BioNeutral Group Signs Definitive Agreements to Improve Balance Sheet by $6.8 Million and Lower Debt to Nearly Zero

NEWARK, N.J.--()--BioNeutral Group, Inc. (OTCBB: BONU), a specialty life science technology-based company, today announced that it has signed definitive financing and strategic distribution agreements, which will result in the assumption of, and indemnification for, $2.3 million in accounts payable and the assumption of, and indemnification for, $2 million in notes payable.

The Company also has signed an exclusive 10-year licensing and distribution agreement for Europe and Asia, which will result in the cancellation of an aggregate of $1 million in notes payable, non-cash revenue of $1 million and ongoing royalty payments. In addition, BioNeutral announced that it has entered into an equity financing agreement for a total of $2.5 million, which the Company can draw down on over the next 12 months consistent to the terms of the agreement and its business plan. The final number of shares of common stock that will be issued will depend on the future selling price of its shares. All of the aforementioned agreements are expected to close by year-end 2011. The Company has filed a Form 8-K with the SEC with respect to these agreements and requests that investors reference such agreements for more detail.

Frank Battafarano, Chairman of the Board of BioNeutral Group, said “The cumulative effect of these agreements represents a monumental and positive change of $6.8 million to our balance sheet and eliminates the majority of our liabilities. In addition to our strengthened financial position, we have gained access to an equity-based financing which the Company can draw on as it sees fit, whose proceeds will be used to further develop our product line, execute on our commercial sales strategies and expand our global footprint, including entry into the U.S. marketplace.”

About BioNeutral Group, Inc.

Headquartered in Morristown, New Jersey with laboratories at the New Jersey Institute of Technology/EDC in Newark, BioNeutral Group, Inc., is a specialty technology-based life-science company which has developed a technology platform that neutralizes harmful environmental contaminants, toxins and dangerous micro-organisms including bacteria, viruses, mold, fungi and spores. BioNeutral's products, Ygiene® and Ogiene®, kill germs and clean surfaces with a dramatic increase in speed and power over their rivals in the marketplace. BioNeutral's proprietary platform technology has been proven effective in surface, water and airborne applications. Its antimicrobial line of products under the Ygiene® brand have been approved by the EPA for sale in the United States and has previously been approved for sale in Germany and it is also permitted to be sold in the UK, France and Sweden. Auto Neutral is a registered trademark of BioNeutral Group, Inc. For more information on BioNeutral, including a listing of company products, leadership and background please visit www.bioneutral.com.

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Forward-Looking Statements: This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those described in the Company's filings with the Securities and Exchange Commission. BioNeutral routinely tests its formulations against those of its competitors. The results are published to let shareholders know how the Company's technology compares with known formulations in the market place. Any product claim for antimicrobial activity requires approval from the EPA or FDA, depending upon where and how the formulations are used. The EPA has approved and registered the Company's data and findings specific to Ygiene-206. BioNeutral's antimicrobial formulations will be marketed under the brand name Ygiene® and are available for sale in the United States.

Contacts

INVESTOR RELATIONS:
ProActive Capital Resources Group, LLC
Jeff Ramson, 212-792-4321
JRamson@proactivecrg.com
or
FOR THE COMPANY:
BioNeutral Group, Inc.
Chairman
Frank Battafarano, 973-286-2899
fb@altha.org
or
FOR VINFLUENCE PTY LTD:
Chairman
Wayne Johnson, +61 411 544 449
or
Executive
Andrew Phillips, +61 403 388 447

Contacts

INVESTOR RELATIONS:
ProActive Capital Resources Group, LLC
Jeff Ramson, 212-792-4321
JRamson@proactivecrg.com
or
FOR THE COMPANY:
BioNeutral Group, Inc.
Chairman
Frank Battafarano, 973-286-2899
fb@altha.org
or
FOR VINFLUENCE PTY LTD:
Chairman
Wayne Johnson, +61 411 544 449
or
Executive
Andrew Phillips, +61 403 388 447