VG Energy to Launch First Commercial Product, LipidMax™ for Palm and Algae Oil Production

Posted: June 20, 2012 at 5:13 pm

SAN MARINO, Calif.--(BUSINESS WIRE)--

Viral Genetics (VRAL), through its majority owned subsidiary VG Energy, is now verifying the chemical activity in industrial scale batches of LipidMax in response to demand for the product from research institutes and from industry. LipidMax, the first product marketed by VG Energy, is a lipid enhancement compound for use in the production of oils from algae and other plants or plant-like organisms and is based on the Companys exclusively licensed Metabolic Disruption Technology (MDT). VG Energy is launching LipidMax in response to unsolicited demand for MDT compounds from algae oil producers after it announced testing results during the preceding year.

Separately, VG Energy also reports that LipidMax has shown in an initial internal study to potentially increase the amount of extracted palm oil when applied to raw palm fruit. The enormous market for palm oil growers is heavily concentrated in Southeast Asia and this has led the Company to commence the formation of an operating subsidiary to be called VG Energy (Asia) Sdn Bhd. Its objectives are to explore the possible applications of LipidMax in the palm oil industry and act as the distribution arm for VG Energy, Inc. The global palm oil industry delivered more than 160 million metric tons of product last year, at $895/ton representing more than $140 billion annually.

The product release testing is predominantly focused on verifying that the chemical activity of industrial-scale batches of LipidMax from the manufacturers identified by VG Energy is comparable to the smaller, laboratory-sized batches used in testing. Once product release testing is complete, VG Energy will order larger quantities from its final manufacturer(s) and begin to deliver samples to prospective buyers for their own field-testing which it anticipates will lead to commercial orders thereafter.

We thought it prudent to engage a manufacturing facility to be able to secure quick delivery and access to LipidMax. We believe this marks one of the most exciting milestones in Viral Genetics and VG Energys history representing the nearest term potential to generate first time revenues, stated Haig Keledjian, President of VG Energy and Viral Genetics.

VG Energys impetus to begin contract manufacture of the LipidMax product is the direct result of demand from industry and research institutes after review of the results of both internal and external studies showing LipidMaxs ability to substantially increase the amount of lipids from algae, seeds, yeast and potential future markets in other edible oils such as palm oil.

Palm oil is an edible oil derived from the fruit of the oil palm plant and is found in foods such as ice cream, cookies, peanut butter, pies, power bars, baked goods and snacks. It is one of the leading cooking oil products in the world, especially in Southeast Asia. It can also be found in personal care products such as soaps, shampoos, cosmetics, skin care. Palm oil, like other vegetable oils, can be used to create biodiesel as either a simple, processed palm oil mixed with petroleum-based diesel, or processed through transesterification to create a palm oil methyl ester blend, which meets the international EN 14214 specification.

About VG Energy

VG Energy, Inc. is an alternative energy and agricultural biotech company that is a majority-owned subsidiary of Viral Genetics, Inc., a biotechnology company researching new treatments and methods of detection for diseases including cancer, HIV/AIDS and others. Using its Metabolic Disruption Technology (MDT), Viral Genetics cancer research led to discoveries with major consequences in a wide variety of other industries, including biofuel and vegetable oils. VG Energy holds the exclusive worldwide license to the MDT patent rights for use in the increase of production of various plant-derived oils from algae and seeds. These pivotal discoveries promise to allow the biofuel industry to overcome its major obstacle in the area of production efficiency: namely, an increase in production yields leading to feasible economic returns on investment, allowing renewable biodiesel to be competitive with fossil fuels. For more information, please visit http://www.vgenergy.net.

About Viral Genetics, Inc.

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VG Energy to Launch First Commercial Product, LipidMax™ for Palm and Algae Oil Production

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