BioNitrogen Corp.
PINKSHEETS : BION

BioNitrogen Corp.

February 02, 2012 10:40 ET

BioNitrogen Corp. (BION) Announces Letter of Intent With United Suppliers for Urea Purchase

The LOI Outlines the Purchase of Up to 300,000 Short Tons of Urea Annually

MIAMI, FLORIDA--(Marketwire - Feb. 2, 2012) - BioNitrogen Corp. (BION) (PINKSHEETS:BION), developer of a revolutionary patent-pending technology for converting renewable biomass waste into high-nitrogen urea, is pleased to announce it has entered a letter of intent with United Suppliers Inc. for the purchase of up to 300,000 short tons of urea annually.

The letter specifies the intent by United Suppliers to purchase up to 300,000 short tons (S/T) annually of urea in granular or prilled grade form. The binding agreement to be entered into will be for an initial term of three (3) years.

"As agricultural retailers who do business throughout the United States we are challenged to keep up with the dramatic changes that are happening in the agriculture industry." states Mr. Matt Carstens, United Suppliers, Vice President of Crop Nutrients, "We are committed to creating long-term relationships with both our agricultural retail dealer owners and our suppliers. We are constantly developing innovative products, programs and services and see a close and longstanding relationship with Dr. Collins and his team at BioNitrogen."

The Final Agreement is expected to close in the coming months and will detail, amongst other mutually agreed upon particulars, product specifications, method of delivery, pricing, and payment.

The projected start date is currently set as 3rd to 4th quarter 2013, and will be defined in the final Agreement. Further, it is understood that there will be no penalties for any delays in start-up, and both parties further agree that the number of plants constructed, and timing of such plants, may determine the initial ramp up period.

"United Suppliers is a modern leader in the plant and agricultural industry." stated Dr. Terry Collins, BioNitrogen's CEO and President, "This strategic partnership between our two companies will reward United Supplier's owners and operators, as well as our company and its shareholders. Our teams are ready to work diligently to complete and document the final agreement."

About United Suppliers, Inc.

United Suppliers is a wholesale organization based in the rural community of Eldora, Iowa. The company is owned by agricultural retailers who do business throughout the United States, and provides owners a reliable, convenient and timely supply of plant protection and plant nutrient products as well as customized business solutions. United Suppliers is committed to the mutual benefits of long-term relationships with agricultural retail dealers. This commitment to the retail dealer is the driving force behind all management decisions. The board of directors, which is made up of owners/managers of agricultural retail dealerships, helps us maintain our focus. United Suppliers was established in 1963 by 30 Iowa retailers joining forces to manufacture feed and has since grown to over 800 owners in 20 states, with more than 300 employees and sales in excess of $2 billion. For more information please visit www.UnitedSuppliers.com.

About BioNitrogen Corp.

BioNitrogen Corp. (BION) is an American company focused on building fully operational, turnkey manufacturing facilities in the global marketplace to produce urea. Urea is white, crystalline solid containing 46% nitrogen principally used in the agricultural industry as crop fertilizer necessary to meet the demands of population growth and the associated need for larger food volumes. The Company's innovative, patent-pending technologies transform abundant residual agricultural waste and other biomass materials into high-quality bulk urea for sale to agricultural wholesalers and retailers. Modular in design and substantially smaller than traditional urea production plants, our facilities are capable of manufacturing 15 tons of urea fertilizer per hour for a total annual production of approximately 124,200 tons per plant. BioNitrogen is headquartered in Miami, Florida, USA and trades on the over-the-counter bulletin board under the stock symbol BION. Additional information can be found on BioNitrogen's website at www.BioNitrogen.com.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 - This press release contains forward-looking statements, including without limitation statements about the operations and future prospects for BioNitrogen Corp. (the "Company"). Forward-looking statements in this press release should not be viewed as pledges or undertakings regarding future performance. These forward-looking statements are subject to risks and uncertainties that could cause the Company's actual results to vary materially from those anticipated. The Company cautions the reader not to place too much reliance upon any such forward-looking statements, because such statements reflect the opinions and beliefs of the Company only as of the date when they were made. Factors that may cause actual results to differ materially from the forward-looking statements contained in this release include, among others, the following: (i) the Company's future operational, financial or marketing performance; (ii) the ability of the Company to bring new products to market that are complementary to the products that the Company currently produces; (iii) the ability of the Company to increase or maintain profit margins on the products it offers to the marketplace; (iv) the strength of the Company's product development pipeline; (v) the Company's growth and profitability prospects; (vi) the estimated size and growth prospects of the natural fertilizer market; (vii) the Company's competitive position in the natural fertilizer market and its ability to take advantage of future opportunities in this market; (viii) the benefits of the Company's products to be realized by customers; and (ix) the receptiveness of the agricultural and commercial market for bulk urea or other products that the Company manufactures. Forward-looking statements are based on management's beliefs and opinions at the time the statements are made. The Company does not have any obligation to update forward-looking statements should circumstances change or should management's beliefs or opinions change.

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