SOURCE: Biopack Environmental Solutions Inc.

August 24, 2007 16:00 ET

Biopack Finalizes Agreement to Expand Production Capacity

HONG KONG--(Marketwire - August 24, 2007) - Biopack Environmental Solutions Inc (OTCBB: BPEV) is pleased to announce that a finalized agreement has been reached with Tayna Environmental Technology Co. Ltd. ("Tayna"). This agreement allows Biopack to increase its production capacity by an expected 320 million units per annum. Tayna (formerly known as 'Svena') will set up a production facility to exclusively produce Biopack's 100% biodegradable product. Tayna will also purchase equipment, pay consultation fees and a royalty fee for the usage right of the production technologies of Biopack's packaging products.

Biopack will provide Tayna with their technical expertise, equipment, project planning, training, raw materials and full after sales support. Biopack will also continue to be responsible for quality assurance of the brand and will be responsible for all sales of the produced product. Production is scheduled to commence in the Tayna production facility by Q4 of 2007.

This agreement is set to last two years and will allow Biopack's production facility which is already producing at full capacity to keep up with demand for their 100% biodegradable product until the new production facility "Biopark" comes online over the next two years. Biopark will consist of 4 modern factory blocks set on 6.6 acres of land in Jinagmen, China. Phase I is expected to begin operations as soon as the 4th quarter of 2007.

About Biopack

Biopack is an industry leader in the green revolution and in the manufacturing of 100% biodegradable consumer products. The Company manufactures 100% biodegradable products from locally available waste products. For more information please visit our web site at www.biopackenvironmental.com.

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Forward-looking statements: This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties of other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in the Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's most recent Annual Report on Form 10-K and other documents filed by the Company with the U.S. Securities and Exchange Commission.

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