BioNitrogen Corp.
PINKSHEETS : BION

BioNitrogen Corp.

February 14, 2012 07:15 ET

BioNitrogen Executives Weigh in on the Topic of Future Food Production

With an ever increasing world population and over-burdened farmland, solutions for increasing food production should be at the fore-front of businesses, governments and citizens alike

MIAMI, FLORIDA--(Marketwire - Feb. 14, 2012) - BioNitrogen Corp. (BION) (PINKSHEETS:BION) is a developer of a revolutionary patent-pending technology for converting renewable and abundant biomass waste into high-nitrogen urea and urea fertilizer.

In a recent address to the Advisory Board of BioNitrogen, the Company's Executive Management Team lead by CEO, Dr. Terry Collins, outlined what will become a popular theme in the next twenty years throughout the world - food.

Dr. Collins quickly outlined the latest facts according to the International Fertilizer Association (www.ifa.org):

  • Every year we use 170 million tons of fertilizer for food, feed, fibre and fuel.
  • 48% of the world's food is produced with the use of nitrogen fertilizer.
  • Global food security and sustainable agriculture will continue to become lexicons of our vocabulary.
  • Without the use of fertilizer 2 billion more people will likely become threatened by hunger.

What is obvious to the BioNitrogen team is that the world's population will continue to increase, cities will continue to expand, and the world's population will continue to need more and more food.

However, just as Dr. Collins was outlining the need for more food production, others in the Agricultural Industry also point out the difficulties associated with food production. Reports abound that outline such sensitive issues as soil degradation, agricultural land scarcities, fertilizer transportation costs, environmental concerns, and national food security to name just a few. Still the demand for food will continue to increase as will the demand on farmers and their land to increase crop production in response. Simply put, like oil, the world needs more food, and therefore the world needs more fertilizer.

Frank J. Segredo, BioNitrogen's Chief Development Officer offers this perspective "Urea fertilizer plays a key role in sustainable food development in a time when most Countries also are demanding more environmentally friendly production methods and product. BioNitrogen was created to help bridge this gap and in many ways is the perfect solution to produce more urea, reduce environmental toxins, help farmers maintain the integrity of their soil and overall produce more quality crops - hence more food."

Dr. Mario Beruvides, BioNitrogen's CTO, also presented the interesting socio-economic model which maps the Company's focus "There has never been in our opinion a more dire time to maximize the efficiency of the world's farmland. And to meet this global food demand, we as a company must help feed more people on the same amount of land (or worse, less) which requires healthy soil and thus the need to offer the highest grade fertilizers in the world to keep crop yields high. Our model incorporates abundant and local biomass, so our urea sources are readily available. Using high-quality, urea fertilizer increases crop yields, and higher crop yields of course result in more food. BioNitrogen is a Company in the right place at the right time."

BioNitrogen was founded to produce urea which among fertilizer producers has several unique advantages (Source: International Fertilizer Association (IFA), http://www.fertilizer.org):

  • Urea has the highest nitrogen content (46%) of all solid nitrogenous fertilizers in common use.
  • Urea is the major fertilizer traded internationally. In the dry fertilizer category, urea has captured more than 65% of world trade.
  • Urea accounts for 57.4% of worldwide nitrogen fertilizer consumption.
  • Worldwide Urea Production (2010): 149.610 Million Tons
  • North America Urea Production (2010): 9,834 Million Tons
  • Urea manufacturing releases few pollutants into the environment.

Michael McCarthy, Chief Financial Officer correctly emphasizes, "The world's population will always need more food no matter the economic conditions of most of the global economies or countries. Our Company produces urea using abundant biomass which the world has plenty of. Our production plants will utilize proprietary processes that do not pollute and actually serve humanity via this biomass removal. More urea equates to improved crop and soil conditions at lower costs which equates to more food with stronger margins for farmers. In our view, BioNitrogen's proprietary production facilities will quickly become the gold standard for exceeding environmental compliance. From a company valuation and investment perspective, BioNitrogen's strategic market positioning is very strong indeed."

Finally, Mr. Segredo concludes "Based on the facts above, there still remains one important constant for examining BioNitrogen's efficacy in the market. BioNitrogen will impact literally billions of people every day for the next 50 years. Just based on this prime value multiplier, BioNitrogen is a Company most of the world can easily get excited about."

About BioNitrogen Corp.

BioNitrogen is an American company focused on building fully operational, turnkey manufacturing facilities in the global marketplace to produce urea. Urea is a white, crystalline solid containing 46% nitrogen and is principally used in the agricultural industry as a crop fertilizer. In the age of expanded world population, a rapidly increased need for food production, and global environmental degradation, BioNitrogen is a Company at the right place and time. The Company's innovative, patent-pending technologies transform 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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