SpongeTech Delivery Systems Clarifies Sales Order Backlog Status and Manufacturing Capabilities

NEW YORK, Oct. 23, 2007 -- SpongeTech Delivery Systems, Inc. (BULLETIN BOARD: SPNG) announced today after receiving investor inquiries into the status of its sales and order backlog, wishes to clarify details for its shareholders.

SpongeTech Delivery System's CFO Steven Moskowitz commented, "I think there are some misconceptions running around out in the investor community regarding our ability to manufacture and ship SpongeTech products that we want to clarify and address for our shareholders. First, we currently have more than a million units of our Car Wash and Wax product in our inventory that are available to ship immediately to customers. Because of some of the dates that we publicly released regarding shipping time frames for some of our backlog, some investors got the impression that we did not have stock or could not ship until new manufacturing and production was brought online in the future. We want to correct this misconception. We have inventory and we are shipping our SpongeTech Car care products every day." Mr. Moskowitz added, "The car wash product sales cycle is seasonal. The slow season for outdoor car care products is typically winter, so when we talk about shipping sales backlog in early 2008, it is because clients are starting, at that time, to ramp up inventory for the spring selling season. Sales for SpongeTech's car care products will start ramping up in Q1, 2008 for spring sales and then high season sales for SpongeTech's car care products will then run through Q3 of 2008. So, when we talk about our $10.7 M sales backlog shipping by September 2008, what that really means is that we will begin shipping product against those orders as early as the end of 2007, and will release shipments against those orders throughout 2008. Nearly all of our current $10.7 M backlog will be shipped by September 2008."

Mr. Moskowitz continues, "We currently have contract manufacturing capabilities up and running here, in the U.S., in facilities in New Jersey. We are also working to ramp up new manufacturing and production facilities in China which will be online and producing products in early 2008, which, in addition to our US manufacturing capabilities, will enable us to keep up with growing sales demands. We are also doing things this year to keep sales momentum going through the winter season by introducing new free-standing "Point of Sale" displays for the Christmas Holiday Season. These new retail POS displays were designed and manufactured exclusively for SpongeTech here in the USA, and should help the company increase it's holiday sales given that the company won't need to fight for space on retail store shelves during the holiday season."

SpongeTech Delivery System's CFO Steven Moskowitz further stated, "We have received enough investor inquiries recently to understand that from recent company pr's and our recent 10 QSB filing, that some investors seemed to be jumping to inaccurate conclusions as it related to our sales backlog and our product fulfillment capabilities. We wanted to clear things up in this regard and reassure our shareholders that our sales and order fulfillment are not being artificially limited due to inadequate manufacturing and production capabilities. We are working hard to continue to grow our sales and open up new domestic and international distribution networks and are confident that we currently have, and will continue to have, adequate manufacturing capabilities to supply our fast growing sales and distribution network."

For more information please contact Investor Relations at 1-877- SPONGE T 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.