Biorem purchases Biocube

Guelph - Biorem Inc. has completed the acquisition of the assets of Biocube LLC of Victor, NY through a new, wholly owned, U.S. subsidiary, which will continue their operations under the name Biorem Environmental Inc.

Biocube manufactures a line of modular biofilters for odour control in the small to intermediate airflow range and has more than 300 systems installed worldwide. Biocube's sales in fiscal 2004 were $3.0 million (US$2.4 million) and the purchase price was approximately one times annual sales, settled in cash. All seven full time Biocube employees have been offered positions at Biorem Environmental Inc. The transaction is expected to be accretive to Biorem fiscal 2005 earnings.

A private placement to Mr. Herbert Ego, former President and CEO of Biocube, of approximately 110,000 common shares of Biorem Inc. at an aggregate subscription price of $346,000 ($3.15 per share) was completed in accordance with regulatory approval simultaneously with the closing of the transaction.

"This acquisition marks another significant step in our goal of consolidating the biofilter market, bringing together biological odour control companies that are the best in their respective segments," commented Brian Herner, President and CEO of Biorem. "Combined with new product developments and improved application technology, we are committed to providing our customers the best product selection and performance capability available."

Biocube's specialized product line includes a patented modular resin tray biofilter that is ideal for treating odours from sewage pumping stations and small sewage treatment plants. There are hundreds of thousands of these stations in North America and many have serious odour emission problems. Biocube offers the most competitive price point for the low airflow market. The size and price make it an excellent product for entry into foreign markets. Successful installations have already been completed in Saudi Arabia, Jordan, South Africa and Peru."

Through its wholly owned subsidiary, Biorem Technologies Inc., manufactures Biosorbens a highefficiency permanent biofilter media and is a leading supplier of biofilters for air pollution control in municipal and industrial applications including the Basys modular and Biofiltair field erected systems.