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FOR IMMEDIATE RELEASE

CARLISLE IOWA

 

CONTACT:

SHANNON GODWIN

515-333-4093

 

TUESDAY - OCTOBER 2nd 2007

GreenMan Technologies Acquire Welch Products, Inc.

Acquisition Leverages GreenMan's Crumb Rubber Manufacturing Capabilities and Creates Vertically Integrated Products Subsidiary with Enhanced Growth Opportunity

GreenMan Technologies, Inc. (OTC BB:GMTI.OB - News), a leading recycler of over 12 million scrap tires per year in the United States, today announced it has acquired Welch Products, Inc. The October 1, 2007 transaction was structured as a share exchange in which 100 percent of Welch Products' common stock will be exchanged for 8 million shares of GreenMan's common stock. GreenMan has completed the acquisition of approximately 98 percent of Welch's common stock and expects to acquire the remaining Welch common stock over the next few days.

Headquartered in Carlisle, Iowa, Welch Products specializes in design, product development, and manufacturing of environmentally responsible products using recycled materials, primarily recycled rubber. The company's patented products and processes include playground safety tiles, roadside anti-vegetation products, construction molds and highway guard-rail rubber spacer blocks. Through its recent acquisition of Playtribe, Inc., Welch also provides innovative playground design, equipment and installation. Welch Products has been a major crumb rubber customer of GreenMan for the past several years.

For the trailing twelve months ended June 30, 2007, Welch Products and Playtribe had combined unaudited revenues of approximately $3.5 million. Based on customer interest and quote activity, GreenMan expects continued growth in the second half of calendar 2007 and significant growth in calendar 2008 when Welch's EBITDA (earnings before interest, tax, depreciation and amortization) and net income are expected to be accretive.

Through the company's National Safe Surface Initiative®, Welch Products has created an emerging product line and unique patented marketing program focused on: (1) improving playground safety and accessibility; (2) lowering playground maintenance costs; and (3) mitigating playground liability risks for schools, community and state parks, and child care centers. Welch's Duromat Extended Life(TM) playground safety tiles are manufactured with a patented "cold-cure" process that allows high quality crumb rubber tiles to have a unique long life, even in extreme hot and cold temperatures. Additionally, a new market requirement created by the American Disabilities Act ("ADA") requires schools and other public playgrounds to provide all children access to outdoor play. Welch Products believes that loose-fill surfacing (e.g., wood chips, mulch, sand, and pea gravel) is rarely maintained to proper safety levels and does not allow children in wheelchairs or with other disabilities to easily use playground equipment. Welch Products' playground tiles are fully-ADA compliant and, during independent tests performed by the National Program for Playground Safety, demonstrated a 75 percent reduction in emergency room injuries given proper supervision.

The acquisition of PlayTribe, Inc., an innovative playground design, equipment, and installation company, provides playground equipment and recreational site amenities that encourage safe and imaginative play. Welch and PlayTribe are pioneering a unique, high-value-add sales strategy which circumvents the traditional distributor channels and sells directly to the end customer. This strategy has created enhanced customer satisfaction attributable to the companies' comprehensive approach to providing an overall solution for compliance, safety, accessibility, and turn-key quality installation.

Lyle Jensen, President and Chief Executive Officer of GreenMan Technologies, states, "Welch Products has developed strong brand names and high levels of customer satisfaction in the playground marketplace with premium products' compelling safety profile and endorsements by various public and private organizations. The marriage of GreenMan and Welch/Playtribe allows both companies to build on each other's strengths and opens up a new billion dollar market."

Welch Products' Interim Chief Executive Officer & Managing Partner of First Continental Group ("FCG"), Bruce Boland commented, "Our Welch and FCG people have spent a great deal of human and financial resources in developing the Welch Overall Solutions® Project. The objective was to prove the value of sustainable value-add products made from used rubber that put people to work, provide safety for children, and prove to be a wise use of taxpayer dollars. We believe the end-result of this merger will give the Iowa Legislature on both sides of the aisle, the National Program for Playground Safety from Cedar Falls, Iowa, and our hard working employees who designed and developed this unique project within the borders of Iowa, the recognition they justly deserve."

Mr. Boland added, "We feel this merger with GreenMan is based on a number of sound business decisions that match up the strengths of both companies and we are comfortable that Lyle Jensen can provide the necessary leadership to drive this next phase of our business model as we look to a stronger calendar 2008. In our view, this adds up to a win-win for our customers, school children, bi-partisan legislatures, and all shareholders going forward. We are very excited about the future of the combined companies and will continue to help our combined investment grow."

GreenMan Technologies pursues technological processes and unique marketing programs to transform recycled materials into renewable fuel, alternative energy, recycled feedstock, and innovative recycled products. Over twelve million tires are collected and recycled annually into tire-derived fuel, tire-derived aggregate, and crumb rubber feedstock for playground, athletic track and field, and road surfacing. Through the company's Welch Products subsidiary, the company develops and markets branded products and services that provide schools and other political subdivisions viable solutions for safety, compliance, and accessibility.

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