Biocide shareholder update

Biocide International provides update for shareholders.

9th FEBRUARY 2010

SHAREHOLDERS ANNOUNCEMENT

Following on from our last announcement in December 2009, we are pleased to update on substantial progress already achieved in 2010.

The sales delivery team has worked very hard at consolidating its existing markets, improving sales strategy and opportunities whilst exploring new territories across the Globe. As a result we are very happy to confirm the following achievements’;

South America – A contract has been signed with a large distribution company, who are working extensively with Government at Ministerial level with a very large order of Mozzi-Mort expected imminently. Successful laboratory tests proved the effectiveness of Mozzi-Mort in regard to the ongoing problem of Chagas Disease, which is in epidemic proportions in South America.

Final discussions continue and we will be making a further announcement as soon as the completed order is received. They are now looking at EnviroCair at Government level after successful application results in trials.  The distribution company is now in discussions with several South American Countries through its Government level introductions and success of the product.

Ghana – A UK based distributor who manufactures product in Ghana and also imports / exports in Ghana has trialed Mozzi-Mort with great success in a new application. They are presently in Ghana and have signed a distribution agreement and therefore looking to order product of at least £30,000 per month, increasing with distribution after 3 month.

Saudi Arabia – A Healthcare Company based in the Midlands, has partners in his existing business in The Middle East. They have booked the Marriott Hotel in Riyadh for the weekend of 20th, 21st and 22nd of February to launch the product and train all distribution arms for the region. Other partners in his business in the Middle East are attending as potential distributors for Bahrain, UAE, Lebanon, and Qatar amongst others. Biotech will be attending this event to support the venture.

Oman – The distributor for Oman is now fully recovered after his accident just 2 days before his major launch in the territory. He will return on 22nd of February for the re-launch and distribution of EnviroCair into confirmed markets already secured by him and his local based team.

Iran – Contracts have been signed with a UK / Iranian based distribution company who are working with the Health Minister. After long ongoing discussions a large order is expected in February with ongoing substantial orders to follow monthly.

South Africa – The distributor in South Africa is growing rapidly with operations functioning in Johannesburg, Durban, Pretoria and Cape Town amongst other areas. Both EnviroCair and Mozzi-Mort is being received well with high expectancy on a monthly shipment to the country. The first 2 shipments are now completed and product is being sold very quickly.

Nigeria - A contract has been signed with a company to distribute products in Nigeria. They have a very large team of employees and delivery into most healthcare and retail markets. They have agreed a monthly order of minimum £30,000 per month for first 6 months trading, increasing depending on market penetration thereafter.

The sales delivery team is now dealing with over 27 countries on several continents and announcements will be made as they come to fruition. Biotech has implemented new methods of accelerating the process from initial discussions with interested parties, to registration and contractual terms with distributors for that territory.

Biotech now implements several key factors to ensure that the products and the business has more standarised procedures;

(a) Main distributors are actively sought from contacts that have the means to purchase a license fee and initial stock, based on they’re existing or agreed routes to market. They are also responsible for product registration in that territory.

(b) A standarised price list for distribution is provided and enforced that has clear margins defined to control RRP, Markups for distributors and sub-distributors to ensure a realistic and successful business model allows sales and growth.

When Biocide International PLC makes announcements it has to consider the commercial sensitivity of its sales leads, contracts and partnership arrangements. There are many companies and individuals that envy the unique position that we have built up and while it is tempting for us to announce all our activities it may do considerable long-term harm.

We have recently increased our communications security to the highest level. Please remember an ill-considered statement from whatever source can cause untold damage particularly with our overseas clients.

In the last seven years we have spent millions of pounds creating markets and enhancing our products. With the de listing or banning of many of our rivals we are now exceptionally well placed to benefit from that investment.  This small company has worked through the credit crunch, intense competition and numerous challenges at all levels. We have the support of our large shareholders and they are actively supporting the business and we ask all the stakeholders to continue with their support. . As previously mentioned we have taken a stand at the Master Investor show on the 24th April at the Islington Design Centre. I do hope that we can see many of you at the show. Finally, we are particularly grateful to one of our manufacturers who have provided additional production infrastructure, credit terms and investment.

BIOCIDE INTERNATIONAL PLC

FURTHER WARNING

J P Jenkins is part of Rivington Street Holdings.
Rivington Street Corporate Finance is regulated by the Financial Services Authority and is a PLUS Corporate Adviser Member.