biopack environmental solutions

Archived Press Release

Biopack Signs Agreement to Acquire "Bio-Coating" Machines to Significantly Increase Production
Feb 1, 2010

HONG KONG--(BUSINESS WIRE)-- Biopack Environmental Solutions Inc. (OTCBB: BPAC), a designer, manufacturer, and supplier of 100% biodegradable packaging products, is pleased to announce that it has entered into a purchase order ("PO") agreement to buy up to 10 custom designed, fully automated "Bio-Coating" machines. Capable of coating up to 47 million pieces a year per machine, each one could increase production capacity by over 15 times the current coated tray production rate, allowing Biopack to accept significantly larger orders.

On October 22nd, 2009, Biopack first introduced its 100% biodegradable coated trays. These coated trays have increased the suitability of Biopack's products for large market segments in areas of the packaging industry, such as fresh and frozen meats, ready-made meals and baked goods. With strong interest being expressed to the company following the introduction of this innovative product, Biopack announced its first order on November 23rd, 2009, and since then has looked for ways to improve production capacity, efficiency and consistency of application. To facilitate this, Biopack has worked closely with a leading machine building company in the design and development of the Bio-Coating machine. These machines are designed to automate the entire coating application process, consolidating several steps and will greatly increase production efficiency. Each machine may be quickly and individually adjusted to suit the weight of coating required for the various types and sizes of products. The introduction of these machines will not only allow Biopack to dramatically increase the volume of trays which can be coated, but will allow for a more consistent coating application.

Gerald Lau, CEO of Biopack states "We are very excited to get the first Bio-Coating machine into our factory and in operation. We spent a considerable amount of resources to develop a coating solution for our trays, as we believed there would be great demand for it once available." He adds "With strong initial reaction and interest coupled with our first orders, we believe the coated tray market and the ability of Biopack to handle the subsequent large volume orders, has the potential to not only significantly increase our revenues, but at the same time allow us to break into new market segments and product offerings that were previously unattainable."

*On October 22, 2009 Biopack announced after much trial and error, the successful completion of initial sampling runs and testing of its moisture, grease and water resistant trays or "coated" trays. These would allow Biopack's compostable trays to be used in product applications in which moisture resistance is required over a longer period of time. These product applications include large market segments such as frozen food and entrees, ready-made meals, fresh and frozen meat, cut fruit and vegetables, baked goods as well as the seafood market.

*On November 23, 2009 Biopack announced initial sales of a water resistant or "coated" fish tray to one of the largest international food conglomerates in the world. This tray was specifically made to complement an existing product within this retailers Sustainable Seafood Program, a 10-point policy which dictates how seafood is purchased and sold, based on social, ecological and economic considerations.

About Biopack:

Biopack manufactures 100% biodegradable consumer packaging products from locally available sugar cane waste called Bagasse. Based in Hong Kong with manufacturing facilities in Jiangmen, China, Biopack has earned the "premium brand" label in the biodegradable packaging market in Europe. Distributed under the "Roots Biopack" trademark, Biopack's unique line of compostable packaging is sold in 12 European countries, North America, Hong Kong, Taiwan and South Africa. For investor inquiries and information about our comprehensive line of biodegradable packaging solutions, please visit our website at http://www.biopackenvironmental.com

Safe Harbor

All statements other than statements of historical fact that are included in this press release and that mention activities, events or developments that we believe may occur in the future are forward-looking statements. The use of words such as "anticipate," "continue," "estimate," "expect," "may," "project," "should," "believe", "could", and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this press release include whether the introduction of these machines will not only allow Biopack to dramatically increase the volume of trays which can be coated, but will allow for a more consistent coating application and Biopack's belief the coated tray market and the ability of Biopack to handle the subsequent large volume orders, has the potential to not only significantly increase its revenues, but at the same time allow it to break into new market segments and product offerings that were previously unattainable. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Risks that might cause actual results to differ from these projections include, but are not limited to, those discussed in Biopack's most recent Annual Report on Form 10-KSB and other documents filed by the Company from time to time with the U.S. Securities and Exchange Commission. Please consult a broker or investment professional before purchasing securities.

Contact:
Sean Webster
COO
Email: Info@biopackev.com
Tel: 852-3586-1383