Envirokare Spin-off Transaction Notice

Envirokare Tech, Inc. (ENVK) recently conducted a spin-off of its wholly-owned subsidiary, Envirokare Composite Corp. (ECC, a private company). The spin-off included a share distribution of ECC common stock to Envirokare Tech, Inc. shareholders of record on January 25, 2010. The distribution was conducted on a 1:1 basis meaning that for each share of ENVK common stock owned as of the record date, one share of ECC stock was issued to that shareholder. The stock distribution was conducted on a tax-free basis, and the value of the stock distributed was calculated at $.02 per share (rounded). ECC recommends that ECC shareholders consult their respective tax advisors for advice on applicable tax treatment of this ECC stock distribution.

ENVIROKARE COMPOSITE CORP. CHAIRMAN'S LETTER TO THE SHAREHOLDERS

Las Vegas, Nevada – March 29, 2010 - ENVIROKARE COMPOSITE CORP. (a private company; www.envirokare.com) 
 
Dear Shareholders and Friends of Envirokare Composite Corp.:   

We are pleased to announce that Envirokare Composite Corp. (“ECC”, or the “Company”) has established a Board of Directors consisting of Dr. Nicholas Pappas (Chairman), Steve Pappas and Dr. John Verbicky as directors.  Dr. Nicholas Pappas and Steve Pappas are not related.   

ECC shareholders received one share of ECC common stock for each share of Envirokare Tech, Inc. common stock that they held as of January 29, 2010 (the “Spin-off Record Date”) so that the ECC shareholders have a twenty percent (20%) equity interest in LRM Industries International, Inc. (“LRM”).  LRM now has ownership of the advanced molding technology, including the TPF Thermoplastic Flowforming™ and Sheetless Thermoforming™ technologies, as well as having responsibilities for commercialization of the technology.  The future success of ECC, therefore, will be totally dependent on the success of LRM.

Our ECC Board will be dedicated to keeping ECC shareholders as current as possible with the activities and commercial progress of LRM.  To that end, Dr. Nicholas Pappas will be an observer on the LRM Board. 

On March 12, 2010, Envirokare Tech, Inc. (PINKSHEETS: ENVK; www.xemexgroup.com) announced via the Marketwire that it had acquired Xemex Holdings Corp., a commercial real estate management and development company headquartered in Brooklyn, New York.  Mr. Steve Pappas is the President of Envirokare Tech, Inc., and we wish him and Envirokare Tech, Inc. great success with their new venture. 

In our current update with LRM, we are pleased with the progress being made in commercializing the unique molding technology, in protecting the technology and enlarging its scope with additional patents and in adding significant productive capacity.  Commercialization includes ongoing sales and significant development of new applications.

In the future we will update shareholders through our web site (www.envirokare.com).  If you do not have web site access, please notify the Company and we will mail a copy of the latest shareholder update to you.  Within the next two months we will issue a more detailed update on LRM’s progress. After that update, we plan to keep our ECC shareholders informed on a 3-4 times per year basis.  As new highly significant matters occur in LRM’s business, we will report on these activities in a timely manner.

We are encouraged by the progress at LRM, yet we recognize that the true challenge of success rests on the ability to convert your investments into bottom line success.  We remain committed to that end.  We thank you for your continued support and interest in Envirokare Composite Corp. 

Sincerely, 
Dr. Nicholas Pappas

Envirokare Composite Corp.,
Chairman of the Board of Directors