SOURCE: Industrial Biotechnology Corp

November 13, 2006 13:18 ET

Industrial Biotechnology Corporation Signs Manufacturing Distribution Letter of Intent and Cooperation Agreement With Tianjin Zhongao Group

SARASOTA, FL -- (MARKET WIRE) -- November 13, 2006 -- Industrial Biotechnology Corporation (PINKSHEETS: IBTY) (IBC), a company dedicated to new biotechnologies and innovations in the chemical industry, today announced it has signed a manufacturing distribution and cooperation letter of intent with Tianjin Zhongao Group, a leading Chinese PRC private owned holding company, for exclusive manufacturing and distribution of up to 600,000 metric tons of ethanol annually. The ethanol produced will be from bio-renewable resources and converted into ethanol derivatives and chemical feed stocks utilizing IBC proprietary technologies and intellectually property.

Tianjin Zhongao Group is a Chinese industrial leader and holding company headquartered in Tianjin, China. The Zhongao Group has more than 20 subsidiary companies in the fields of real estate, husbandry, biotech, pharmaceutical, veterinary pharmaceutical, energy, hotel, food, and hospitals. Its energy subsidiary, Luyuan Ecology Energy Co., Ltd. currently manufactures and distributes more than 50,000 metric tons of ethanol and has an additional 300,000 metric tons of capacity under construction.

IBC's alliance with Zhongao enables IBC to continue discussions with chemical industry partners and major end-users of ethanol and related chemical feedstocks implementing IBC technologies.

The initial term of the proposed agreement is for 5 years, with two five-year renewal terms contemplated. The terms of the distribution rights assure the lowest commercially available price Zhongao offers and will include exclusivity for IBC chemical industry partners.

"Zhongao is pleased to extend our partnership agreement with IBC from the previous flavor/fragrance sector to ethanol. Zhongao is committed to IBC for a stable and cost economic supply of bio-ethanol to IBC knowing that IBC provides an integrated package of advanced bio technologies and cost effective manufacturing expertise to the chemical industry. Zhongao strongly believes the partnership between the two firms will enable us to jointly deliver full services to the chemical industry with our biologically made chemical compounds at very competitive costs," said Chairman Hsu of the Tianjin Zhongao Group.

Andy Badolato, CEO of IBC, stated, "Our biotechnologies and chemical industry partnering strategy are a perfect fit for the utilization of low cost ethanol to convert into the various ethanol feedstock derivatives. The inconvenient truth is that these derivatives are principally obtained now from petrochemicals that are diminishing and have an environmentally damaging impact leading to global warming and other harm. Our processes utilize natural renewable resources and materials to produce these chemicals resulting in a tremendously less environmental impact.

"Zhongao is an excellent partner that has the capacity, experience, and expertise to provide our customers with the quantities and delivery schedules needed. We are currently in discussions with various chemical industry partners and are working on finalizing agreements within the next 90 days."

Mark Truei, VP of manufacturing and production at IBC, declared, "We are very pleased to work with Zhongao. As a major Chinese company, they possess the required low costs, production expertise, and facilities. This is an ideal fit with our intellectual property to meet the needs of our prospective customers to produce low cost high volume biorenewable feedstock chemicals."

About Tienjin ZhongAo Group

Tianjin Zhongao Group is a Chinese industrial leader and holding company headquartered in Tianjin, China. The Zhongao Group has more than 20 subsidiary companies in the fields of real estate, husbandry, biotech, pharmaceutical, veterinary pharmaceutical, energy, hotel, food, and hospitals. Its energy subsidiary, Luyuan Ecology Energy Co., Ltd. currently manufactures and distributes more than 50,000 metric tons of ethanol and has an additional 300,000 metric tons of capacity under construction.

About Industrial Biotechnology Corporation

Industrial Biotechnology Corporation (IBC) enables the biological production of chemicals through a combination of licensed patents, intellectual property and proprietary systems. We accomplish this through our ALCHEMx Productions Platforms™ which are a systematic, streamlined approach to biologically manufacture chemicals more efficiently, at significantly lower costs, and with substantially lower environmental impact than traditional methods. IBC and its partners plan to produce and market new and established biologically produced chemicals to the pharmaceutical, bio-energy, agricultural, biopesticides, fine chemicals, flavors and fragrances, cosmeceuticals, biomaterials and biopolymer industries. For more information about Industrial Biotechnology Corporation, please visit its website at www.industrialbiotechnology.com.

Forward-Looking Statements

Certain matters discussed in this press release are "forward-looking statements." These forward-looking statements can generally be identified as such because the context of the statement will include words such as "expects," "should," "believes," "anticipates" or words of similar import. Similarly, statements that describe Industrial Biotechnology Corporation's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, including the financial performance of Industrial Biotechnology Corporation, as appropriate, which could cause actual results to differ materially from those currently anticipated. Although Industrial Biotechnology Corporation believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, they cannot give any assurance that their expectations will be attained. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating any forward-looking statements. Certain factors could cause results and conditions to differ materially from those projected in these forward-looking statements, and some of these factors are discussed below. These factors are not exhaustive. New factors, risks and uncertainties may emerge from time to time that may affect the forward-looking statements made herein. These forward-looking statements are only made as of the date of this press release and Industrial Biotechnology Corporation does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Contact Information

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    Industrial Biotechnology Corporation
    2033 Main Street
    Sarasota, FL 34237
    941-925-2500
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