BIOREM reports record second quarter revenues



    GUELPH, ON, Aug. 20 /CNW/ - BIOREM Inc. ("Biorem" or "the Company")
(TSX-V: BRM) announced today its results for the three and six-month periods
ended June 30, 2009. Biorem's complete fiscal 2009 second quarter financial
statements and MD&A are filed on SEDAR (www.sedar.com).
    "We are pleased with the exceptional revenue growth we had in the
quarter, reporting record second quarter revenue, as well as strong gross
profit and gross margin," said Peter Bruijns, President and CEO of Biorem.
"Our gross margins have recovered to the 40% level as expected. This is also
the second consecutive quarter that we have generated positive cash flows from
operations, which were supported by strong new order numbers."

    
    Financial Summary:

                               ----------------------------------------------
                                 Three-months ended       Six-months ended
                                      June 30,                June 30,
    -------------------------------------------------------------------------
    (Information in table
     is in thousands, except
     per share data)              2009        2008        2009        2008
    -------------------------------------------------------------------------
    REVENUE                       $5,678      $2,472      $9,715      $5,657
    -------------------------------------------------------------------------
    GROSS PROFIT                   2,326         807       3,632       2,262
    -------------------------------------------------------------------------
    EBITDA(1)                         32        (741)       (150)       (505)
    -------------------------------------------------------------------------
    NET EARNINGS                    (239)       (870)       (664)       (767)
    -------------------------------------------------------------------------
    BASIC EARNINGS PER SHARE       (0.02)      (0.07)      (0.06)      (0.06)
    -------------------------------------------------------------------------
    DILUTED EARNINGS PER SHARE     (0.02)      (0.07)      (0.06)      (0.06)
    -------------------------------------------------------------------------
    WEIGHTED AVERAGE COMMON
     SHARES                       11,978      11,978      11,978      11,978
    -------------------------------------------------------------------------
    

    Revenue in the three-month period ended June 30, 2009 (Q2 2009) increased
130% to $5.7 million from $3.2 million over the comparative period in the
prior year. New orders in the second quarter of 2009 totaled $5.2 million,
resulting in a current order backlog of $11.1 million. The order backlog as at
June 30, 2009 was down from an order backlog of $14.6 million as at June 30,
2008 and $12.8 million as at March 31, 2009.
    Gross profit in Q2 2009 increased 188% to $2.3 million, or 41% of
revenue, from $0.8 million, or 33% in the same quarter a year ago. Gross
margin is back to historical levels of over 40%, after a decrease in Q1 of
2009.
    EBITDA(1) in the second quarter of 2009 totaled $32,000, compared to a
loss of $741,000 in the second quarter of 2008. EBITDA(1) in Q2 2009 was
impacted by a significant foreign exchange loss of $425,000, versus a $31,000
loss in the second quarter of 2008.
    In the second quarter of 2009, cash flows from operations totaled $0.3
million, compared to negative $1.1 million in the second quarter a year ago.
    As at June 30, 2009, Biorem had total working capital of $6.6 million,
cash and short-term investments of $2.5 million and unbilled revenue of $2.6
million, compared to total working capital of $6.9 million, cash and
short-term investments of $2.2 million and unbilled revenue of $3.8 million as
at December 31, 2008.
    Subsequent to the end of the second quarter, the Company agreed to pay
$30,000 to its lender in connection with waiving compliance by Biorem of
certain Bookings covenants as set out in the loan agreements between the
parties. Payment shall be completed by issuing 78,947 common shares at a price
of $0.38 per share. The shares for debt agreement is subject to acceptance by
the TSX Venture Exchange.

    About BIOREM Inc.

    BIOREM manufactures Biosorbens(R) biofilter media and is a leading
supplier of biofilters and biotrickling for air pollution control in municipal
and industrial applications, including BIOCUBE(R) modular units and Mytilus(R)
biotrickling filters. With over 600 installed systems and over a decade of
experience, the Company's products are the technology of choice for odor
control at wastewater treatment plants across North America. Additional
information on BIOREM is also available at our web site at www.biorem.biz.

    
    -------------------------------------------------------------------------

    The TSX Venture Exchange Inc. has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release. The TSX
    Venture Exchange Inc. has neither approved nor disapproved of the
    contents of this release.
    

    Forward-Looking Statements

    This press release contains forward-looking statements based on current
expectations. These forward-looking statements contain various risks and
uncertainties that could cause actual results to differ materially from those
reflected in the forward-looking statements. Risks and uncertainties about the
Company's business are more fully discussed in the disclosure materials,
financial statements and MD&A filed with the securities regulatory authorities
in Canada on www.sedar.com

    Non-GAAP Measures

    (1). EBITDA is a non-GAAP earnings measure, therefore, it does not have
any standardized meaning prescribed by Canadian generally accepted accounting
principles and may not be similar to measures presented by other companies.
EBITDA represents earnings before interest, income taxes, depreciation and
amortization. This measure is important to management since it is used by
potential lenders to evaluate the ongoing cash generating capability of the
Company and thus the amounts those lenders are willing to lend to the Company.

    "Order Bookings" and "Order Backlog" do not have any standardized meaning
prescribed by Canadian generally accepted accounting principles ("GAAP") and
may not be comparable to measures presented by other companies.
    Order Bookings and Order Backlog are non-GAAP measures that the Company
uses to evaluate its sales performance. Order Bookings are those binding
contracts that the Company enters into with a third party for the delivery of
our products or services. As Order Bookings are received, the contract value
(before any associated sales taxes) is included in the Order Backlog. The
Order Backlog is reduced by the revenue that is recognized on each project and
then adjusted for any currency changes.

    %SEDAR: 00020304E




For further information:

For further information: Ed Corbett, Chief Financial Officer, BIOREM
Technologies Inc., ecorbett@biorem.biz, Tel: (519) 767-9100 x275

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BIOREM Inc.

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