biopack environmental solutions

Archived Press Release

Biopack Gross Revenue Up 304 Percent Year-to-Date
Aug 25, 2009

HONG KONG - Biopack Environmental Solutions Inc. (OTCBB: BPAC), a leading designer, manufacturer, and supplier of 100% biodegradable and compostable packaging products, is pleased to announce second quarter and year-to-date revenue results.

For the quarter ended June 30, 2009, Biopack reported gross revenue of $403,101 compared to gross revenue of $123,192 in the second quarter of 2009, an increase of $279,909 or 227%. For the six months ended June 30, 2009, Biopack reported gross revenue of $663,498 compared to $164,430 during the same period in 2008. This represents an increase of $499,068 or 304%. This increase in sales is primarily the result of Biopack's renewed sales and marketing efforts, particularly with respect to packaging orders secured in the European market, Biopack's traditional stronghold.

Biopack has also reported a corresponding increase in its cost of sales for the three month period ended June 30, 2009 of $523,333 compared to cost of sales of $114,421 for the same period in 2008. This increase is due in part to the costs of higher production volumes and in part to Biopack's decision to "front-load" the installation of infrastructure in its factory, which is currently home to 16 production machines but was built to support 44. As Biopack has already paid to install the necessary electrical, piping, water filtration, building requirements, etc for an additional 28 machines, it anticipates that cost of sales, expressed as a percentage of gross revenue, should decrease as production volume increases.

"We are pleased to report significant revenue growth in both the second quarter and the first six months of the year" commented Gerald Lau, Biopack's Chief Executive Officer. "Now that we have proven our ability to achieve steady and consistent production with good volume, we hope to win the bigger clients we did not have enough capacity to supply from our old factory. Going forward, our plan is to focus on increasing European orders and furthering our expansion into North America, where we have noticed a dramatic difference in the environmental packaging market. Although the European market has long shown a preference for environmentally sensitive products, we believe that the current U.S. administration's focus on green technology is already influencing a shift away from more traditional packaging products, such as those made from Styrofoam - which has actually been banned in a number of U.S. cities - towards environmentally friendly products like ours. We believe that our products and our company are well positioned to benefit from this trend."

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 currently sold in 14 countries. For investor inquiries and information about our comprehensive line of biodegradable packaging solutions, please visit our website 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" and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this press release include those regarding Biopack's beliefs that cost of sales, expressed as a percentage of gross revenue, should decrease as production volume increases, that its production volumes will continue to increase, and that increases in production capacity should enable it to attract bigger clients. 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.

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