Company enjoying strong product awareness momentum and investor approval following $15 million sales surge in May

SpongeTech Delivery Systems Inc. (OTCBB: SPNG) announced early Friday morning its receipt of an initial order from wholesale giant Costco. The Costco order for the company’s car care products represents a milestone in its efforts to achieve widespread customer acceptance, as any order made by Costco’s purchasing department passes an important litmus test of professional approval at the mass merchandising level of Costco.

“We look forward to our new relationship with retail giant, Costco,” Steven Moskowitz, chief operating officer of SpongeTech Delivery Systems stated in the press release. “Costco has the geographic coverage, floor traffic and the demographics that are important in delivering our product to the marketplace on a national level. Our business continues to expand rapidly with reorders as well as new purchase orders and SpongeTech’s products will now be more available to the public.”

The Costco order comes on the heels of another important development in the company’s strategy for brand awareness when it announced 14 strategic partnerships in Major League Baseball (MLB) with the Arizona Diamondbacks, Atlanta Braves, Baltimore Orioles, Boston Red Sox, Cincinnati Reds, Cleveland Indians, Chicago Cubs, Colorado Rockies, Houston Astros, Florida Marlins, Los Angeles Angels, Philadelphia Phillies, San Francisco Giants, and the Toronto Blue Jays.

The partnerships serve as a high profile marketing tactic for the company’s care car products, densely targeting its optimum buyer. High-profile permanent outfield signs and home plate rotational signage are included in the partnership agreement with the teams.

In addition, SpongeTech will have outfield wall signage at the MLB All-Star Game and Home Run Derby in St. Louis in 2009, Anaheim in 2010, and Arizona in 2011.

“These deals will enhance our brand and drive recognition among retailers and consumers,” said Moskowitz. “As our business continues to show unprecedented growth, these programs will continue to establish SpongeTech® as a category leader.”

Additional products such as SpongeTech’s new children’s bath sponge will be introduced soon, the company said, and should continue the exponential growth the company plans for branding itself as America’s Cleaning Company™.

SpongeTech designs, produces, markets and distributes cleaning products for vehicular use utilizing technology relating to sponges containing hydrophilic, which are liquid absorbing, foam polyurethane matrices.

The company’s products can be pre-loaded with detergents and waxes, which are absorbed in the core of the sponge then gradually released during use.

The company licenses the rights to manufacture and sell its products from H.H. Brown Shoe Technologies, Inc. (doing business as Dicon Technologies), the holder of the relevant patents relating to the hydrophilic sponges.

The company has designed and Dicon Technologies is conducting research and development for products using the same hydrophilic technology for bath and home use.

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