GreenMan Divests Tennessee Scrap Tire Business; Tennessee Plant To Be Closed By September 30, 2005; Divestiture Will Positively

GreenMan Technologies, Inc. (AMEX: GRN), a leading
recycler of over 30 million scrap tires per year in the United States,
today announced that it has entered into an Asset Purchase Agreement
with Tennessee Tire Recyclers Inc. under which all Tennessee contracts
and certain other contracts with suppliers of waste tires and
contracts to supply whole tires to certain cement kilns in the
southeastern region of the United States have been assigned to
Tennessee Tire Recyclers. GreenMan received no cash consideration for
these assignments and expects to record a non-cash loss on the
transaction of approximately $918,000 associated with the write-off of
goodwill relating the intangible assets assigned.
   Bob Davis, GreenMan's President and Chief Executive Officer said,
"We estimate the assumption of these contracts by Tennessee Tire
Recyclers and the pending closure of our Tennessee facility in
September will relieve us of obligations that have negatively
contributed to our operating losses over the past several years and
will positively impact our overall corporate cash flow by over
$150,000 per month. We anticipate the transition of assigning all
contracts to be completed within 90 days and will redeploy all
remaining Tennessee equipment to other locations during that
timeframe."
   Mr. Davis added, "Our efforts to reduce our operating costs,
negotiate more favorable terms with our existing secured creditors,
refinance existing long term debt and secure additional financing are
ongoing. We are committed to making the tough but necessary decisions
to ensure the future viability of GreenMan and continue to evaluate
all viable alternatives to achieve this objective with our primary
focus on our Southeastern operations".
   GreenMan was founded in 1992 and today is comprised of six
operating locations that collect, process and market scrap over 30
million scrap tires in whole, shredded or granular form. We are
headquartered in Lynnfield, Massachusetts and currently operate tire
processing operations in California, Georgia, Iowa and Minnesota.

   "Safe Harbor" Statement: Under the Private Securities Litigation
Reform Act

   With the exception of the historical information contained in this
news release, the matters described herein contain 'forward-looking'
statements that involve risk and uncertainties that may individually
or collectively impact the matters herein described, including but not
limited to the possibility that we may not realize the benefits
expected from our new Tennessee operation, product acceptance,
economic, competitive, governmental, seasonal, management,
technological and/or other factors outside the control of the Company,
which are detailed from time to time in the Company's SEC reports,
including the quarterly report on Form 10-QSB for the fiscal period
ended June 30, 2005. The Company disclaims any intent or obligation to
update these "forward-looking" statements.