NEW YORK--(BUSINESS WIRE) --GreenShift Corporation (OTC Bulletin Board: GERS - News) today announced its execution of a series of agreements with YA Global Investments, L.P. ("YA Global”) to reduce and restructure GreenShift’s convertible debt to YA Global.

Joint Venture

The agreements call for the creation of a joint venture entity, YA Corn Oil Systems, LLC (the "Joint Venture Company”), into which GreenShift has agreed to transfer up to five GreenShift-owned corn oil extraction facilities based on GreenShift’s patented and patent-pending technologies. In exchange, YA Global has agreed to reduce up to $11,700,000 of the convertible debt issued by GreenShift to YA Global. GreenShift will also receive a 20% equity stake in the Joint Venture Company and the right to receive 20% of the Joint Venture Company’s distributable cash upon the realization by the Joint Venture Company of a 20% internal rate of return on its invested capital.

GreenShift further agreed to provide management services to the Joint Venture Company for the ongoing operation and maintenance of the transferred extraction facilities in exchange for certain management and brokerage fees, as well as earnings-based performance bonuses to be paid in the form of up to another $6,000,000 in reduction of GreenShift’s convertible debt YA Global.

Impact of Transaction

If all of the contemplated transfers are completed, GreenShift’s convertible debt due to YA Global will be reduced from about $42 million to about $30 million. This amount can be reduced further down to about $24 million upon realization by GreenShift of the performance bonuses noted above. In addition, the maturity date for the remaining convertible debt due from GreenShift to YA Global will be extended from March 31, 2011 to December 31, 2012.

“Reducing debt will lead to increased strength and enhanced capabilities to win new business,” said Kevin Kreisler, GreenShift’s chairman and chief executive officer. “The new agreements with YA Global provide a realistic mechanism to achieve this while we continue to service the needs of our clients.”

“A key challenge and objective for us is to repay YA Global’s investment in cost-effective ways while minimizing the issuance of common stock as much as possible. YA Global provided us with most of the funds we needed to develop and commercialize our patented and patent-pending technologies, and has been and remains a strong and flexible partner for our business, and we are pleased to have the opportunity to continue to partner with them in this new transaction as we achieve our goals to create value for our clients and shareholders. We look forward to satisfying the conditions for closing of the joint venture transaction and pressing forward,” said Kreisler.

The transaction agreements have been escrowed with YA Global’s counsel and will be held in trust pending satisfaction of certain conditions and will become effective only upon release from escrow. Additional information regarding the new agreements is available in GreenShift’s Form 8K filed today, June 21, 2010.

About GreenShift Corporation

GreenShift Corporation (OTC Bulletin Board: GERS) develops and commercializes clean technologies designed to address the financial and environmental needs of its clients by decreasing raw material needs, facilitating co-product reuse, and reducing the generation of wastes and emissions.

GreenShift’s mission is to build shareholder value by using its technologies to catalyze disruptive environmental gain. GreenShift believes that the first, best and most cost-effective way to achieve this is to develop technology-driven economic incentives that motivate large populations of people and companies to make incremental environmental contributions that are collectively very significant. With adoption by most of the U.S. ethanol industry, GreenShift’s commercially-available technologies can give way to disruptive gains by enabling sustainably increased production of globally-meaningful quantities of renewable fuels for distribution through existing supply chains. GreenShift also maintains its strong commitment to continued innovation and has many additional patents pending for its Backend Fractionation™ portfolio of strategically-compatible cleantech designed to continue driving the corn ethanol industry into increased sustainability and global competitiveness.

Additional information on GreenShift and its technologies is available online at www.greenshift.com.

Safe Harbor Statement

This press release contains statements that 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 members of its 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.

Contacts

GreenShift Corporation
Phone: 212-994-5374
Fax: 646-572-6336
Email: investorrelations@greenshift.com
Web: www.greenshift.com