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COMPANY PRESS RELEASE
SOURCE: EARTHSHELL CORPORATION


    EARTHSHELL CORPORATION ANNOUNCES COMPLETION OF DESIGN PHASE
               FOR OWINGS MILLS PRODUCTION SITE

SANTA BARBARA, CALIF., JULY 9 /PRNewswire/ -- EarthShell Corporation 
(Nasdaq:ERTH - NEWS; Nasdaq: ERTH - NEWS) announced today the completion of 
the Design Phase of its project to build three production lines for 
Sweetheart Cup Company to manufacture EarthShell hinged lid sandwich 
containers for McDonald's Big Mac-TM- sandwiches. The Design Phase of the 
project, which began last November, was completed slightly ahead of schedule. 
Management remains confident in the Company's ability to stay on schedule for 
timely installation and startup of the production lines to allow Sweetheart 
to meet its target to begin shipping EarthShell Big Mac containers to 
McDonald's restaurants on a nationwide scale in early 1999.

"The engineering and design of this first commercial EarthShell 
manufacturing facility culminates more than five years of intensive research, 
engineering and manufacturing development," said Bill Spengler, Senior Vice 
President of Corporate Planning and Business Development. "The engineering 
specifications for EarthShell's inaugural production facility are now 
complete, production line components have been ordered, and some of the 
manufacturing equipment is already being delivered to Sweetheart's Owings 
Mills, Maryland plant site, where facility improvements have been underway 
since May."

Sweetheart Cup Company is the first licensee to commercialize the EarthShell 
composite material technology and has a supply agreement to produce Big Mac 
sandwich containers for McDonald's Big Mac sandwiches nationwide. EarthShell 
expects the first of the three Sweetheart production lines to be completed 
and in operation by the end of the year, with full production capacity 
on-line by the end of the first quarter of 1999.


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"EarthShell is working closely with Sweetheart to integrate EarthShell 
products into their established marketing, manufacturing and distribution 
operations," said Mr. Spengler. "We are very pleased with the tremendous 
level of interest we have received from around the world in EarthShell 
products. We are continuing to explore with other licensees, converters and 
end users a wide array of food service applications for EarthShell."

EarthShell is a development stage company engaged in the licensing and 
commercialization of a proprietary composite material for the manufacture of 
disposable packaging for the food service industry, such as cups, plates, 
bowls and hinged lid containers. The new EarthShell composite material is 
made from commonly available raw materials including limestone, starch, 
natural fibers and functional coatings and has superior functional as well as 
environmental characteristics when compared to traditional raw materials used 
for food service packaging, such as bleached paperboard or polystyrene.

THIS PRESS RELEASE MAY CONTAIN "FORWARD-LOOKING STATEMENTS" WITHIN THE 
MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH 
FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES OR 
OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF 
THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE 
OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. 
FACTORS THAT MIGHT CAUSE SUCH A DIFFERENCE INCLUDE, BUT ARE NOT LIMITED TO, 
THOSE DISCUSSED IN THE MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 
CONDITION AND RESULTS OF OPERATIONS IN THE COMPANY'S PROSPECTUS AND OTHER 
DOCUMENTS FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION.