Guelph, Ontario, (August 12, 2008). Biorem Inc. (TSXV: BRM) announced today its results for the second quarter ended June 30, 2008, which are summarized in the following table:

Consolidated revenue in the quarter was $2,472,000, which is up $258,000 or 11.6% over the comparative period in the prior year. Consolidated revenue for the year-to-date was $5,657,000 which is up $1,672,000 or 42% over the prior year.

Order Bookings for the first half of 2008 totaled $10,267,000 consisting of $1.4 million from Industrial; $1.4 million from International and $7.5 million from Municipal. The Order Backlog is $14.7 million at the end of the quarter. The Order Backlog is up $5.7 million or 63% compared to the same period ending June 30, 2007.

Gross profit in the quarter was $807,000, which is up $80,000 or 11% over the comparative period in the prior year. The gross margin percentage for the quarter was the same as in the prior year.

Gross profit year-to-date was $2,262,000 which is up $917,000 or 68% over the prior year. The gross profit increase is a result of increased revenue as well as improved margins on projects. The gross margin percentage for the year-to-date increased to 40% from 34% in the prior year.

Operating expenses in the quarter were $1,548,000, which were $26,000 or 1.7% higher than for the comparative period in the prior year. The variance by expense component is outlined as follows:

• Sales and marketing expenses of $625,000 were down $46,000 or 6.9%. 
   
• Research and development expenses net of government assistance and investment tax credits of $269,000 were up $135,000 or 100%. These expenses are partially offset by government assistance and investment tax credits. The Company received notice that it was approved by IRAP for a substantial research project targeting industrial air pollution product development in the amount of $404,000.
  
• General and administrative expenses are up $80,000 or 15%. This increase was a result of one-time only reorganization costs.
  
• Fluctuations in foreign exchange rates in the second quarter resulted in an exchange loss of $31,000 in 2008 as compared to an exchange loss in the comparative period of 2007 of $174,000.

Total working capital at June 30, 2008 was $3,483,000, which is a reduction of $380,000 since the start of the year. Cash used in operating activities during the quarter was $1,074,000 and for the year-to-date was $1,930,000. Offsetting the reduction in cash is the increase in Unbilled Revenue at the end of Q2 08 to $1,904,000 from $128,000 at December 31, 2007. This represents revenue that has been recognized but not yet invoiced. This timing difference is due to future scheduled sales invoicing according to contract terms. Unbilled Revenue is a contractual obligation of our customers and will be turned into cash over the short term. This high level of Unbilled Revenue is a result of increased project activity and larger sized contracts.

Commenting on the quarterly results, Peter Bruijns, President and CEO said, “The Company is performing better in 2008 than 2007 and we are confident that this trend will continue. This confidence is embedded in the historically high level of our Backlog. We anticipate that approximately 80% of this $15 million Backlog will translate into revenue over the next four quarters. We are also seeing increases in our sales pipeline, which bodes well for Bookings into 2009.”

About BIOREM Inc.
BIOREM® manufactures Biosorbens® biofilter media and is a leading supplier of biofilters for air pollution control in municipal and industrial applications, including BIOCUBE® modular units and Mytilus® biotrickling filters. With over 500 installed systems and over a decade of experience, the Company's products are the technology of choice for odor control at waste water treatment plants across North America. Additional information on BIOREM® is also available at our web site at http://www.biorem.biz/.

For further information, please contact:
Ed Corbett, Chief Financial Officer
BIOREM Technologies Inc.
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Tel:  (519) 767-9100 x275

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 in no way passed upon the merits of the proposed transaction and 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 http://www.sedar.com/

Non-GAAP Measures
“EBITDA”, “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.

EBITDA is used to denote earnings (loss) from operations and represents earnings before interest, income taxes, depreciation and amortization. EBITDA should not be construed as a substitute for net income determined in accordance with GAAP. This measure is important to the Company since it is used by potential investors and lenders to evaluate the ongoing cash generating capability of the Company and thus the amounts they are willing to invest and lend to the Company.

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.