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EXHIBIT 99.2
Biomune Systems, Inc. Announces the Completion of Transfer of Certain Assets by
Donlar Corporation in Exchange for Biomune Common Stock
Just Released Results Show That Biomune's AmiSorb(R) and Magnet(TM) Products
Reduce Ground Water Contamination
BEDFORD PARK, Ill., Nov. 6/PRNewswire/ - Biomune Systems, Inc. announced that
Donlar Corporation transferred its crop nutrition management, oil field
production and pharmaceutical business, and research and development to Biomune
Systems, Inc. on November 3, 2000, in addition to approximately $2 million in
cash. Arise Research and Discovery, Inc., an EPA approved and licensed
international agriculture and environmental laboratory, located in Martinsville,
IL reported on November 3, 2000 test results showing that Biomune's Crop
Nutrition Management beta protein products, AmiSorb(R) and Magnet(TM), reduces
nitrate and phosphate levels in ground water due to fertilizer leaching.
Pursuant to the terms of an Asset Purchase Agreement dated August 8, 2000, as
amended, Biomune acquired the crop nutrition management sales, oil field sales,
pharmaceutical and research and development activities of Donlar Corporation, an
Illinois corporation, and approximately $2 million in cash in exchange for 96%
of the total issued and outstanding common stock of Biomune. Biomune also
acquired a non-exclusive license to use certain patented technology of Donlar in
consideration of a royalty payment equal to 10% of sales of products or
technology utilizing those patents. No liabilities of Donlar were be assumed by
or assigned to Biomune.
Current Biomune shareholders now own 4% of the common stock of Biomune on a
post-transaction basis. Donlar agrees to hold its 96% of Biomune shares for at
least one year. Consequently, the current Biomune shareholders hold all shares
in the public float.
The directors of Biomune resigned in favor of Donlar nominees. Biomune has cash
of approximately $2 million and has net tangible assets of $3,000,000. Biomune
operations are being be relocated to Peru, Illinois, with management and
accounting services provided by Donlar under a management agreement. Current
Biomune employees have been terminated, with the exception of its past President
and CEO, Michael G. Acton, who will continue to provide services to Biomune and
Donlar under a one-year consulting agreement.
The Biomune Board of Directors now consists of the Donlar Board of Directors
consisting of:
Larry P. Koskan, President, CEO and Chairman of the Board. Mr. Koskan founded
Donlar Corporation and previously was a research executive with Nalco Chemical
Company.
Dr. Robert G. Martin, the principal owner of Carolina Eye Associates, a
15-office ophthalmic practice. He is Chairman of the Board of the Society for
Excellence in Eye Care and past president of the American Board of Eye Surgery.
Mr. Robert W. Cooper, Sr. is a principal of Cooper-Pruyn Architects, Ltd and
President and CEO of R. W. Cooper and Associates, a Chicago based company
providing engineering and management services to the food processing, chemical
and building materials industries.
Mr. Thomas M. Dorr is President and CEO of Pine Grove Farms, a large farm and
agricultural business in Iowa. He has served on the Iowa Board of Regents and
recently as a Director on the Federal Reserve Board in Chicago.
Mr. Dean Kleckner served as the President of the American Farm Bureau
Federation.
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"We are delighted to be doing this transaction for all of our shareholders,"
said Larry Koskan, CEO and President of Biomune. "The Biomune shareholders will
constitute the public float as Donlar has agreed to hold its shares for a year.
This is an excellent opportunity for Biomune shareholders to realize the
inherent value of our technologies." "According to the University of Illinois,
over 90% of the nitrates measured in Illinois rivers come from the use of
nitrogen based fertilizers in agriculture. Ground water that flows into Illinois
rivers averages between 35 - 70 ppm of nitrates. Many Illinois rivers exceed the
EPA's maximum legal concentration for drinking water of 10 ppm and this is a
major health problem."
"Dr. Roy Stephen of Arise Research and Discovery, Inc. reports that when
Biomune's patented beta protein technology is applied with fertilizers, it
reduces both nitrate and phosphate leaching into ground water by at least 10%.
Because AmiSorb(R) and Magnet(TM) more efficiently facilitate the uptake of
nutrients into plants, less nitrates are lost to the ground water. In addition,
Dr. Stephen reports that AmiSorb(R) also increased the yields of corn, alfalfa
and soybeans by 7 - 15%."
Donlar Corporation, founded in 1990 and based in Bedford Park, Illinois, is a
diversified biotech and biopolymer company that has developed a wide range of
patented protein products for use in industrial, agricultural, consumer and
pharmaceutical markets. Donlar was the recipient of the EPA's first Presidential
Green Chemistry Challenge Award for its work in the development of
environmentally responsible products and manufacturing processes.
(www.donlar.com)
Biomune Systems, Inc., a Nevada corporation, with its wholly owned subsidiary,
Optim Nutrition, Inc., is engaged in the research, development, distribution and
sale of biologic pharmaceutical products, nutraceutical and medical food
products and food supplements based on an exclusively licensed, patented whey
protein technology. (www.optimnutrition.com)
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Actual results could differ materially from those
projected in the forward-looking statements, which involve a number of risks and
uncertainties, including reliance upon the company's independent distributor
network, government regulation of products, manufacturing and marketing, and
risks associated with international expansion. The contents of this release
should be considered in conjunction with the warnings and cautionary statements
contained in Biomune's most recent filings with the Securities and Exchange
Commission on Forms 10-QSB and 10KSB and current reports on Form 8K.
SOURCE Donlar Corporation
