California-based VG Energy contracts Rhode Island alternative energy producer BioProcess Algae to verify lab results on large scale for development of commercial biofuel production

Liling Tan

SAN MARINO, California , March 25, 2011 (PRNewswire) – VG Energy, a subsidiary of Viral Genetics, Inc. (Pink Sheets: VRAL), announced today that it has retained alternative energy producer BioProcess Algae, LLC to verify lab results on a large scale for the development of commercial production of its potential biofuel process. VG Energy has developed proprietary technology, with results reproduced multiple times from test-tube to small-pond studies, which holds promise in producing algal biofuel on a commercial scale, at prices competitive with or better than current oil prices.

"VG Energy's technology has shown great promise as a viable and cost-effective additive for alternative energy sources," said Haig Keledjian, CEO of VG Energy and Viral Genetics. "We are thrilled to be working with BioProcess Algae to take the next steps and move from the laboratory to a viable production setting."

The agreement came together quickly and was facilitated by VG Energy SVP Monica Ord. "I have Richard Branson and Mike Willis from Virgin Green to thank for the introduction to Green Plains Renewable Energy (GPRE) and BioProcess Algae," said Ord. "We have repeated our proof of principle research studies multiple times, internally and through Texas A&M, which have clearly demonstrated the effectiveness of the compound on a small scale. BioProcess Algae gives us the ability to move quickly into full autotrophic, mixotrophic and heterotrophic scale-up studies, and we are excited to begin."

A process increasing lipid production in algae cells and considerably improving their rate of recyclability has been discovered by VG Energy and its lead researcher, Dr. M. Karen Newell Rogers, the Raleigh R. White, Jr. Endowed Professor of Surgical Research at Texas A&M Health Sciences Center and Scott and White Hospital in Temple, Texas. A recent report by biofuels expert John Sheehan models several current production techniques, with their productivity enhanced by VG Energy's process, with the results showing potential for a cost-effective energy source. A direct result of work undertaken by Dr. Newell Rogers for cancer treatment, this process, Metabolic Disruption Technology (MDT), appears to act as a long-sought lipid trigger to cause algae cells to store increased fat, making them more productive as an energy source. When the process was applied to algae cells in the lab, extractable lipid, or fat, production was increased by a minimum of 300%. Additionally, the process enables cells to release fats outside the cell walls, making much of the algae recyclable and increases its viability as an alternative energy source.

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 www.vgenergy.net.

About BioProcess Algae, LLC

BioProcess Algae, LLC (BPA) was formed in 2008 to commercialize algae production systems for next-generation biofuels and animal feeds. BPA's technology and manufacturing headquarters are based in Portsmouth, RI and demonstration efforts are integrated with a 65 MGPY ethanol plant owned by Green Plains Renewable Energy in Shenandoah, IA. BPA is a joint venture among Clarcor, BioProcessH2O LLC, Green Plains Renewable Energy, Inc., and NTR plc. More information can be found at www.bioprocessalgae.com.

About Viral Genetics, Inc.

San Marino, California-based Viral Genetics discovers drug therapies. Founded in 1994, the biotech company is researching treatments for HIV/AIDS, LymeDisease, Strep, Staph and drug resistant tumors. A majority-owned subsidiary, VG Energy (www.vgenergy.net), is dedicated to exploring biofuel and agricultural applications for one of the technologies in its licensed portfolio. For more information, visit www.viralgenetics.com.

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