BIOREM Technologies Inc.

BIOREM Technologies Inc.

July 04, 2005 17:00 ET

BIOREM Acquires Assets of Biocube

GUELPH, ONTARIO--(CCNMatthews - July 4, 2005) - BIOREM Inc. (TSX VENTURE:BRM) announces that on July 1, 2005 it completed the acquisition of the assets of Biocube LLC of Victor, NY through a new, wholly owned, U.S. subsidiary which will continue the operations from Victor, NY under the name BIOREM Environmental Inc.

Biocube manufactures a unique line of modular biofilters for odour control in the small to intermediate airflow range and has more than 300 systems installed worldwide. Biocube's sales in fiscal 2004 were CDN$3.0 million (US$2.4 million) and the purchase price was approximately one times annual sales, settled in cash. All seven full time Biocube employees have been offered positions at BIOREM Environmental Inc. The transaction is expected to be accretive to BIOREM fiscal 2005 earnings.

A private placement to Mr. Herbert Ego, former President and CEO of Biocube, of approximately 110,000 common shares of BIOREM Inc. at an aggregate subscription price of $346,000 ($3.15 per share) was completed in accordance with regulatory approval simultaneously with the closing of the transaction. The shares are subject to a hold period pursuant to Canadian securities laws that expires on November 7, 2005 and a hold period pursuant to US securities laws. No bonus, commission or finder's fee was paid in connection with the private placement.

"This acquisition marks another significant step in our goal of consolidating the biofilter market, bringing together biological odour control companies that are the best in their respective segments." commented Brian Herner, President and CEO of BIOREM. "Combined with new product developments and improved application technology, we are committed to providing our customers the best product selection and performance capability available."

Biocube's specialized product line includes a patented modular resin tray biofilter that is ideal for treating odours from sewage pumping stations and small sewage treatment plants. There are hundreds of thousands of these stations in North America and many have serious odour emission problems. Biocube offers the most competitive price point for the low air flow market. The size and price make it an excellent product for entry into foreign markets. Successful installations have already been completed in Saudi Arabia, Jordan, South Africa and Peru.

"In addition to Biocube's broad customer base, we benefit from the sales infrastructure and the addition of an experienced team of professionals. Mr. Ego, who will join us as a senior manager of BIOREM, will play an integral role in the management of our combined business development and the rapid expansion of our international business. This acquisition will also give BIOREM a US business base to support our strong market position there." Mr. Herner continued.

Mr. Ego, commented that "It is timely for us to come together with BIOREM, join resources and expand our position in this young and rapidly growing market. BIOREM and Biocube have many complimentary strengths in product, market application and personnel. Together we have a real opportunity to leverage these strengths and emerge as the industry leader in biological odour control systems."

BIOREM through its wholly owned subsidiary, BIOREM Technologies Inc., manufactures BIOSORBENS™ a high-efficiency permanent biofilter media and is a leading supplier of biofilters for air pollution control in municipal and industrial applications including the BASYS™ modular and BIOFILTAIR™ field erected systems. With over 100 installed systems and over a decade of experience, the Corporation's groundbreaking biofilters are the technology of choice for wastewater treatment plants and pumping stations across North America.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this release.

Forward-Looking Statements

All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of Biorem Inc. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

Contact Information

  • BIOREM Technologies Inc.
    Greg Flanagan
    Chief Financial Officer
    (519) 767-9100 x275
    BIOREM Technologies Inc.
    Tim Gallagher
    Investor Relations
    (519) 767-9100 x404