SpongeTech Releases 10KSB, Highlights Include 5.4M Sales Backlog and Rapidly Expanding Sales Growth

SpongeTech Reports Current Sales Backlog of $5.47M with aggressive plans to grow market share in the $7.6B Cleaning Products Market Segment

NEW YORK, Aug. 30 -- SpongeTech Delivery Systems, Inc. (BULLETIN BOARD: SPNG) released its 10KSB after the market close yesterday. The company's 10KSB reported the company had a current sales backlog of $5,472,180, which has largely been booked since early Q2 of this year. SpongeTech has recently signed distribution deals with Asian, Mexican and Latin America distributors, and is pursing other international distribution and sales opportunities. The company is also aggressively growing its domestic sales and distribution channels and ramping up its marketing activities.

Additionally, SpongeTech is pursuing sales and marketing activities to grow its direct online sales through various sales and marketing promotions, and the company recently signed an infomercial deal with Incredible Discoveries that is projected by the company to be worth an estimated $18.9M in orders for the next 18 months!

SpongeTech has been initially focused on the automotive cleaning products market segment with its Car Care Delivery Systems Products, but the company is also currently exploring distribution and marketing opportunities for their cleaning products for use as a household cleaning sponge infused with anti- bacterial bath and kitchen soaps, and they are developing a children's bath foam sponge, with a "safe mesh" coating in the shape of animals, and infused with a gentle no-tear, non-irritating anti-bacterial soap. Other future market opportunities for their unique SpongeTech Delivery System technology include medical antibacterial cleaning applications, kitchen, bath and outdoor cleaning products, and food service products.

Steven Moskowitz, of SpongeTech Delivery Systems comments, "This has been an incredible year so far for SpongeTech. At the beginning of the year we were starting our transition from a development stage company and through the first 8 months of the year have been able to build up a sales backlog of more than $5.4M. Along the way we have signed many new sales and distribution partners, successfully ramped up our sales and marketing efforts in the automotive cleaning product market segment, and have begun product development and testing of new products for other market segments. In the next twelve months, management intends to take a number of actions that it believes will enable our business to successfully participate in, and rapidly grow our market share in, the estimated $7.6B Cleaning Products Market Segment. We are committed to keeping SpongeTech investors informed on a regular basis about what is going on in the company, and we are excited with the company's prospects moving forward."

For more information please contact Investor Relations at 1-877-SPONGET or visit the company website at: www.spongetech.com.

About SpongeTech Delivery Systems

SpongeTech Delivery Systems designs, produces, markets and distributes cleaning products for vehicular use utilizing patented technology relating to sponges containing hydrophilic (liquid absorbing) foam polyurethane matrices. The Company's sponges are specially configured with an outer contact layer and an inner matrix, which is loaded with specially formulated soaps and wax that are released when the sponge is applied to a surface with minimal pressure. The Company's products are currently designed specifically for vehicular cleaning use. However, the Company is exploring the possibility of using its patented technology for the development of sponges for other uses, including for use with anti-bacterial, bath and kitchen soaps for household uses, as well as for use as a children's bath foam sponge. Each SpongeTech Delivery System sponge is fully biodegradable and is designed with their cutting-edge technology and environmentally friendly.

"Safe Harbor Statement" Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The results anticipated by any or all of these forward-looking statements may not occur. Additional risks and uncertainties are set forth in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2005, the Company's Quarterly Report on Form 10-QSB for the first quarter ended March 31, 2006. The Company undertakes no obligation to publicly release 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 or changes in the Company's plans or expectations.