BioNeutral, KRP complete manufacturing and distribution agreement

BioNeutral Group Inc., (OTCBB:BONU) a specialty chemical technology-based life science company, announced today that it completed an agreement with Keystone Research and Pharmaceuticals ("KRP") www.krandp.com for its proprietary formulations for use in the Veterinary, Dental and Cosmetic markets. The Terms are being held confidential.

Under the terms of the agreement BioNeutral will contribute products, knowhow and access to its Chief Scientist Dr. Andy Kielbania to help produce, promote and sell BioNeutral products in the above mentioned markets globally. BioNeutral will use Keystone Industries as its exclusive Manufacturer. KRP will provide free rent at its Germany plant for one year. KRP will give BioNeutral access to its Chief Scientist Larry Steffier and to its distributors and distribution network and include BioNeutral products at tradeshows and feature BioNeutral products in KRP's promotional literature. KRP will be spending at least $100,000 in the first year on equipment, developing production processes, marketing research, sales development and personnel.

Dr. Andy Kielbania, Chief Scientist at BioNeutral, stated: "We are pleased to be working with Keystone Industries. Their excellent track record in manufacturing, innovative technology and knowledge of the market are important attributes to this agreement."