Sacramento, California, USA 01 February 2010 – ECO2 Forests Inc. (US Stock Symbol: ECOF), announced today that it has entered into an agreement to acquire controlling interest in certain projects of Forest Guard Inc. a privately held company specializing in for-profit avoided deforestation projects.

Following the acquisition, ECO2 intends to realize revenue from the sale of carbon credits generated by the development stage and future projects of Forest Guard Inc in Mexico and Brazil and from other targeted projects that the company is now reviewing.

Avoided deforestation is the formation of reservations to protect existing old growth forests from being cleared. As a result, revenue is created from the sale of the carbon credits generated from the forest absorbing carbon dioxide as it continues to grow and prevents the release of carbon dioxide into the atmosphere.

The aim of avoided deforestation is biodiversity and to protect existing forests, thereby reducing carbon emissions, at the same time stimulating local economies and providing an income by means other than clearing the forest.

Collie Christensen, ECO2 Forests CEO, stated, “Acquiring Forest Guard is a significant and decisive transaction in the growth of ECO2. We expect it will further strengthen our position in the highly lucrative carbon trading market as well as provide traction within the REDD (Reduce Emissions from Deforestation and Degradation) scheme agreed to in Copenhagen 2009.”

Forest Guard currently offers tropical rainforest investment origination, land acquisition, land use rights, project development, ongoing property management, and verification and trading of carbon credits. The expansion is a strategic move for ECO2 Forests, allowing the company to combine established reforestation and afforestation projects with avoided deforestation projects worldwide.

“The addition of Forest Guard to our strategic plan allows us to develop additional carbon markets that will help channel our financial position towards cost-effective ways of reducing greenhouse gas emissions. ECO2 Forests intends to continue to expand its portfolio of environmentally focused forest projects,” said Christensen.

Andre Mech, director of Forest Guard Inc noted, “We are delighted to be on board and bring additional resources to the ECO2 team. We believe that rainforests left in place are extremely valuable and important to mankind. Our commitment is to the reduction of greenhouse gas emissions that result from the deforestation of standing forests. Under the ECO2 banner, we plan to seek out tropical rainforests that are under land use pressure and rich in biodiversity to add to our portfolio and develop additional carbon markets for ECO2.”