BIOREM REPORTS YEAR END RESULTS

GUELPH, ON, April 12 /PRNewswire-FirstCall/ - BIOREM Inc. (TSXV: BRM) ("Biorem" or "the Company") today announced its results for the three and twelve-month periods ended December 31, 2010. Biorem's complete fiscal 2010 year-end financial statements and MD&A have been filed on SEDAR (www.sedar.com).

"Biorem had anticipated a difficult year financially but continued to proceed with a number of strategic business development investments in addition to reducing our cost structures," said Peter Bruijns, President & CEO. "During the year we continued to invest in our sales channels, completed the establishment of our Wholly Foreign Owned Enterprise in China, invested in two significant Biogas demonstration sites and advanced our Industrial VOC product development."

"With the investments made and changes completed in 2010 Biorem is positioned to achieve improved financial performance" added Mr. Bruijns. "We have come into 2011 with a backlog of $12.1 million while our key market, the United States, continues to struggle with its economic recovery."

FINANCIAL HIGHLIGHTS:

THREE MONTHS ENDED DECEMBER 31, 2010
Revenue for the three-month period ended December 31, 2010 (Q4 2010) was $4,603,000, compared $4,252,000 in the comparative period in the prior year. New orders for the quarter totaled $5,212,000.

Gross profit in Q4 2010 was $919,000 down significantly from $1,608,000 in Q4 2009. The Gross Margin decrease in Q4 of 2010 can be attributed to several factors including an increase in the Company's warranty and commissioning provision, an increase in the valuation allowance on certain inventory, and the impacts of three lower margin contracts that the Company accepted for strategic reasons. The revised warranty and commissioning methodology has taken into account updated historical experience rates as well as the inclusion of additional indirect and direct costs relating to items such as travel and internal labour which were previously not factored into the warranty estimate. Management believes that the revised methodology provides a better estimate of the warranty and commissioning costs.

Total operating expenses in Q4 2010 were $1,777,000 compared to $1,611,755 in Q4 2009.

In Q4 2010, Adjusted EBITDA was $(858,000), down from $(2,000) in the same period a year ago.

Net loss for the fourth quarter of 2010 was $1,526,000, or a loss of $0.13 per basic and diluted share, compared to net loss of $360,000, or $0.04 per basic and diluted share in the fourth quarter of 2009. The net loss in Q4 2010 was caused by an increase in our allowance for bad debts and the following non-cash items; an increase in the warranty and commissioning provision, a partial write-down of the deferred financing costs in connection with the debt repayment, the accelerated depreciation of certain pilot plants and the write down of investment tax credit asset.

TWELVE MONTHS ENDED DECEMBER 31, 2010
For the twelve months ended December 31, 2010, revenue decreased 8.0% to $17,360,000, from $18,878,000 for the same period in 2009. The decrease in revenue year over year in 2010 can be attributed to the low backlog and bookings as at and for the year end of 2009 and the depreciation of the US dollar against the Canadian dollar. These lower bookings and backlog in 2009 were impacted by the recession experienced during 2009. Consolidated sales reported in Canadian dollars were also negatively impacted as a result of the foreign exchange movements between the Canadian and US dollars. US customer revenue, as reported in Canadian dollars, decreased by 17% from 2009 to 2010. A portion of this decrease is attributable to the strengthening of the Canadian dollar against the US dollar. The average US to Canadian exchange rate for 2010 was $1.030 versus $1.145 in 2009, a decline of 10%.

Gross profit was $5,084,000 for the year-ended December 31, 2010, down 33.0% from gross profit of $7,588,000 for the year-ended December 31, 2009. The Gross profit decline can be attributed to the Company delivering two strategic projects during 2010, investing in a demonstration pilot, and increasing its warranty and commissioning provision at the end of 2010.

Total operating expenses were $6,628,000 for the year-ended December 31, 2010 compared to $6,201,000 for the year-ended December 31, 2009. The increase was due to the Company significantly focusing on research into proprietary technology for use in Biogas Sweetening and VOC applications.

In fiscal 2010, Adjusted EBITDA decreased to $(1,544,000) from $1,387,000 in fiscal 2009.

Net loss for fiscal 2010 was $3,138,000, or a loss of $0.26 per basic and diluted share, compared to net loss of $503,000, or a loss of $0.04 per basic and diluted share in 2009.

As at December 31, 2010, the Company had working capital of $1,734,000, including cash and short-term investments of $831,000, trade and other receivables of $5,010,000, and unbilled revenue of $4,602,000, compared to total working capital of $7,089,000, cash and short-term investments of $4,031,000, trade and other receivables of $2,898,000, and unbilled revenue of $3,449,000 as at December 31, 2009. Working capital was negatively impacted by cash used in operations of $1,857,000, the early repayment of long term debt of $1,000,000 and the inclusion of the long term debt in current liabilities in 2010 as the amount becomes due on October 31, 2011. Excluding the long term debt from the 2010 calculation of working capital would result in an adjusted working capital of $3,568,000 as at December 31, 2010. At October 31, 2011 the Company will be required to pay the outstanding balance of its debenture totaling $2,000,000.

About BIOREM Inc.
Biorem is a leading clean technology company that designs, manufactures and distributes a comprehensive line of high-efficiency air emissions control systems used to eliminate odors, volatile organic compounds (VOCs), and hazardous air pollutants (HAPs). With sales and manufacturing offices across the continent, a dedicated research facility, a worldwide sales representative network and over 600 installed systems worldwide, Biorem not only offers state-of-the-art technology-based products but also peace of mind for municipalities, industrial companies and their surrounding communities. Additional information on Biorem is available on our website at www.biorem.biz.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy 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.

SOURCE Biorem Inc.