LONDON, July 27, 2004 (PRIMEZONE) -- Humatech, Inc. (OTCBB:HUMT) today announced that its U. K. distributor, Humatech Ltd., has won an exclusive three-year agreement to provide agricultural humate products to J & H Bunn Ltd, a major U.K. fertilizer supply company in business nearly 200 years. Product shipment from Humatech, Inc. commences in September.
"Earlier this month, we were able to announce a five year agreement with the Akey nutrition company, which last year had sales of $200 million, to further penetrate the animal feed market with our Promax animal feed supplement," said Humatech's President & CEO, David Williams. "Today, we are reporting that Humatech Ltd., our distributor in England, has been awarded the contract to be the exclusive supplier of humate products to J & H Bunn Ltd., which is well known as an innovative leader in its market, with revenues last year of $185 million. During that period, its accomplished sales team supplied nearly 900,000 tons of fertilizer blends to farmers throughout the U.K.
"Changing agricultural policies, and continued depletion of U.K. soil fertility, prompted Bunn's scientists two years ago to evaluate a range of humate products and applications," said Humatech Ltd. Managing Director David Caney. "They concluded the time was right for it to begin including humates in its fertilizer blends, and determined the most effective and economical humate products evaluated during extensive studies were those supplied by Humatech. In return for our assistance with technical and scientific matters tied to the marketing of Humatech products, Bunn will purchase all its humate products exclusively from Humatech Ltd., not only for the initial three year period, but thereafter for as long as we continue to supply the company with crop consulting services and products," Caney said. "It is a major marketing victory for us and for Humatech."
In the first year of the agreement, Bunn plans to include Humatech products in its fertilizer blends prepared for local root crop customers, especially potato and sugar beet customers. It currently supplies approximately 100,000 tons of fertilizer to its local potato customers and some 200,000 tons to its local sugar beet customers. Normal rates of inclusion of Agri-Hume are 10% to 20% of the fertilizer blend, depending on the specifics of the crop being grown.
The sales and marketing campaign has already begun, and delivery of granulated AgriHume beginning in September coincides with preparation for autumn application to potato and beet fields.
Caney said early response to the campaign is particularly encouraging. "The chief marketing executive has so far realized a 50% acceptance rate of all customers he has approached with the new humate blends," he said. Caney said Bunn also produces some 40,000 tons of time-released liquid fertilizers, into which the company will be including powdered AgriHume, and also intends to make use of Humatech's Maximize and Aqua-F liquid agricultural products.
"This is the second major milestone for us in three weeks," said Humatech CEO David Williams. "The validation of Bunn, one of the foremost names in agriculture in the U.K., is yet another major endorsement, beyond that of Akey, of the real value of our products in solving soil fertility, crop production, food quality, and environmental problems both home and abroad.
"Shareholders can anticipate future quarterly filings to reflect steadily growing revenues coming from both these agreements," the CEO concluded.
About Humatech Inc.
HumaTech, Inc. manufactures all natural nutrient solutions for plants and animals, produced from a proprietary process described as "Iso-Molecular" technology. The company markets Promax(r) to the animal feed industry, and also has an extensive agricultural product line, which it markets in the U.S.A and Europe, as well as its Organic Advantage(r) retail product line, which consists of 12 organic based liquid products ranging in size from a 4oz. Planting Solution, to a 2 1/2 gallon Lawn Food. Additional information regarding the company, and its product lines, is available at www.humatech.com .
Certain information contained in this news release may include 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. While these statements are made to convey the company's progress, business opportunities and growth prospects, readers are cautioned that such forward looking statements represent management's opinion. Actual company results may differ materially from those described. The company's operations and business prospects are always subject to risk and uncertainties. A more extensive listing of risks and factors that may affect the business prospects of the company and cause actual results to differ materially from those described in the forward-looking statements can be found in the reports and other documents filed by the company with the Securities and Exchange Commission.