BIOREM Reports $15.9 million Revenue and $0.04 EPS

GUELPH, ON, April 4, 2017

FINANCIAL HIGHLIGHTS:

in '000's except earnings per share
		Three-months ended		Twelve -months ended
		December 31		December 31 ARIVA.DE Börsen-Geflüster Kurse Biorem 1,45 $ +5,07%
		2016	2015	2016	2015
Revenue		4,759	3,311	15,896	16,880
Gross profit		1,090	1,300	4,107	5,995
Operating expenses		1,001	1,062	3,282	3,797
Ebitda*		(37)	266	723	2,244
Net earnings		61	125	547	1,689
EPS - basic		0.00	0.02	0.04	0.13
EPS - fully diluted		0.00	0.01	0.02	0.06
* Earnings before interest, taxes and amortization, a non IFRS financial measure

TWELVE MONTHS ENDED DECEMBER 31, 2016

For the twelve months ended December 31, 2016 revenue totaled $15.9 compared to $16.9 million for the same twelve months in 2015. Net earnings for the year were $547,000 compared to net earnings of $2.2 million in 2015. Earnings per share for the year were $0.04 basic and $0.02 fully diluted against $0.13 earnings per share reported in 2015.

Gross profit was $4,107,000 for the year, a 31% decrease from gross profit of $5,995,000 for the year-ended December 31, 2015.

Total operating expenses for the year were $3,282,000 compared to $3,797,000 for the year ended December 31, 2015. The decrease in operating expenses was attributable to lower general and administrative costs, particularly bad debts expenses.

Operating activities for the year used $778,000 of cash compared to $2.1 million provided by operating activities in 2015. A reduction in restricted cash and accounts receivable provided $605,000 of cash. An increase in accounts payable and unearned revenue contributed a further $2,558,000 in cash from operating activities. These operating sources of cash were offset by cash used to fund an increase in accounts receivable of $4,474,000 and a decrease in accrued liabilities of $441,000.

During the year the Company repaid $885,000 of outstanding long-term debt and in January of 2017 all of Company's outstanding convertible debentures were converted to common shares leaving the Company debt free.

"Management looks forward to beginning the next phase of the Corporations development" said Derek S. Webb, President and CEO. "A strong backlog, healthy bidding activity and a number of exciting new products under development provide us with the underpinnings for growth in 2017."

"We are particularly excited about working with our new strategic investor, Tus Holdings, in a variety of new growth initiatives. The Tus family of companies have a large number of water, waste water, solid waste and organic processing facilities across Asia and have the skills and experience to help Biorem expand into these new areas. A number of new initiatives are underway with results expected to begin to be realized within the coming quarters. All in all a very exciting period for our Company."

Three Months ended December 31, 2016

Revenue for the three month period ended December 31, 2016 was up 18.9% from the previous quarter to $4,759,000 and 43.7% or $1.4 million above revenues reported in the same period in the prior year.

Gross profit in Q4 was $1,090,000, comparable to the $1,020,000 recorded in the third quarter of 2016 and $210,000 below the gross profit of the 4^th quarter of 2015. Total operating expenses (net of other income) for the quarter were $1,001,000, a 5.7% decrease from the operating expenses of $1,062,000 incurred during the fourth quarter of 2015.

Ebitda for the quarter was $266,000 compared to an ebitda of $92,000 for the fourth quarter of 2015.

Net earnings for the quarter were $61,000 compared to net earnings of $125,000 in the fourth quarter of 2015.

Total bookings for the quarter were $6.5 million and the Company ended the year with an order backlog of $17.1 million.

About BIOREM Inc.

BIOREM is a leading clean technology company that designs, manufactures and distributes a comprehensive line of high-efficiency air emissions control systems used to eliminate odors, volatile organic compounds (VOCs), and hazardous air pollutants (HAPs). With sales and manufacturing offices across the continent, a dedicated research facility, a worldwide sales representative network and more than 900 installed systems worldwide, BIOREM offers state-of-the-art technology-based products and peace of mind for municipalities, industrial companies and their surrounding communities. Additional information on Biorem is available on our website at www.biorem.biz.

SOURCE Biorem Inc.