ESIV - Organizational Update

BELLINGHAM, Wash., May 11  /PRNewswire-FirstCall/ -- Essential Innovations Technology Corp. (OTC Bulletin Board: ESIV; Frankfurt: E6S) is pleased to provide this corporate update to its shareholders and the investing public.

Stated Jason McDiarmid, President/CEO, "It has been some time since we reached out to the shareholder community to provide any direct guidance on the Company and our current focus.  During the latter part of 2006 and into the early part of 2007, it became evident that it was going to be necessary to make some significant operational and administrative changes to our organization, and in particular, to our subsidiary Earth Source Energy, so that we will ultimately be a successful and profitable enterprise. With this in mind, over our first two quarters of Fiscal 2007, we had to focus most of our resources towards the re-structuring, consolidation of physical operations and overall optimization of Earth Source Energy.  Having now made a majority of these changes, as we enter our third quarter of the Fiscal Year, we are much stronger, better managed and we have a definite path to profitability for Earth Source Energy.

The need to place much of our business emphasis on the stabilization of the operations of our subsidiary Earth Source Energy, detracted from our ability to maintain basic attention to our public market position and our other core business elements, those being, manufacturing, distribution and dealer support of our proprietary geothermal heat pump technology, and that of providing unique financing options for long-term geothermal loop-field infrastructure installation and management.

This said, as we move out of this time of internal reorganization we do so amidst many opportunities for our Company in North America and in Asia.  We wish to express to our shareholder base and the investment community in general that it should be noted that since this same time last year we have experienced substantial revenue growth, and an overall reduction of our operational losses, and with the momentum to be able to take advantage of the projects and distribution potential that we have in our business pipeline, we are confident that the organization as a whole can become profitable towards the end of 2007/early 2008.

Throughout 2006, during a period of more consistent news updates, we had provided some guidance as it related to our participation with specific projects such as Wakefield, Diamondview Estates, and CIPEA (China), as well as information about agreements we have in place for the rights to a unique geothermal loop-technology for which the Company has obtained certain exclusivity.  We wish to report here that all of the above continue forward in an exceedingly promising manner, each one representing an extremely positive step in our corporate evolution.  Beyond these explicit project and technology opportunities, we are actively working on many residential and commercial projects in the Canadian marketplace, while consulting, designing and negotiating on multiple further large-scale projects in the USA, Mexico, the Middle East and China.

We would also like to report that we remain driven to continue to develop global manufacturing & distribution initiatives, and we are striving to finalize contracts and negotiations that relate specifically to a high-profile sustainable community project in the Lower Mainland of British Columbia whereby alongside highly reputable third-party project development and financing partners, the Company is to provide certain elements of the engineering, drilling, installation, and equipment supply for this long-term geothermal utility solution.

Although the Company has had to go through some arduous experiences in recent months to solidify and regain a foothold on the current and future performance of the organization, on this day, we remain ever more optimistic with the fact that enormously positive results lie ahead for our Company and the long-term shareholders of ESIV."

Essential Innovations Technology Corp. provides cutting-edge Geoexchange solutions for residential, commercial and industrial applications as both a Geoexchange energy service company and as a manufacturer of proprietary geothermal heat pump technology.

Geoexchange technology harnesses the earth's clean, renewable thermal energy stored just below the surface or in large bodies of water for purposes of heating, cooling, domestic hot water and/or dehumidification.  A Geoexchange system is used to "exchange" the earth's natural heating and cooling properties between a building and the ground.  This non-combustion transfer of energy is the source of performance and environmental superiority, as Geoexchange systems need only a small amount of electrical energy to then capture, move and concentrate a large amount of free energy provided by the earth.

Essential Innovations Technology currently has operations in the USA, Canada and Hong Kong; exclusive distributors in Canada; exclusive sales agents or sales agents in Mexico, Hungary, China and Alaska; and the Company is now actively seeking manufacturing partners, further distributors, dealers and project opportunities throughout the North American and international marketplace for its proprietary Geoexchange systems and solutions.

Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future.  Investors are cautioned that such forward-looking statements involve risks and uncertainties.  These statements include, but are not limited to, statements that do not describe historical facts and statements that include the word "believes," "anticipates," "expects," "plans," "intends," "designs," "projects" or similar language, as well as statements regarding consumer or marketplace acceptance of the Company's new or existing products; comments concerning marketing and consumer acceptance of proprietary products; the potential benefits of Essential Innovations' products; initiatives undertaken by the Essential Innovations' divisions; the Company's research, manufacturing and facilities expansion programs; and the Company's growth, revenue, or projected earnings; all such statements which may or may not occur in the future.  These forward-looking statements are made as of the date of this news release, and Essential Innovations Technology Corp. assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.  Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no absolute assurance that such belief, plans, expectations or intentions will prove to be completely accurate.  Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our periodic reports filed from time to time with the Securities and Exchange Commission. 

DATASOURCE: Essential Innovations Technology Corp.



CONTACT:  Jason McDiarmid, President & CEO of Essential Innovations

Technology Corp., [phone], or fax, [phone],





Web site:  http://www.eitechcorp.com/ 

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