GreenMan Technologies completes exit from tire-recycling business for US$27.5m

GreenMan Technologies, Inc. (OTCBB: GMTI), has announced that it has completed the divestiture of substantially all of the assets of its two wholly owned subsidiaries, GreenMan Technologies of Minnesota, Inc. and GreenMan Technologies of Iowa, Inc. to Liberty Tire Services of Ohio, LLC, a wholly-owned subsidiary of Liberty Tire Services, LLC for approximately $27.5 million in cash.

The sale of the tire recycling business subsidiaries enables GreenMan to focus on growth opportunities for its remaining
subsidiaries, Welch Products and GreenMan Renewable Fuel and Alternative Energy, Inc. Welch Products specializes in
design, product development, and manufacturing of environmentally responsible products using recycled materials, primarily recycled rubber. GreenMan Renewable Fuel and Alternative Energy, Inc.’s primary objective is to pursue licenses, jointventures, acquisitions and long-term contracts focused on the commercialization of existing and late-stage development products and processes in green-based technologies including renewable fuels and alternative energy. GreenMan used approximately $16 million of the proceeds of this sale to retire certain related obligations including approximately $12.8 million due its primary secured lender, Laurus Master Fund, Ltd under a June 2006 credit facility, and will have approximately $7 million of available cash after estimated transaction related income taxes and other costs.

Lyle Jensen, GreenMan’s President and Chief Executive Officer stated, “During the past year we have been shifting our focus to better capitalize on the opportunities we’ve seen in the development of recycled products and other green-based technologies.

Our team at Welch Products has made great progress forming partnerships with several states to promote the design and
construction of safe, environmentally sound and ADA compliant recreational areas and playgrounds. We are enthusiastic about the strides that have been made in the area of renewable energy and clean-tech technologies and look forward to further pursuing this new direction for GreenMan.”