BioNitrogen Corp.
PINKSHEETS : BION

BioNitrogen Corp.

March 14, 2012 11:54 ET

United Suppliers Signs Final Manufacturing and Supply Agreement with BioNitrogen Corp. (BION)

The Agreement Outlines the Purchase of a Minimum of 1,250,000 Tons of Nitrogen-Based Fertilizer Over 10 Years

MIAMI, FLORIDA--(Marketwire - March 14, 2012) - BioNitrogen Corp. (PINKSHEETS:BION), developer of a revolutionary patent-pending technology for converting renewable biomass waste into high-nitrogen urea, is pleased to announce it has finalized the purchase contract with United Suppliers, as previously announced on February 2, 2012.

BioNitrogen is in the business of manufacturing nitrogen-based fertilizer products (the "Product") and anticipates constructing one or more manufacturing facilities in the West Texas region. United Suppliers is in the business of sales, marketing and distribution of chemical and other agricultural products in the agricultural and industrial markets.

The general terms of the manufacturing and supply agreement whereby BioNitrogen shall supply United Suppliers a minimum of 1,250,000 tons of nitrogen-based fertilizer over 10 years are as follows.

BioNitrogen shall use commercially reasonable efforts to construct up to three (3) manufacturing plants in the West Texas region that will be devoted to (i) the manufacture of the nitrogen-based fertilizer using BioNitrogen's proprietary systems, and (ii) the fulfillment of the supply obligations set forth in the Agreement (each a "Production Plant" and collectively the "Production Plants").

United Suppliers agrees to purchase from BioNitrogen the nitrogen-based fertilizer products which shall be in standard granular form and contain at least 46% nitrogen content.

BioNitrogen estimates that it will have output capacity of approximately 125,000 short tons of Product annually at each Production Plant. BioNitrogen agrees to make available to United Suppliers annually at least 125,000 short tons of the Product capacity from the West Texas Plant(s).

After construction of a Production Plant(s), BioNitrogen shall endeavor to operate each facility seven days per week based on a 49 week year. BioNitrogen shall bulk load Product five days per week for transportation by truck or rail.

The term of this Agreement shall commence on the date on which BioNitrogen completes construction of its first Production Plant and begins accepting Purchase Orders (the "Effective Date"). Upon establishment of the Effective Date, the Parties shall execute and deliver a commencement date letter that sets forth the Effective Date.

This Agreement shall continue for ten (10) years thereafter. This Agreement shall automatically renew for additional one (1) year terms unless it is terminated in writing by either Party at least one hundred twenty (120) days prior to the end of any term.

"As a retailer owned company, we must continue to find ways of bringing value to our retail owners and their grower customers alike. BioNitrogen's innovative technology is the type of opportunity we like to explore to keep us and our owners ahead of the game." stated Mr. Matt Carstens, United Suppliers, Vice President of Crop Nutrients, "We constantly look at new opportunities in these changing markets, and we are very happy with the advantages and outcome of working with BioNitrogen to achieve a long-term customer-supplier relationship that is in the best interests of all parties involved."

"We are very excited to be working with United Suppliers. They are definitely a modern leader in the plant and agricultural industry." stated Mr. Frank J. Segredo, BioNitrogen's Chief Corporate Development Officer. "We see this as a big step in a long journey working with United Suppliers and the first of a series of production plants we intend to open next year, both domestically and internationally."

About United Suppliers, Inc.

United Suppliers is a wholesale organization based in the rural community of Eldora, Iowa. The company is owned by agricultural retailers who do business throughout the United States, and provides owners a reliable, convenient and timely supply of crop protection and crop nutrient products as well as customized business solutions. United Suppliers is committed to the mutual benefits of long-term relationships with agricultural retail dealers. This commitment to the retail dealer is the driving force behind all management decisions. The board of directors, which is made up of owners/managers of agricultural retail dealerships, helps us maintain our focus. United Suppliers was established in 1963 by 30 Iowa retailers joining forces to manufacture feed and has since grown to over 800 owners in 20 states, with more than 300 employees and sales in excess of $2 billion. For more information please visit www.UnitedSuppliers.com.

About BioNitrogen Corp.

BioNitrogen is an entrepreneurial, American company that has been established to design and to build fully operational, turnkey manufacturing facilities to produce urea. BioNitrogen is undertaking these efforts in response to the challenges presented by an ever expanding world population, a rapidly increased need for food production, and an awareness of the fragility of the world's environment. Given all these challenges and the promise that the Company's products possess to effectively respond to these challenges, the Company believes that it is positioned at the right place and time. BioNitrogen's modular plant designs are capable of manufacturing 15 tons of urea fertilizer per hour for a total annual production of approximately 124,200 tons per plant.

BioNitrogen is headquartered in Miami, Florida, USA and trades on the over-the-counter pink current information tier under the stock symbol BION. Learn more at http://www.BioNitrogen.com/Invest_Today/.

Additional information can be found on BioNitrogen's website at www.BioNitrogen.com and an executive corporate summary video can be viewed here, http://www.BioNitrogen.com/slides/bionitrogen-video/.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 - This press release contains forward-looking statements, including without limitation statements about the operations and future prospects for BioNitrogen Corp. (the "Company"). Forward-looking statements in this press release should not be viewed as pledges or undertakings regarding future performance. These forward-looking statements are subject to risks and uncertainties that could cause the Company's actual results to vary materially from those anticipated. The Company cautions the reader not to place too much reliance upon any such forward-looking statements, because such statements reflect the opinions and beliefs of the Company only as of the date when they were made. Factors that may cause actual results to differ materially from the forward-looking statements contained in this release include, among others, the following: (i) the Company's future operational, financial or marketing performance; (ii) the ability of the Company to bring new products to market that are complementary to the products that the Company currently produces; (iii) the ability of the Company to increase or maintain profit margins on the products it offers to the marketplace; (iv) the strength of the Company's product development pipeline; (v) the Company's growth and profitability prospects; (vi) the estimated size and growth prospects of the natural fertilizer market; (vii) the Company's competitive position in the natural fertilizer market and its ability to take advantage of future opportunities in this market; (viii) the benefits of the Company's products to be realized by customers; and (ix) the receptiveness of the agricultural and commercial market for bulk urea or other products that the Company manufactures. Forward-looking statements are based on management's beliefs and opinions at the time the statements are made. The Company does not have any obligation to update forward-looking statements should circumstances change or should management's beliefs or opinions change.

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