Certified Organics Secures S Australian Contract

Media Release

15 May 2007

Certified Organics Secures South Australian Contract

Statement made by David Warrick, Managing Director, CER Group Limited

* 500,000 contract from South Australian Government

* Repeat order demonstrates confidence in unique pine extract-based seed killer

* Builds on growing momentum across CER Group

The CER Group Ltd (CER) has today announced that its Certified Organics business has secured a $500,000 contract with the South Australian Government for the provision of its unique pine extract-based BioSeed Eradicator herbicide.

The contract is a continuation of the deal struck with the South Australian Government in 2006, which saw total sales that eventually topped $1m. The organic herbicide is being used by South Australia to control the aggressive pest plant branched broomrape.

Certified Organics’ BioSeed Eradicator is based on a patented pine extract and can kill branched broomrape seeds which are buried underneath the soil. Branched broomrape is considered to be one of the world’s most devastating weeds. It is a true parasite, with no ability to generate its own food supply; instead it survives by sucking nutrients out of a host plant. This action leads to devastating levels of crop loss.

Unlike heavy chemicals, Certified Organics’ BioSeed Eradicator does not harm earthworms or soil microbial life and breaks down into a naturally occurring oxide within days of application.

The contract builds on a series of recent successes for the CER Group, including continued growth momentum in Certified Organics’ sister business, New Zealand Nature.

The CER Group recently announced a Share Purchase Plan for current shareholders, which aims to raise up to NZ$3.5m. The capital raised will be used to further fuel the rapid development and growth of the CER Group.

CER also recently declared its first annual operating profit and has appointed Mr Robin Levison to its board to strengthen its capabilities for appraisal and integration of selected potential acquisition opportunities.

CER is in excellent shape, with strong momentum in both of its businesses. The South Australia contract is yet another demonstration of the company’s excellent momentum, which has been recognised by the market through a 30% increase in CER’s share price since the New Year.

ENDS

© Scoop Media