BioNeutral Group Signs Agreement to Acquire Steri-7

Combined Product Formulations to Offer an Intergraded Disinfecting Solution for International Distributors, Health Care Providers, Industrial and Institutional Customers, and Consumers

BioNeutral Group, Inc. (OTCBB:BONU), a specialty chemical technology-based life science company, announced today the signing of an agreement to acquire all of the shares of Steri-7, a UK manufacturer and supplier of proprietary formulations in the disinfectant and cleaning field with sales in Europe and the Middle East. Steri-7 and BioNeutral technologies offer consistent performance claims for worldwide solutions in the health care and related fields. The parties hope to finish documentation by the end of May and close by the end of July. Terms and conditions are being held confidential.

Steri-7 has sales of approximately one million pounds for this fiscal year and currently offers products for the hospital, nursing home, physician office, police department and equine market in the UK and Europe. Sales have commenced utilizing some of the largest distributors on the continent. Steri-7 and BioNeutral technologies are designed to meet health regulatory requirements in all major markets around the world, offering opportunities and solutions for international distributors to maintain consistent claims and market more effectively.

Jim Fraser, CEO of Steri-7 said: “We are concentrating on Europe and the Middle East, with the best formulations on the market. Our business is growing very fast and it will be exciting to serve large international distributors with an intergraded product line. Bioneutral technology will open up the US and related markets with an overall product line that will create a large successful company.”

Nick Sayer, Managing Director Worldwide for Steri-7 said: “7 is approved by the NHS here in the UK and our distributors are doing quite well with our products. Our Steri – 7 line shows sporicidal results for up to 7 days and we are excited about the prospects of becoming the gold standard in the industry. We just launched our new Equine product line in the US. It works well enough for the Queen’s horses and the Aga Kahn as their stables now use Steri-7.”

Andy Kielbania, Chief Scientist for Bioneutral, said: “Both of the technology platforms, BioNeutral and Steri-7, can jointly help us create a class of super-products that vastly outperform competing products on the market.”

Stephen J. Browand, President and CEO for Bioneutral, said: “This acquisition is designed to produce technologies that can give rise to even better products in the future, while meeting the two regulatory systems—those in the US and the UK—that are adopted by most countries of the world. Large players in the health care and related markets are global, and we believe that this combination of products will be very appealing to a wide range of customers.”

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