Inc. has entered into an agreement with Liberty Tire Services of Ohio, LLC, a wholly-owned subsidiary of Liberty Tire Services, LLC, to sell, subject to shareholder approval, substantially all assets of two wholly-owned subsidiaries, GreenMan Technologies of Minnesota, Inc. and GreenMan Technologies of Iowa, Inc. GreenMan expects the cash proceeds from the transaction will exceed $26 million and, subject to shareholder approval and the satisfaction of customary closing conditions, expects the transaction to close by the end of 2008.

GreenMan intends to use approximately $19 million of the proceeds to retire certain transaction related obligations, including approximately $13 million due its primary secured lender, Laurus Master Fund, Ltd, under a June 2006 credit facility.

If the transaction is completed, GreenMan will have minimal long-term debt and more than $5 million of available cash as it moves forward with its two remaining subsidiaries, Welch Products, Inc. and its newest subsidiary announced last week, GreenMan Renewable Fuel and Alternative Energy, Inc. Concurrent with the closing of this transaction, Liberty and GreenMan will enter a strategic multi-year feedstock supply agreement that will ensure an adequate supply of crumb rubber to support Welch’s growth objectives.

The Boards of Directors of GreenMan and Liberty Tire Services, LLC have unanimously approved the transaction.

Welch Products, Inc., headquartered in Iowa, has achieved approximately 100 percent revenue growth this year and has recently signed various state contracts demonstrating continued market penetration. Welch Products specializes in the design, product development and manufacturing of products using recycled materials made primarily from recycled rubber.