First Quarter 2009 Shareholder Update
Dec 11, 2008 12:20:00 PM

Dear Shareholder,

Few investors need to be reminded of the global recession which has made a significant negative impact on their investment portfolios. Our company's stock price has not been immune to price depreciation along with the rest of the packaging industry; however the future is very bright both internally and industry-wide. Despite an overall depressed economic climate, the demand for earth-friendly packaging is growing at a 22% annual rate, according to a recent study by Pira International.

Fortunately for Biopack Environmental Solutions, current sales are almost exclusively in the fresh food sector, a recession-resistant, if not recession-proof, industry. Customer acceptance of earth-friendly packaging products is especially entrenched in Europe, where the vast majority of our sales occur. Our European "Roots Biopack" brand-name has become synonymous with the finest quality in biodegradable packaging.

European Sales

Biopack Environmental currently sells product under the Roots Biopack brand name in 14 different European countries, including the U.K, France and Germany. Some of Biopack's current clients are some of the largest European grocers, such as Sainsbury's and Tesco's. Recently, Biopack secured a very large order from Sainsbury's in the U.K., which is one of Europe's biggest markets for biodegradable packaging.

Biopack's products were showcased recently at the 2009 Fruit Logistica Trade Show in Berlin, Germany. Our unique vegetable and meat trays generated a tremendous amount of new leads and enquiries from all over Europe and Asia, not-to-mention numerous purchase orders from new and existing clients. Overall, the trade show was a great success and has further enhanced our reputation as the high quality benchmark in the biopackaging space.

Entry into Non-Food Packaging Sector

Biopack is diversifying its product offerings into non-food packaging and has been engaged in advanced negotiations with a European industrial giant to provide biodegradable packaging for a popular retail product. It is hoped to announce a definitive agreement within 2009 for the test marketing and potential mass production to follow.

Sufficed to say, we are taking advantage of our increasing economies of scale and the increase in demand for all packaging products which are environmentally friendly to expand our product offerings. As well, price sensitivity is decreasing in the packaging industry as the social conscience starts to outweigh the lower costs of polluting and irresponsible packaging products.

Global Expansion

Biopack Environmental has embarked on a strategy to expand our global reach outside of our traditional European stronghold to North America and Asia. Japan is a particularly attractive market for biodegradable packaging, since the country has an acute lack of suitable landfill capacity and has positive legislative support for our industry as a whole. Gaining a foothold in the Japanese market is a key company goal in 2009 and the company has engaged a consulting group to investigate entry into this lucrative market.

North America

North America has finally moved towards legislation supporting the use of bio-degradable packaging, notably on the West Coast. Cities such as San Francisco and Seattle have banned the use of Styrofoam for "to-go" containers, which is widely believed to be the beginning of a national trend.

Although market acceptance of earth-friendly packaging in North America is many years behind Europe and Japan, management believes the time is now to capitalize on this emerging opportunity. Our team believes entry into North America is timely since we enjoy scale advantages and quality superiority over existing domestic competition. Currently, the North American biopackaging market is fragmented and is in its early stage, leaving the door wide-open for Biopack Environmental to establish and consolidate market share.

Biopack Environmental will host a booth at the up-coming United Fresh Trade show in Las Vegas on April 22-24 (http://www.unitedfreshshows.com). Biopack looks forward to its first North American trade show as an excellent opportunity to show our products to some of the countries largest produce retailers and distributors.

The Future is Green

Despite the macro-challenges faced by any industrial company in the current economic environment, Biopack does not believe it appropriate to remain passive while opportunity exists to take our company to the next level. Demand for our products in our traditional European market has continued to grow and we believe that we can duplicate this successful model in North America and Asia. Our management team is convinced that the growing trend to accept earth-friendly products is irreversible and the time to capitalize on this global opportunity can not be delayed.

It is our sincere hope that as the global equity markets improve, we will simultaneously deliver the sales growth and fundamental improvements that will result in a significantly higher stock price.

Sincerely,
Biopack Environmental Solutions
Gerald Lau
CEO

Safe Harbor

All statements other than statements of historical fact that are included in this update and that mention activities, events or developments that we believe may occur in the future are forward-looking statements. The use of words such as "anticipate," "continue," "estimate," "expect," "may," "project," "should," "believe" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Risks that might cause actual results to differ from these projections include, but are not limited to, those discussed in Biopack's most recent Annual Report on Form 10-KSB and other documents filed by it from time to time with the U.S. Securities and Exchange Commission.