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Soil Biogenics Limited: Soil Biogenics Limited, a Biotechnology Company Focusing on Development and Production of Ecological Co

^{Published on 2008-12-17 16:41:54 - Market Wire}
 

MOSCOW, RUSSIAN FEDERATION--(Marketwire - December 17, 2008) - Soil Biogenics Limited (the "Company," "Soil Biogenics") (PINKSHEETS: [ SOBGF ]), a biotechnology company focusing on development and production of ecological composts and soils, is pleased to announce the successful completion of negotiations with the Russian Railway Agency and Moscow City Government.

"PIKSA INTER LTD" a wholly owned subsidiary of SOIL BIOGENICS LTD is pleased to announce that it has received a letter of intent from the Russian Railway Agency (RRA) for the supply in 2009 of 13.000 m3 of PIKSA Supercompost for sales of 250 million rubles (approx. US $8 million). The Supercompost will be used to recover the soils along the railways. This is the first step towards a larger program by the Agency to implement ecology and security of its railway system.

Upon receipt of the letter of intent from the Russian Railway Agency, negotiations for the corresponding contract will commence. The Company expects to commence delivery of the product in late February 2009.

Furthermore, the Moscow City Government has confirmed to the Company that it will purchase an additional 3.000 m3 of PIKSA Supercompost for its needs in 2009, on top of the approved volume for 2009. This will result in additional sales of about 51 million ruble (or US $1.7 million).

The Company is negotiating with Russian banks and western investors for credit facilities of approximately US $4 million. This will enable the Company to complete its ambitious 2009 sales program and double the sales. Currency exchange risks remain strong, due to the Russian Central Bank policy of slowly devaluating the ruble against the dollar. The Russian Central Bank policy in 2008 has led to a ruble depreciation of 18%. Nevertheless, the Management of the Company is confident that better money management will allow it to reduce these currency risks.

Soil Biogenics is a biotechnology company focusing on development and production of ecological composts and soils. Soil Biogenics' stock trades under the symbol "SOBGF" on the Pink Sheets in the United States.

 ON BEHALF OF THE BOARD "Agustin Gomez de Segura" Agustín Gomez de Segura President, CEO and Director 

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