SOURCE: JER Envirotech International Corp.

December 16, 2008 09:30 ET

JER Provides Year End Summary and Business Update

VANCOUVER, BC--(Marketwire - December 16, 2008) - JER Envirotech International Corp. (TSX-V: JER) (FRANKFURT: KFTB) ("JER"). Edward Trueman, President and CEO wishes to provide shareholders with a year end summary and general business update:

As we prepare to close out calendar year 2008 and head into the New Year, I wanted to convey to you some of the milestone events and what we see going forward into 2009.

When I assumed the position of CEO two years ago, the basic premise that JER was founded upon was strong. However, we discovered that the core of the technology needed much work and refinement, both on the compound side and on the sheet side. More than anything else, we needed sales. Since no one company had done what we set out to do, there was no playbook as it were to work from. Our approach to the market segments we chose required that we seek customers and partners keen on the advent of new, green technologies, cost and above all -- performance. This innovative approach culminated in the development of a diversified sales pipeline with accounts producing toys, decking products, consumer goods, pet and animal goods and agricultural materials.

Throughout 2007 and into 2008, JER Envirotech was completely transformed. Corporate development, technology, finance, field sales, technical service, web based marketing and site development, analytical and development laboratory infrastructures were all initiated and accomplished. Essentially, these changes put the Company on a footing to execute our sales pipeline and drive top line performance and EBITDA.

During 2008, our sales started to grow. We grew triple digit levels, quarter on quarter and year on year. Let me discuss some of those key events of 2008:

* First, I am very pleased with our recent announcement concerning our receipt of the Frost and Sullivan Award for the Most Innovative Material for 2008 in the category of Bio Fiber Composites. This award recognizes JER Envirotech's commitment and successful execution of our new portfolio of high performance Bio Composite Materials, expanding and improving from the original materials that were developed with the NRC.

* I am also very pleased to announce our newest technology break through. JER has just released a series of Impact Grade Bio Composite compounds that achieve new levels of impact performance and open new horizons for bio fiber composite materials that until now were not available by any supplier of bio fiber composite materials.

* Consistent with our consolidation to growth plan, we wound down those Joint Venture business arrangements that were unwise and not sustainable. The majority of the JV Arrangements have been dissolved and we are working towards cleaning up the remainder.

* We concluded our Fiscal 2008, and 4th quarter 2008 with strong performances. In spite of the current economic conditions, 1st quarter 2009 ended November 30, 2008, was above expectations.

* We have grown our injection molding and extrusion compound business in key, exciting areas. We expect to see continued growth into 2009, with our existing customers and the addition of new customers in new markets.

* In 2008, we re-entered both Asia and Europe with our unique bio composite products. This is all new business that we see continuing to grow into 2009.

* In 2008, we launched key strategic alliances with distribution organizations, JamPlast, Inc., MCG BioComposites and Chase Polymers, all with core expertise in composite sales and marketing. We will see significant business from those efforts in 2009.

* JER Envirotech has been approved and is supplying into some specifically approved "green certification" required segments, like the US Department of Agriculture's BioCertified Program allowing JER to supply products into the US Forestry Service. These certifications have become a key benchmark for material engineers and required data bases.

* On the cost side, we have eliminated over $600,000 of non-recurring expenses since March 2008 in a proactive measure to reduce our non-essential cost base as we strive towards the breakeven goal. The core senior management team is lean and focused on delivery results.

Looking forward into 2009, we have a number of initiatives in the sales pipeline that we will deliver in the coming months and allow us to forecast the achievement of profitability. I thank you for your continued support and look forward to greater success in 2009.

About JER Envirotech International Corporation

JER is a global supplier of thermoplastic biocomposite compounds and sheeting. The Company's patented technology utilizes waste or by-product materials, such as wood fibre or rice hulls, to produce environmentally-friendly alternative products for applications in the construction, transport, automotive and toy industries. The Company currently has a range of biocomposite formulations which it developed in collaboration with the National Research Council - Industrial Materials Institute of Canada.

JER is publicly-traded on the TSX Venture Exchange (TSX) under the symbol "JER" and on the Frankfurt Stock Exchange under the symbol "KFTB." For more information, visit www.jerenvirotech.com or contact:

For more information, please visit www.jerenvirotech.com or contact:

Jer Envirotech International Corporation

Mr. Ji Yoon
Chief Financial Officer
International: +1 (604) 940-9262
jyoon@jerenvirotech.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release contains certain forward-looking statements that reflect the current views and/or expectations of JER Envirotech International Corp. with respect to its performance, business and future events. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, those relating to changes in the market, potential downturns in economic conditions, foreign exchange fluctuations, demand for thermoplastic biocomposites, competition and our ability to implement our business plans and strategies in a timely manner or at all. These risks, as well as others, could cause actual results and events to vary significantly. JER Envirotech International Corp. does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements.

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