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Biopack Look at Drastically Increasing Production of Biodegradable Packaging Products

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.

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