Totally Green Reports Third Quarter 2011 Results

Totally Green, Inc.

 (PINKSHEETS: TLGN), a pioneer in organic food processing systems and compostable packaging alternatives, reported results for the third quarter ended September 30, 2011.

Q3 2011 Operational Highlights

• Oklahoma State University Athletics purchased the ORCA Green™ Machine for the Boone Pickens Stadium. Learfield Sports, a pioneer in the collegiate marketing industry, participated in the purchase decision, and plans to monitor the installation for potential use in its network of more than 50 university partners.
• Reasor's, a retail grocery store chain in Oklahoma with 15 locations, purchased the ORCA Green Machine following a successful pilot trial, with further roll out under consideration.
• The University of Texas Southwestern Medical Center purchased an ORCA Green Machine for its University Hospital - Zale Lipshy. This installation at Zale Lipshy marks UT Southwestern Medical Center's second ORCA Green Machine purchase, with the original machine currently in use at their University Hospital - St. Paul location.
• One of the nation's largest wholesale clubs purchased its fourth ORCA Green Machine.
• Installed ORCA Green Machine at Durango and Silverton Narrow Gauge Railroad, which has also become a seller of Totally Green's Ingeo™ Green Bottle Spring Water. The Railroad plans to partner with local restaurants in an effort to reduce the amount of food waste sent to landfills.
• Launched two ORCA Green Machine pilot trials for one of the largest supermarket chains in the U.S.
• Pilot trial program achieves 90% sales conversion rate since inception 18 months ago.
• New ORCA Green Machine installations totaled 12 machines in the quarter, as compared to 11 in the previous quarter and none reported in the third quarter of 2010.

Q3 2011 Summary of Financial Results Revenue in the third quarter of 2011 was $225,000, up 64% from $137,000 in the same year-ago quarter, as the company emerges from its development stage to initial commercial sales. The increase in revenue was primarily due to improving sales and market penetration of the company's ORCA Green Machine, as well as an increasing amount of recurring supply-related revenue.

Gross profit in the third quarter of 2011 was $95,000 or 42% of revenue, as compared to gross profit of $5,000 or 4% of revenue in the same year-ago quarter.

Net loss in the third quarter of 2011 was $427,000 or $(0.00) per share, as compared to a net loss of $361,000 or $(0.00) per share in the same year-ago quarter. The third quarter 2011 net loss included depreciation and amortization costs of $158,000, versus $ 139,000 in the same year-ago quarter.

Cash and cash equivalents at September 30, 2011 totaled $53,000, versus $127,000 at June 30, 2011. Totally Green has a $2 million line of credit designated for operations, of which approximately $439,000 was available at the end of the third quarter.

Financial Guidance For the fourth quarter of 2011, the company expects revenues of $200,000 to $220,000.

Management Commentary "The substantial increase in revenue over the same year-ago quarter reflects the increasing market penetration of our revolutionary ORCA Green Machine," said Nate Baker, president and interim CFO of Totally Green. "This growth is largely attributed to our 90% pilot conversion ratio for the ORCA Green Machine, which includes the continued adoption by one of the nation's largest wholesale clubs, as well as further traction in our government, hospital and university verticals.

"During the quarter, several new commercial targets approved our technology for company-wide adoption, and we expect purchase orders in the near future. Also in the pipeline are several new pilot trials, including one of the largest supermarket chains in the U.S.

"Meanwhile, we are in advanced discussions for strategic business partnerships with one of the world's largest dining service contract companies and a major Canadian waste management service company. A pilot trial with another U.S. military branch is also in the works. This activity demonstrates customer interest in our products is strong and growing, and that we are enjoying tremendous momentum going into the New Year. In fact, our certification for the ETL product safety mark is expected in January, which we believe will help further drive sales.

"In line with our previously announced plan to eventually become a fully reporting company with the SEC, we recently completed an independent audit of our 2009 and 2010 financial statements. These are available on our website starting today. We anticipate our first SEC filings will be completed in 2012, and for this to coincide with our up listing to the OTCQX or NASDAQ stock exchange. We plan to provide a review of our Q4 and full year 2011 on our next investor conference call in late February. This will include our objectives and outlook for 2012, as well as an update on some very big customer wins we're currently pursuing."

About Totally Green Totally Green, Inc. develops, manufactures, and markets the company's ORCA Green™ Machine and markets the Ingeo™ Green Bottle Spring Water. The ORCA (Organic Refuse Conversion Alternative) machine allows for rapid composting of most organic material in institutional and commercial end-user applications, after which the liquid compost is either returned to the soil as nourishment or disposed of through the ordinary sewer system. The machine creates meaningful cost savings for customers while diverting food waste from landfills and reducing methane gas production. Both products offer businesses and consumers innovative and affordable solutions for food & beverage by-product disposal. For more information, please visit www.totallygreen.com.

Important Cautions Regarding Forward-Looking Statements This press release contains "forward-looking statements." Forward-looking statements are statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, or performance, underlying (expressed or implied) assumptions and other statements that are other than historical facts. These forward-looking statements are only predictions. No assurances can be given that such predictions will prove correct. Actual events or results may differ materially. Forward-looking statements should be read in light of the cautionary statements and risks that include, but are not limited to, the risks associated with a small company, our comparatively limited financial resources, the uncertainty of market trends, the competition faced from other current and future technologies and the uncertainties of competitive pressures we face. These or other risks could cause actual results to differ materially from the future results indicated or implied in such forward-looking statements. We undertake no obligation to update or revise such statements.

                             TOTALLY GREEN, INC.
                          CONDENSED BALANCE SHEETS

                                   ASSETS

                                               September 30,   December 31,
                                                    2011           2010
                                               -------------  -------------
                                                (Unaudited)
Current Assets
  Cash & Cash Equivalents                      $      52,668  $      17,538
  Temporary Investments - Restricted                  25,000         25,000
  Trade Accounts Receivable                          209,498            700
  Accounts receivable - Other                         23,000          5,000
  Prepaid Expenses                                   362,641         12,641
  Inventory                                          320,366        130,816
                                               -------------  -------------
    Total Current Assets                             993,173        191,695
                                               -------------  -------------

Property and Equipment
  Machinery and Equipment                             45,400         38,640
  Accumulated Depreciation                            (7,624)        (2,760)
                                               -------------  -------------
    Property and Equipment, net                       37,776         35,880
                                               -------------  -------------

  Intangible Assets, net                             688,416        774,827

  Prepaid Marketing Fees                           1,137,550              -

  Other Assets                                        13,527         13,527

  Discontinued Operations - Assets                   536,987        681,167
                                               -------------  -------------

Total Assets                                   $   3,407,429  $   1,697,096
                                               =============  =============



                             TOTALLY GREEN, INC.
                          CONDENSED BALANCE SHEETS

                           LIABILITIES AND EQUITY

                                               September 30,   December 31,
                                                    2011           2010
                                               -------------  -------------
                                                (Unaudited)
Current Liabilities
  Accounts Payable                             $     195,189  $     172,014
  Sales Tax Payable                                    1,751              -
  Customer Deposits                                        -         27,962
  Dividends Payable                                   48,000         48,000
  Fees Payable                                       106,280        106,280
                                               -------------  -------------
    Total Current Liabilties                         351,220        354,256
                                               -------------  -------------

  Fees Payable - Long-Term                           216,773        216,773
  Line of Credit                                   1,561,102        603,009

                                               -------------  -------------
Total Liabilities                                  2,129,095      1,174,038
                                               -------------  -------------

Equity
  Common Stock - $0.001 Par Value, 750,000,000
   shares authorized 625,777,894 and
   587,732,546 shares issued and outstanding         625,778        587,733
  Preferred Stock
    Series A - $0.001 Par Value 1,900,000
     shares authorized, issued and outstanding         1,900          1,900
    Series B - $0.001 Par Value, 3,000 shares
     authorized, issued and outstanding                    3              3
  Additional Paid in Capital:
    Common Stock                                   4,565,373      2,703,418
    Preferred Stock - Series A                        55,100         55,100
    Preferred Stock - Series B                     1,149,997      1,149,997
  Retained Earnings (Deficit)                     (5,119,817)    (3,975,093)
                                               -------------  -------------
    Total Equity                                   1,278,334        523,058
                                               -------------  -------------

Total Liabilities and Equity                   $   3,407,429  $   1,697,096
                                               =============  =============



                             TOTALLY GREEN, INC.
                     CONDENSED STATEMENTS OF OPERATIONS
                                 (Unaudited)

                                        Three Months        Three Months
                                            Ended               Ended
                                     September 30, 2011  September 30, 2010
                                     ------------------  ------------------

Net Sales                            $          224,746  $          136,752

Cost of Goods Sold                              129,292             131,749
                                     ------------------  ------------------

Gross Profit                                     95,454               5,003

Selling, General and Administrative
 Expenses                                       520,937             401,588
                                     ------------------  ------------------

  Operating Loss                               (425,483)           (396,585)
                                     ------------------  ------------------

Other Income (Expenses)
  Other Income                                    1,743              36,000
  Interest Expense                               (3,415)                  -
                                     ------------------  ------------------
    Total Other Income (Expenses)                (1,672)             36,000
                                     ------------------  ------------------

  Net Loss                           $         (427,155) $         (360,585)
                                     ==================  ==================

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Company Contact: Nate Baker President & Interim CFO Totally Green, Inc. Tel [phone] Investor Relations Contact: Liolios Group, Inc. Scott Liolios or Chris Tyson Tel [phone]