BIOREM Technologies Inc.
TSX VENTURE : BRM

BIOREM Technologies Inc.

August 12, 2005 08:30 ET

BIOREM Reports Record Bookings of CDN $5.5 Million in Second Quarter

GUELPH, ONTARIO--(CCNMatthews - Aug. 12, 2005) -

NOT FOR U.S. DISTRIBUTION

Biorem Inc. (TSX VENTURE:BRM) announced today its results for the second quarter and the six month year to date period ended June 30, 2005, which are summarized in the following table:



---------------------------------------------
Information in table Quarter Quarter Year Year
is in thousands Ended Ended to Date to Date
except per June 30, June 30, June 30, June 30,
share data 2005 2004 2005 2004
-------------------------------------------------------------------
REVENUE $2,530 $2,823 $4,205 $5,018
-------------------------------------------------------------------
NET EARNINGS $149 $215 $240 $263
-------------------------------------------------------------------
BASIC EARNINGS
PER SHARE 0.02 0.18 0.03 0.22
-------------------------------------------------------------------
DILUTED EARNINGS
PER SHARE 0.02 0.04 0.03 0.05
-------------------------------------------------------------------
WEIGHTED AVERAGE
COMMON SHARES 10,143 1,202 9,225 1,202
-------------------------------------------------------------------


The overall trend of business growth is best measured by bookings and order backlog. New orders valued at $5,520,000 were received in the quarter. This is the second consecutive quarter of record bookings, resulting in an order backlog of $10,600,000 at the end of the period and sustains the growth rate in excess of 30% per year. The backlog has increased by $4,780,000 or 71% over prior year.

In 2004, revenues in the first half were higher than the second half due to a single, large industrial contract in the rendering industry. This impacts comparative revenue figures for the first half of the fiscal year. As a result of the record bookings in the past two consecutive quarters, revenues in the second half of 2005 are expected to exceed the prior year. Completion of projects and revenue recognition is dependent on the rate at which the customers require delivery to meet their project schedules and can vary considerably from period to period.

Following the business objectives laid out in the Information Circular in January of this year, an agreement was finalized on July 1, 2005 to purchase the business and assets of Biocube LLC, Victor, NY through a new wholly owned US subsidiary, 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 sales during the calendar year ended 2004 were $3,000,000. The cash purchase price was approximately one times annual sales. As well on July 1, 2005 a private placement of 109,804 common shares was completed at an aggregate subscription price of $345,883 ($3.15 per share). This placement is to the former President and CEO of Biocube who has joined the senior management team as a Vice President of BIOREM and will play an integral role in the management of business development and the rapid expansion of the international business.

The Company also announced today that it has granted options to purchase a total of 10,000 common shares to senior management in accordance with its stock option plan. The options were granted at an exercise price of $3.00 per share and have an expiry date of five years ending August 10, 2010.

Progress continues in the industrial business unit with the successful startup and performance in the treatment of paint manufacturing emissions, using the proprietary SYNERGY™ system. Identified opportunities in the industrial application areas have increased from approximately $20 million to $55 million over the last six months.

Commenting on the first quarter results Brian Herner, President & CEO said. "I remain optimistic that we will sustain a 30% growth target in new bookings on a calendar year basis, as the extra sales resources that we committed last year are beginning to produce results. The increased value of orders, the scope of applications and the recent acquisition demonstrate the vibrancy of the market and our capability to exploit it," said Herner.

There is an increasing demand for biofilters for the reduction of air pollution. The composite board industry, of which there are 450 plants in North America, is under new EPA (Environmental Protection Agency) regulations in the US and there is increased pressure from Canadian environmental regulatory authorities to reduce formaldehyde emissions. Biofilters have been deemed an accepted technology by the EPA and there is significant interest by industry to substitute biofilters for commonly used thermal oxidizers.

The company continues to pursue developments in the international market. Major municipal infrastructure development programs in the Middle East and China require odour control management in sewage collection and treatment systems. "We are carefully assessing strategic alternatives and are on target to advance our international initiatives this year." said Herner.

BIOREM® manufactures a BIOSORBENS™ biofilter media and is a leading supplier of biofilters for air pollution control in municipal and industrial applications including the BASYS™ modular and BIOFILTER™ field erected systems. With over 400 installed systems and over a decade of experience, the Corporation's groundbreaking biofilters are the technology of choice for wastewater treatment plants across North America. www.biorem.biz.

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

This press release contains forward-looking statements based on current expectations. These forward-looking statements contain various risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Risks and uncertainties about the Company's business are more fully discussed in the disclosure materials, financial statements and MD&A filed with the securities regulatory authorities in Canada on www.sedar.com.



The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • BIOREM Technologies Inc.
    Greg Flanagan
    Chief Financial Officer
    (519) 767-9100 x275
    or
    BIOREM Technologies Inc.
    Tim Gallagher
    Investor Relations
    (519) 767-9100 x275
    ir@biorem.biz
    www.biorem.biz