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financialresultsoverview.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    April
2009 Conference Call

    Shareholder
Update and Q2 Ended March 31, 2009

    

    Marty:

    Good
morning.    Before we begin the call, I would like to make
the following statement.

    

    The
statements in this conference call that relate to future
results, markets,   growth plans or
performance are forward-looking and involve certain risks and uncertainties
associated with demand for products and services,    and
development of markets for the company's products and
services    as well as other risks identified in the
Company's SEC filings.

    

    Actual
results, events and performance may differ
materially.  Conference call participants are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of
the date of this conference call.    Ecology Coatings
undertakes no obligation to release publicly the result of any revisions to
these forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

    

    Now, I
would like to turn the call over to Ecology Coatings’ CEO, Bob
Crockett.  Good morning Bob.

    

    

    Bob

    

    Good morning and thank you for joining us on
our first shareholder conference call.  I’m Bob Crockett, CEO of
Ecology Coatings.  And, with me are Kevin Stolz, our CFO and Dan
Iannotti, our general counsel.  I want to take this opportunity to
introduce you to your new management team and provide an update of our accomplishments
over the past six months.  I wish I could tell you the names of
companies we are working with, but NDA’s prevent disclosure.  They
include large fortune
500 companies and private owners who are clearly leaders in their
industries. What’s really great is their excitement about our
technology.  When customers are pumped about your product, you
know you’re on to
something.

    

    I joined
the company just over 7 months ago, bringing over 20 years of experience in
product
commercialization.  I came to Ecology Coatings looking for a market
with large opportunities that a breakthrough in technology could improve; we
have that at Ecology Coatings.  Our general counsel, Dan Iannotti,
joined the company 8 months ago and was the general counsel for 3 other publicly traded
companies.  Dan provides ecology coatings with extensive business and legal
expertise.  Kevin Stolz joined the company as controller 2 years ago
and was recently named CFO. Both Dan and Kevin have very well rounded
business experience and wear many hats to support the team.

    

    Sally Ramsey, our founder and
VP of new product development, is a true pioneer in our industry
and Tom Krotine, our chief operating officer, has a PhD in metallurgy and materials
science, has
extensive experience and
a great reputation in
the coatings industry, with companies such as Valspar and Sherwin
Williams.  We
have a small but committed management team, one
that will drive the
success of our
company.

    

    I’d like
to take a moment and provide a brief overview of the coatings
industry.

    

    First of
all, almost every product manufactured,
from your iPhone to
decorative paint or chrome finishes, to packaging has a protective
coating.  Every
product that is
coated has to go through a curing process.  The most common coatings
are heat cured or cured by baking products in large ovens at 400 degrees
for approximately 30 minutes.

    

    And, what is really interesting is
that this huge $20
billion dollar industry hasn’t had a real technology
breakthrough in over 50
years – until
now.

    

    Several
of our potential
customers have
stated that we have the technology to completely change the coatings
industry.  A great example is powder
coatings used to coat metal substrates. These products range from consumer
to medical to automotive and electronics.  When replaced with our technology,
energy usage is cut by
more than 75 percent
because our UV coatings
don’t require heat and cure with a flash of light in a few seconds.  Manufacturing
space and time is cut by 80 percent by eliminating
ovens and assembly time because products don’t have to be disassembled for the coating
process.  This is a huge cost savings
and an added savings of our natural
resources and the
environment.

    

      In
addition to the cost savings discussed, our coatings for metal
finishing provide substantial corrosion
protection and adhere to decorative metals and flexible metals—such as aluminum, chrome, stainless steel and tubing, which are difficult to adhere
to.  We are getting great feedback from our customers.  This
morning we
announced an agreement with a leading manufacturer of
large 5 gallon metal
containers to implement our UV technology into their production line. Our
customer has dedicated an entire pilot manufacturing line so we can complete the
program as quickly as possible.  With this commitment and pending
successful completion of production testing we expect the program to be
operational within 12 months.  This agreement shows that industry leaders
are determined to implement the best most cost effective technology.  We’re
also working with a
large automotive parts supplier
on an application that
will replace chrome with
our coating for lighter
weight parts with superior hardness and scratch
resistance. Our UV coatings are playing a key role in the development of
light weight alloys that reduce weight by as much as 20%. This is tremendous as manufacturers
view a 10% savings as a significant cost reduction.  These new metals
previously were not possible when cured with high temperature
ovens.  Our goal is to replace a good
portion of the powder coatings used in metal finishing which generates about
$5 billion dollars
a year.

    

    Our
second target market is paper products - which is a $4 billion dollar
industry.  Our barrier coatings allow paper to perform in amazing ways and enables
broader use of low cost ecology friendly paper in harsh
applications.  Our coatings can produce paper with a barrier to water and oils,
fire resistant, mold inhibiting; and the ability to
provide printed papers,
such as medical labels, that are totally smudge-free and disposable friendly.  For
example, we are
currently working with a large label manufacturer to solve a moisture and adhesion problem
on a food
container.  The test
results are very
encouraging and we’re working on a R&D and licensing agreement. If you
don’t believe this is a giant opportunity, just walk
down the isles of your local grocery store ... everything you see has a
label and is the single source of brand identity in the packaging
industry!

    

    For
another large consumer
products company, we’re working on a process to minimize the ability of oxygen
to permeate through
paper. Coating of paper products provides tremendous opportunities for
Ecology Coatings.

    

    Based on
our recent work with industry leaders, we have 3 revenue streams – R&D fees for development;
Licensing fees to grant exclusivity; and on-going royalty fees for
implementation in the production process.

    

    I believe
we are ideally positioned as global economic
and competitive conditions, government and environmentalists are forcing
change.  We
can be the catalyst for that with our cost effective, environmentally friendly
coating technology that provides energy savings, reduces
manufacturing costs and provides U.S. manufacturers a
competitive edge.

    

    I’ve
discussed our two near-term target markets and
have provided a brief overview of the coatings industry and how Ecology coatings
can revolutionize   an industry that hasn’t changed in more than
50 years - and is ripe for change.

    

    PAUSE.....................................

    

    This is a
good time to have our CFO, Kevin Stolz recap our second quarter.

    

    Kevin
begins.

    Thank you
Bob.

    We have
been looking internally as to how Ecology Coatings can operate more efficiently as we work toward
commercialization.  And, we have been very effective.  For
the second quarter, we reduced our operating loss by 46 percent over last year’s
second quarter.  And, our net loss for the
quarter represented a 51
percent improvement over last year’s second quarter.  We
accomplished this through a reduction in headcount, salaries, and consultant and
professional fees.  While we’re happy with the progress we
have made, we are
reviewing other ways to reduce  our burn rate that will not affect
commercializing and protecting our products.  I’d like to hand the
call back to Bob.

    

    Bob
begins:

    Thanks Kevin.

    

    The last 18 months have been a
transitional period for
the company as we move from R&D to commercialization.  We are
excited about the
remainder of 2009, as it holds many opportunities for our
products.  We’re currently working on approximately 20 opportunities
that hold promise for customers in a variety of industries.

    

    We know our technology solves
big problems by helping
companies lower their
expenses, increase their
manufacturing processes, and lower their carbon
footprint.  And, we know our coatings can provide
a better, cleaner way of doing things by
replacing coating
technologies that produce harmful toxins into the
atmosphere, and use excessive amounts of fossil
fuel.

    

    2009 will
be a challenging year
with in the current economy, but we believe this recession will
force needed change in the coatings industry. The best way to navigate these
challenges is to stay focused on what we do best, and focus on markets that can
provide revenue in the
near-term.

    

    We
are currently working
with large companies and private owners that want
change. Our target
markets provide the
potential for industry leaders to move forward with
manufacturing capital projects that take advantage of the benefits
of our technology, with the possibility of funding incentives through the
Stimulus Bill. (American Recovery
and Reinvestment Act).  Seldom do we see
the perfect alignment of the economy, government and the environment driving
change.

    

    In many
cases our value proposition represents a capital ROI of less than 6
months

    

    I would like to add that the
entire management team
is focused on improving communications with our shareholders.  We will take a more open approach in sharing our
visions, our strategies and tactics with you.  Today’s conference call is an
important component of
our ongoing communications.  We have also launched an enhanced
website where you will see a more direct focus on what and who we are, what makes us unique, and the problems our technology can
solve.

    

    Our Value
proposition is compelling, our target market
is very large with
patents that are both broad and strong.  We are very excited about our
prospects for commercialization.

    We are
very committed to
building Ecology Coatings in ways that will make our shareholders proud and enhance shareholder
value.

    

    

    

    Pause.........................................................

    Now we’d like to open the call
up for investor questions.

    

    Operator, please go
ahead.

    ?????????????????????????????????????????????????

    

    

    

    

    

    

    AFTER
QUESTION SESSION...

    

    Bob
begins:

     Thank
you for your questions.  It is a pleasure to speak with
you.  On behalf of the entire team, we would like to thank you for
your time, interest and support of Ecology Coatings.  We look forward
to speaking with you next quarter.

    Thank
you.secondquarterresultspr.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
    

    
      

      
      

    

    

    

    

    

    Investor
and Media Relations

    McCloud
Communications, LLC

    Marty
Tullio, Managing Member 

    949.553.9748

    Marty@McCloudCommunications.com

    

    

    Ecology
Coatings Announces Second Quarter Financial Results

    and
Provides Shareholder Update

    

    Net
Loss for the Quarter Reduced by 46 Percent

    

    Auburn Hills, MI – April 28,
2009 – Ecology Coatings,
Inc. (OTCBB:ECOC), a leader in the discovery and development of
nanotechnology-enabled, ultraviolet curable advanced materials, today provided a
shareholder update and reported financial results for its second quarter, ended March 31,
2009.

    

    Highlights:

    

    
      	
              ·  

            	
              Ecology
      Coatings has just begun the commercialization of its innovative,
      ultraviolet (UV) curable industrial
coatings

            

    

    

    
      	
              ·  

            	
              Net
      loss for the quarter was reduced 51 percent, to $882,000, or a net loss
      per share of $0.03, compared to the second quarter of fiscal 2008, in
      which the company reported a net loss of $1,811,000, or a net loss per
      share of $0.06

            

    

    

    
      	
              ·  

            	
              Equity
      11, Ltd. has invested $2,347,000 in Ecology Coatings Convertible
      Preferred Stock with the option to invest up to $5
      million 

            

    

    

    
      	
              ·  

            	
              New
      management team

            

    

    

    
      	
              ·  

            	
              Two
      new board members

            

    

    

    
      	
              ·  

            	
              New
      interactive website providing focused information for both shareholders
      and customers

            

    

    

    
      	
              ·  

            	
              Company
      awarded seventh product patent, which protects the manufacturing process
      and methods for environmentally friendly coating for use on metal
      substrates, including flexible metal
objects

            

    

    

    “I look
forward today to my first shareholder conference call,” commented Ecology
Coatings CEO Bob Crockett. “I’ve been here just over seven months and am
enthusiastic about the strength of our patented technology platform, and the
decisions we have made to address the coating demands of U.S. manufacturing
companies. Today’s global economic and competitive conditions are demanding
change in an industry that has been static for over 50 years. I believe we have
the most innovative, cost effective, environmentally efficient coatings
technology in the industry.

    

    “This
claim and proof of concept is based on information gathered from the 20 customer
projects we are working on in our target markets. We intend to use our
customers’ manufacturing expertise, distribution channels, and sales and
marketing expertise to accelerate our time to commercialization.”

    -more-

    Ecology Coatings Announces Second
Quarter Financial Results and Provides Shareholder Update 

    Page
2

    

    

    Crockett
continued, “During the conference call, we will be discussing the milestones
reached over the last six months, including the decision to focus on our paper
barrier technology, which enhances the performance of paper products, a $4
billion industry; and the metal finishing powder coat industry, which generates
$5 billion annually in material sales. Companies in the metals industry are
searching for a technology platform that will allow them to lighten the weight
and cost of their products. Many companies in this industry are also positioning
themselves to take advantage of the monies being provided by the American
Recovery and Reinvestment Act to companies
that are reducing their energy usage and carbon footprint.”

    

    Crockett
will also be introducing the new management team and discussing their short- and
long-term vision for Ecology Coatings.

    

    Shareholders,
potential shareholders and members of the financial community are encouraged to
participate in today’s second quarter update conference call. The call will
begin at 11:00 a.m. Eastern Daylight Time. The conference call dial-in number
for U.S. and international callers is 480.248.5081. The passcode for the call is
4055988. Please dial in to the conference five minutes before the call is
scheduled to begin. An audio replay of the conference call will be available
from 2:00 p.m. EDT, April 28, 2009, through 11:59 p.m. EDT, May 12, 2009. The
audio replay can be accessed by dialing 303.590.3030, and entering passcode
4055988.

    

    About Ecology Coatings,
Inc.

    Ecology
Coatings, Inc. (OTCBB:ECOC), is a world leader in the development and licensing
of cleantech ultraviolet (UV) curable coatings — coatings that improve the
products we use daily. Ecology’s technology platform allows manufacturers to
enhance the durability and performance of their products, while significantly
reducing energy costs and increasing manufacturing throughput. The company
produces solid coatings which eliminate the escape of harmful solvents into the
atmosphere during application. Headquartered in Auburn Hills, Michigan, Ecology
Coatings has a development and prototype lab in Akron, Ohio. For additional
information, call 248.370.9900 or visit the company's website at http://www.ecologycoatings.com.

    

    Forward-looking
Statements

    This
press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements generally can be identified by phrases such as, Ecology Coatings (the
"Company"), by and through its management, "anticipates," "believes,"
"estimates," "expects," "forecasts," "foresees," "intends," "plans," or other
words of similar import. Similarly, statements herein that describe the
Company's business strategy, outlook, objectives, plans, intentions or goals
also are forward-looking statements. Such forward-looking statements involve
known and unknown risks, uncertainties and a wide variety of other factors which
may cause the 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. Such factors include,
but are not limited to, the Company's ability to: successfully commercialize its
technology; generate revenues and achieve profitability in an intensely
competitive industry; compete in products and prices with substantially larger
and better capitalized competitors; secure, maintain and enforce a strong
intellectual property portfolio; attract additional capital sufficient to
finance our working capital requirements, as well as any investment of plant,
property and equipment; develop a sales and marketing infrastructure; identify
and maintain relationships with third party suppliers who can consistently
provide us a reliable source of raw materials; acquire, develop, or identify for
our own use, manufacturing capacity; attract and retain talented individuals;
expand its shareholder base and public awareness of the Company through its
investor relations program; continue operations during periods of adverse
changes in general economic or market conditions, and other events, factors and
risks previously and from time to time disclosed in our filings with the
Securities and Exchange Commission, including, specifically, the "Risk Factors"
enumerated in the Company's latest Annual Report on Form 10-KSB.

    ###

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