Neptune to sell first batch of insect-based aquafeed

Neptune Industries, Inc., a world leader in the development of sustainable solutions for aquaculture, headquartered here, said today it has received a Letter of Intent to purchase over 40 tons per month of its Ento-Protein^(TM), an insect-based alternative to fishmeal, from Zeigler Bros, Inc. of Gardners, PA.

Ento-Protein^(TM) is a high quality sustainable protein derived from insects, which is intended to be a replacement for the rapidly depleting fishmeal made from wild caught feedstock species, for which there is currently a $7 billion worldwide market. Founded in 1935, privately held Ziegler Bros is a leading manufacturer of high quality animal feeds. Ziegler was the first to manufacture feeds for aquaculture in 1955, the first to commercialize a stable form of vitamin C in 1988, and most recently the first developer of aquatic diets for use in biomedical research.

Neptune plans on opening the first of its production facilities in late 2008. Deliveries are expected to begin by the end of this calendar year, following the establishment of pilot operations.

Neptune CEO Ernest D. Papadoyianis characterized the Ziegler LOI as a "major step forward" for achieving product launch of Ento-Protein by the end of this year. He said, "The reception Neptune has received from around the world since introducing the product is extremely encouraging. Several other major feed producers have already requested samples and we expect more letters of intent to be forthcoming."

Papadoyianis said that recently issued guidelines and recommendations by the USDA Panel on organic standards for seafood, "Make me quite optimistic that standards will be promulgated for organic fishmeal. As the 'first mover' in this new product category, we have every reason to believe that Ento-Protein will then qualify for an organic designation."

The company began a research and testing program for Ento-Protein with Mississippi State University in 2007, and recently completed the third stage of validation trials. The company filed a provisional process patent in the Production and Processing of Select Insects into Protein Meal for Fish and Animal Diets in February 2006.

About Neptune Industries

Neptune Industries is a technology company which from inception has been committed to achieving sustainable, eco-friendly aquaculture by innovating and pioneering a "total and comprehensive integrated systems solution" approach to the mission critical challenges facing the Aquaculture Industry today. Dwindling supplies of wild caught stocks used for fishmeal, and the continued environmental damage, escapism, and disease caused by self-polluting net pen systems, have severely restricted Industry growth on a global basis.

Our mission is to utilize our expanding production operations base of all-natural, sustainable farm raised seafood products, as the working platform for the development of innovative, next-generation technologies to dissolve current industry bottlenecks. Further, our commitment is one of systems integration that targets "zero waste." Fish, organic produce, and waste-to-energy systems synergize to form a production model with multi-revenue streams.

Thus far, the Company has applied for patents and has made significant progress in the development of three technology platforms, one of which its calls "Ento-Protein"; the second of which it calls "Aqua-Sphere," and the third of which it calls "Aquaponics." Taken together as components of a whole -- this total integrated system solution approach addresses what the company believes to be THE three critical problems hindering the growth of the Aquaculture industry which will invariably cause it to fall increasingly short of growing world wide demand.

Aqua-Sphere^(TM) is a state-of-the-art scalable, modular, floating closed containment system that is capable of concentrating and removing solid waste, eliminating predation and escapement, utilizing alternative energy for remote applications, and isolating crop from the environment.

Aquaponics is the existing practice of integrating fish and plant production through soil-less culture (hydroponics) using the waste effluent as fertilizer. Neptune has advanced the methodology through the use of the Aqua-Sphere^(TM). The hydroponic system provides a revenue stream off of the waste component of the fish production through very high quality organic herbs and vegetables. In addition, as another part of the water treatment and Aquaponics system a derivative product of algae is grown in floating socks, which is 30x more productive than corn on a per acre basis, for the production of bio-diesel.

Finally to validate and test Neptune's solutions and technologies, the Company operates a sustainable fish farming facility in Florida City, Florida called Blue Heron Aqua Farms, Inc. Blue Heron Aqua Farms currently is one of the leading producers of hybrid striped bass, which it markets nationally and internationally as Everglades Striped Bass^(TM).