GreenShift Executes Agreement to 
Invest in Ovation Products

Revolutionary New Clean Water Appliance Purifies Water from Sewage and Other Wastewaters

MOUNT ARLINGTON, NJ (08/10/05) -- GreenShift Corporation (OTC Bulletin Board: GSHF) today announced its execution of agreements to invest in Ovation Products Corporation, a development stage company with patented and proprietary technologies involving new implementations of vapor compression distillation.

Ovation has invested over $9 million developing technology that offers dramatic price and performance advantages over competing clean water technologies. Ovation is finalizing the development of its initial product, the Clean Water Appliance -- a fire-hydrant sized appliance that can generate 25 gallons of pure water per hour from a variety of dirty water input sources at a cost of approximately $0.004 per gallon, or about 1.2% of the cost of traditional home distillation methods. Ovation expects that its Clean Water Appliance will be available in the fourth quarter 2005 and will sell for a fraction of the price of commercial distillation systems.

To achieve this small size, low cost and high efficiency, Ovation's products incorporate patented new implementations of a proven distillation process called vapor compression. Ovation has been granted 11 patents for its technology and system, and has filed for an additional 5 patents to date.

Vapor Compression Distillation

Distillation is the "gold standard" for water purification in that it removes bacteria, viruses, heavy metals, suspended solids and almost all chemicals. It is the single most effective method for purifying water. Other processes such as ultra filtration and reverse osmosis do not produce perfect water quality, discharge several times more wastewater, degrade over time, and require replacement of filters and cartridges. Ovation's products provide a consistent high quality output and require no filter or cartridges.

"Most distillation methods lose a lot of energy in the form of heat," said Bill Zebuhr, Ovation's chairman, founder, chief technology officer, and the inventor of Ovation's technology. "It takes 1,000 BTUs to vaporize a pound of water, which is equal to about a pint. Purifying water accordingly costs about $0.35 per gallon with a conventional home distiller. Vapor compression distillation enables the iterative recovery and reuse of the heat of vaporization to evaporate successive batches of water while dirty concentrate is continuously discharged from the system."

Zebuhr has refined the efficiency of Ovation's technology to the point where Ovation has been able to reduce energy loss by over 98% and distill water for about 1.2% of the cost of traditional home methods. Ovation believes that the Ovation Clean Water Appliance is the most efficient commercial distiller in the world, of any size.

The Water Purification and Treatment Industry

Due to the decline in water quality or access to potable water, several million people die every year from water contaminated by solvents, pesticides, industrial wastes, lead, and other pollutants. The World Health Organization estimates that, globally, nearly 3.5 billion people are without potable water or basic sanitation, and quantifies the costs associated with this problem at approximately $11.3 billion by 2015. While most of these deaths occur in developing countries, some also occur in industrialized countries.

Within the United States, much of the population lives in metropolitan areas with established water and wastewater systems in place. However, many of these existing, older water and wastewater systems are in desperate need of repair. Industry consultants estimate that between 10% and 40% of water transported via the existing water systems is lost through leakage and inaccurate metering. Also, more individuals are moving to less developed areas, with the most rapid population growth occurring in resource-constrained areas with underdeveloped and inadequate infrastructure. Compounding this strain is that many of the regions experiencing the rapid growth also have significant water scarcity issues.

Additionally, various industries use significant amounts of water in the fabrication of products and the cooling and washing of equipment. For example, in the semiconductor industry, approximately 2,800 to 3,200 gallons of water are required to make a single eight-inch wafer. These high-water demand industries are looking to cut costs by maintaining clean water in the process loop via water treatment systems that discharge a minimum amount of effluent.

The overall result of the increasingly limited supply of drinking water, economic expansion, the increasing need for large quantities of purified water by commercial and industrial companies, heightened public health and safety concerns relating to drinking water, and the promulgation of stringent, complex, and costly governmental regulations is an increased demand on the water purification and treatment industry to develop efficient cost-effective water-treatment systems for various sectors of society. These sectors include the household, consumer, bottled water, commercial and industrial, municipal and waste treatment markets, among others.

Ovation's Business Model

Ovation does not currently anticipate selling stand-alone products to the public or as a stand-alone appliance. Instead, Ovation anticipates working with key strategic partners in a number of industries that will integrate Ovation's distillation technology into a variety of appliances, products and services. Ovation will design, market and manufacture different component distillers, which utilize its core distillation technology and are built to meet specifications requested by its corporate partners. Because of Ovation's unique technology and strong patent position, it has been and expects to be able to negotiate favourable licensing terms with its corporate partners for specific applications. Additionally, Ovation plans to sub-contract manufacturing of its Clean Water Appliance and parts to one or more specialty metal manufacturers.

"We have successfully developed our technology to the point where it is cost-effective at the residential scale," said Bob MacDonald, Ovation's chief executive officer. "We believe that this is a tremendous achievement that can have profound implications on how we use our water resources today."

The overall result of the increasingly limited supply of drinking water, economic expansion, the increasing need for large quantities of purified water by commercial and industrial companies, heightened public health and safety concerns relating to drinking water, and the promulgation of stringent, complex, and costly governmental regulations is an increased demand on the water purification and treatment industry to develop efficient cost-effective water-treatment systems for various sectors of society. These sectors include the household, consumer, bottled water, commercial and industrial, municipal and waste treatment markets, among others.

Ovation's Business Model

Ovation does not currently anticipate selling stand-alone products to the public or as a stand-alone appliance. Instead, Ovation anticipates working with key strategic partners in a number of industries that will integrate Ovation's distillation technology into a variety of appliances, products and services. Ovation will design, market and manufacture different component distillers, which utilize its core distillation technology and are built to meet specifications requested by its corporate partners. Because of Ovation's unique technology and strong patent position, it has been and expects to be able to negotiate favourable licensing terms with its corporate partners for specific applications. Additionally, Ovation plans to sub-contract manufacturing of its Clean Water Appliance and parts to one or more specialty metal manufacturers.

"We have successfully developed our technology to the point where it is cost-effective at the residential scale," said Bob MacDonald, Ovation's chief executive officer. "We believe that this is a tremendous achievement that can have profound implications on how we use our water resources today."

"The philosophy underlying Ovation's technology is perfectly aligned with GreenShift's focus today," said Kevin Kreisler, chairman and chief executive officer of GreenShift. "We believe that we can enable substantial environmental gains by developing and supporting practical solutions that make it easy and cost-effective for residential and commercial consumers to reduce waste and increase recycling and reuse."

"It is our view that these solutions must profitably and seamlessly integrate with our daily lives and existing infrastructure in order to gain acceptance and bring to pass compelling environmental gains. Ovation's technology achieves this and I am personally thrilled to include this important company in our portfolio," said Kreisler.

Under the terms of its agreement with Ovation, GreenShift will purchase 200,000 shares, or about 9.39%, of Ovation's outstanding stock for $1 million and GreenShift has the option to acquire an additional 400,000 shares of Ovation common stock at $6.00 per share. Ovation recently filed to become publicly traded and expects to commence trading later this year.

About GreenShift Corporation

GreenShift Corporation is a publicly traded business development company (BDC) whose mission is to develop and support companies and technologies that facilitate the efficient use of natural resources and catalyze transformational environmental gains.

BDCs are regulated by the Investment Company Act of 1940 and are essentially publicly-traded equity funds where shareholders and financial institutions provide capital in a regulated environment for investment in a pool of long-term, small and middle-market companies through the use of senior debt, mezzanine financing, and equity funding.

GreenShift plans to use equity and debt capital to support and drive the value of its existing portfolio of companies and to make investments in a diversified mix of strategically compatible growth stage public and private businesses and technologies. GreenShift's current portfolio includes investments in the following environmentally proactive companies:

    -- Veridium Corporation (OTC Bulletin Board: VRDM - News);
    -- INSEQ Corporation (OTC Bulletin Board: INSQ - News);
    -- GreenWorks Corporation;
    -- GreenShift Industrial Design Corporation;
    -- Coriolis Energy Corporation;
    -- TDS (Telemedicine), Inc.;
    -- Ethanol Oil Recovery Systems, Inc.;
    -- Sterling Planet, Inc.; and,
    -- Ovation Products Corporation.

In addition, GreenShift hopes to add investments in wind power, hydropower, practical centralized applications of hydrogen power, alternative fuels, infrastructure and mining to its portfolio during 2005 and 2006.

Additional information regarding GreenShift Corporation is available online at http://www.greenshift.com .

Safe Harbor Statement

This press release contains statements, which may constitute "forward- looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of GreenShift Corporation and Ovation Products Corporation, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.