SOURCE: Biopack Environmental Solutions Inc.

June 11, 2008 12:10 ET

Biopack Board of Directors Authorizes 1 for 10 Reverse Split

HONG KONG--(Marketwire - June 11, 2008) - Biopack Environmental Solutions Inc. (OTCBB: BPAC) today announced that its Board of Directors has approved a consolidation of its shares of common stock at a ratio of 1 for 10. The split will be effective when the market opens on June 11, 2008. After giving effect to the share consolidation, the number of shares of Biopack common stock that Biopack is authorized to issue will decrease from 500,000,000 to 50,000,000 and the number of shares of Biopack's common stock that are issued and outstanding will decrease from 162,820,000 to approximately 16,280,000. Preferred shares and convertible securities previously issued by Biopack have not been consolidated.

"The reverse stock split will adjust our company's capitalization structure to a more appropriate level and should enable us to attract new investors. I am convinced that this decision, combined with continued strong execution by our management team, should result in increased shareholder value," says Gerald Lau, CEO.

The change in the company's share structure has coincided with the recent restructuring of Biopack's Board of Directors, management and operations effected in an effort to cut costs and increase operating efficiencies. At the same time, Biopack's Biopark facility has transitioned from limited production of product samples to full scale commercial production of customer orders.

Biopark is now operating 22 hours a day and showing steady improvement in production capacity, having ramped up from approximately 20,000 units per day at the beginning of May to in excess of 120,000 units by the beginning of June. Per diem production is expected to continue to increase as the company continues to add capacity over the coming months in its continuing effort to meet the world's demand for biodegradable, fully compostable food packaging products.

"We're very pleased with the progress of our transition from a development stage company focused primarily on building a factory and refining technology to a manufacturing stage company focused primarily on meeting our customers' demands for fully compostable, bio-degradable food packaging products. Recent visits with our largest customers show that they share our opinion that the market for our products can absorb more than we can currently produce at our Biopark facility. This is an exciting time for us and we look forward to taking full advantage of this global demand for our products," says Eddie Chou, Chief Technical Officer.

About Biopack

Biopack manufactures 100% biodegradable consumer products from agricultural waste by products. For more information please visit our web site at

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Forward-looking statements: All statements other than statements of historical fact that are included in this press release and that mention activities, events or developments that we believe may occur in the future are forward looking statements. The use of words such as "anticipate," "continue," "estimate," "expect," "may," "project," "should," "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the Company's actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements in this press release include the Company's belief that the reverse split should enable the Company to attract new investors and result in increased shareholder value, that per diem production at the Biopark facility will continue to increase over the coming months and that the market can absorb more product that the Biopark facility is currently capable of producing. Risks that might cause actual results to differ from these projections include, but are not limited to, those discussed in the Company's most recent Annual Report on Form 10-KSB and other documents filed by the Company with the U.S. Securities and Exchange Commission.

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