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CVF Technologies Corporation's Holding - BIOREM Makes Strategic Acquisition

Posted on: Tuesday, 5 July 2005, 15:00 CDT

WILLIAMSVILLE, N.Y., July 5 /PRNewswire-FirstCall/ -- CVF Technologies Corporation (BULLETIN BOARD: CNVT) , is pleased to announce that its holding, BIOREM Inc., on July 1, 2005 completed the acquisition of the assets of Biocube LLC of Victor, NY through a new, wholly owned, U.S. subsidiary which will continue the operations from Victor, NY under the name BIOREM Environmental Inc.

CVF Technologies Corporation currently owns 32% of Biorem and CVF's shareholdings in Biorem are currently valued at approximately CDN $9.6 million. This equates to approximately $0.56 per CVF common share.

Biocube manufactures a unique line of modular biofilters for odor control in the small to intermediate airflow range and has more than 300 systems installed worldwide. Biocube's sales in fiscal 2004 were $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 CDN $346,000 (CDN $3.15 per share) was completed in accordance with regulatory approval simultaneously with the closing of the transaction. The shares are subject to a hold period pursuant to Canadian securities laws that expires on November 7, 2005 and a hold period pursuant to US securities laws. No bonus, commission or finder's fee was paid in connection with the private placement.

"This acquisition marks another significant step in our goal of consolidating the biofilter market, bringing together biological odor 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 odors from sewage pumping stations and small sewage treatment plants. There are hundreds of thousands of these stations in North America and many have serious odor emission problems. Biocube offers the most competitive price point for the low air flow 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.

"In addition to Biocube's broad customer base, we benefit from the sales infrastructure and the addition of an experienced team of professionals. Mr. Ego, who will join us as a senior manager of BIOREM, will play an integral role in the management of our combined business development and the rapid expansion of our international business. This acquisition will also give BIOREM a US business base to support our strong market position there." Mr. Herner continued.

Mr. Ego commented that, "It is timely for us to come together with BIOREM, join resources and expand our position in this young and rapidly growing market. BIOREM and Biocube have many complimentary strengths in product, market application and personnel. Together we have a real opportunity to leverage these strengths and emerge as the industry leader in biological odor control systems."

BIOREM (http://www.biorem.biz/) manufactures BIOSORBENS(TM) a high-efficiency permanent biofilter media and is a leading supplier of biofilters for air pollution control in municipal and industrial applications including the BASYS(TM) modular and BIOFILTAIR(TM) field erected systems. With over 100 installed systems and over a decade of experience, the Corporation's groundbreaking biofilters are the technology of choice for wastewater treatment plants and pumping stations across North America.

CVF Technologies Corporation is headquartered in Williamsville, New York. CVF is a technology development company, whose principal business is sourcing, funding and managing emerging pre-public technology companies with significant market potential. Founded in 1989, CVF's holdings include four companies involved primarily in environmental products/services.

Certain statements made in this press release which are not historical facts are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these statements involve risks and uncertainties, which may cause actual results or achievements to be materially different from any future results and achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, product demand and market acceptance risks for the products and technologies of CVF's subsidiary companies and investees; the impact of competitive products, technologies and pricing; delays or difficulties in developing, producing, testing and selling new products and technologies; the ability of the company's subsidiaries and investees to obtain necessary financing for their operations and to consummate initial public offerings of their stock; the effect of the Company's accounting policies; the effect of trade restrictions and other risks detailed in the company's Statement on Form 10-SB/A filed with the U.S. Securities and Exchange Commission and any subsequent filings with the Commission.

For more information please contact: http://www.cvfcorp.com/

CVF Technologies Corporation

CONTACT: Robert L. Miller, Chief Financial Officer, or Jeffrey Dreben,President & CEO, both +1-716-565-4711, both of CVF Technologies Corporation

Web site: http://www.cvfcorp.com/http://www.biorem.biz/

Source: PRNewswire-FirstCall

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