Ovation Products Corporation, which has invested over $9 million in its water purification technology, a technology that is said to decontaminate water at a price of $0.004 per gallon, has entered into an agreement with GreenShift Corporation (OTC:GSHF) (BULLETIN BOARD: GSHF) whereby GreenShift will purchase 200,000 shares of Ovation's outstanding stock for approximately $1 million. Also as part of the agreement GreenShift has the option to acquire an additional 400,000 shares of Ovation common stock at $6.00 per share. Ovation is expected to commence trading later this year.

Ovation’s Clean Water Appliance, a fire hydrant sized appliance, is said to be able to produce 25 gallons of pure water per hour for contaminated and polluted water. The device is based on a process called vapor compression distillation. This process, which Ovation has obtained 11 patents on, is expected to be available on the fourth quarter of 2005, at a price that the company indicates will be a fraction of the price of other commercial distillation systems.

Bill Zebuhr, Ovation's chief technology officer, and the inventor, explained the difference it Ovation’s technology and the 100 fold cost savings, "Most distillation methods lose a lot of energy in the form of heat. 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." Accordingly, it was indicated in the announcement that Ovation’s technology had reduced the energy loss in the distillation process by over 98 percent can distill water for about 1.2 percent of the cost of traditional methods. Furthermore, unlike other water purification methods, it was reported that Ovation’s method does not require a filter or cartridge, thus eliminating the need to change or purchase filters or cartridges.

The semiconductor industry, was pointed to as a potential market. According to the announcement, the semiconductor industry requires 2,800 to 3,200 gallons of water to produce just one eight inch wafer. A typical wafer fabrication facility produces 10,000 to 30,000 eight inch wafers per month and a number are transitioning to 12 inch wafers manufacturing.

Not only is clean water important for water intensive industries such as the semiconductor industry, but it is also important for the general health of the world population. The announcement indicated that several million people die every year from water based pollutants. Furthermore, although not specifically noted, bacteria spread through the water supply are also responsible for the spread of disease and even death. The announcement also noted that the World Health Organization estimates that 3.5 billion people in the world are without potable water, which results in problems, which according to the World Health Organization will cost $11.3 billion a year by 2015.

Ovation’s technology has also been developed for the residential market, although it was indicated that the company won’t directly sell stand-alone products or a stand-alone appliance to the public, but will instead integrate the technology into appliances from other Original Equipment Manufacturers as requested by corporate customers.  According to Bob MacDonald, Ovation's chief executive officer, "We have successfully developed our technology to the point where it is cost-effective at the residential scale. We believe that this is a tremendous achievement that can have profound implications on how we use our water resources today."

Kevin Kreisler, CEO at GreenShift, with the announcement noted the alignment of Ovation with its company, "The philosophy underlying Ovation's technology is perfectly aligned with GreenShift's focus today. 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."

GreenShift reports that it hopes to add renewable energy and mining interest to its portfolio in 2005 and 2006. The company currently has investments in what it calls following environmentally proactive companies. These include Veridium Corporation (OTC:VRDM)(BULLETIN BOARD: VRDM), INSEQ Corporation (OTC:INSQ) (BULLETIN BOARD: INSQ), GreenWorks Corporation, GreenShift Industrial Design Corporation, Coriolis Energy Corporation, TDS (Telemedicine), Inc., Ethanol Oil Recovery Systems, Inc.; Sterling Planet, Inc. and Ovation Products Corporation.