BioNeutral Group Collaborating with Steri-7 on Product Distribution

BioNeutral Group, Inc (OTCBB:BONU), a specialty chemical technology-based life science company, announced today that in collaboration with Steri-7™, a UK-based specialty chemical health care company, it will be expanding availability of its sporicidal formulations in the UK, Europe and the Middle East. Steri-7™ recently obtained approval from the UK’s National Health Service (NHS) to market its formulations as a sporicidal cleaner/wipe.

BioNeutral has concluded testing for an application to the Environmental Protection Agency (EPA). If and when received, BioNeutral anticipates this approval will facilitate entry into the North American and South American markets as well as complementary markets worldwide. Steri-7™ now has over 20 distributors within the broader healthcare market. In May 2010, BioNeutral entered into a non-binding Head of Terms letter setting forth a plan to acquire all of the shares of Steri-7™. The acquisition is subject to negotiation of a definitive acquisition agreement, satisfactory completion of due diligence, completion of a specified financing transaction by BioNeutral, and other customary terms and conditions. Terms and conditions are being held confidential pending execution of a definitive agreement.

James Fraser, Chief Executive Officer of Steri-7™, said, “It has taken two years to meet all of the exhaustive test requirements for NHS approval as a sporicidal cleaner/wipe to help eliminate MRSA, C. difficile, and other dangerous and life-threatening healthcare-acquired infections. Approval by the NHS (approval #VJT 183, 184, 185) is essential for distribution throughout the healthcare sector, including hospitals and nursing homes, in the UK, as is EPA approval in the US. We believe a combined BioNeutral/Steri-7™ product line will meet the requirements in all major markets around the world.”

Mr. Fraser continued, “Steri-7™ has been approved by the Air Ambulance Service, and our company has recently received ISO 13485 approval status, which represents the highest standard set by the International Organization for Standardization. Only products made to this level may use the CE mark for surgical instrument cleaners that facilitates entry to European countries.”

Nick Sayer, Worldwide Director of Sales and Marketing for Steri-7™, added, “To my knowledge, there is no other approved product that both addresses difficult-to-kill spores such as C. difficile and is approved by the NHS. The high-level disinfection wipes market is quickly growing in the UK and Europe and is estimated at 100 million pounds per year.”

About BioNeutral Group, Inc.
Headquartered at the New Jersey Institute of Technology/EDC in Newark, New Jersey, BioNeutral Group, Inc., is a specialty chemical technology-based life science company that is developing and intends to commercialize a combinational chemistry-based technology which can neutralize harmful environmental contaminants, toxins and dangerous microorganisms including bacteria, viruses, mold, fungi and spores. The formulations, including Ygiene™ and Ogiene™, are both eco-friendly. The Company has combined these widely used compounds in highly specialized ways to create products that dramatically enhance disinfecting and cleaning results; products include BioNeutralizers and ChemoNeutralizers. BioNeutral’s proprietary platform technology has been proven effective in surface, water and airborne applications. Its antimicrobial line of products under the Ygiene™ brand have not yet been submitted to the EPA for approval for sale in the United States; however they have been approved in Germany and are allowed in the UK, France and Sweden.

About Steri-7™
Steri-7™ is a privately held UK company with a broad product line of advanced proprietary antimicrobial formulations designed to eliminate bacteria, virus and spores in the health care and related industries with products which include sporicidal hard surface sprays, sporicidal wipes and sporicidal hand cleansers. All products are mild, environmentally friendly and provide long-lasting protection which is unique in the industry. Sales have commenced in the UK and the Middle East.

Forward-Looking Statements
BioNeutral routinely tests its formulations against those of its competitors. The results are published to let shareholders know how the Company's technology compares with known formulations in the market place. Any product claim for antimicrobial activity requires approval from the EPA or FDA, depending upon where and how the formulations are used. The EPA and FDA have not reviewed or confirmed the Company's data and findings. BioNeutral's antimicrobial formulations will be marketed under the brand name Ygiene™ and are not yet available for sale in the United States.

Source: Business Wire/Yahoo Finance