VG Energy to Launch First Commercial Product, LipidMax™ for Palm and Algae Oil Production

San Marino, Calif., Jun 20, 2012 – Viral Genetics, through its majority owned subsidiary VG Energy, is now verifying the chemical activity in industrial scale batches of LipidMax™ in response to demand for the product from research institutes and from industry.

LipidMax, the first product marketed by VG Energy, is a lipid enhancement compound for use in the production of oils from algae and other plants or plant-like organisms and is based on the Company’s exclusively licensed Metabolic Disruption Technology (MDT). VG Energy is launching LipidMax in response to unsolicited demand for MDT compounds from algae oil producers after it announced testing results during the preceding year.

Separately, VG Energy also reports that LipidMax has shown in an initial internal study to potentially increase the amount of extracted palm oil when applied to raw palm fruit. The enormous market for palm oil growers is heavily concentrated in Southeast Asia and this has led the Company to commence the formation of an operating subsidiary to be called VG Energy (Asia) Sdn Bhd. Its objectives are to explore the possible applications of LipidMax™ in the palm oil industry and act as the distribution arm for VG Energy, Inc. The global palm oil industry delivered more than 160 million metric tons of product last year, at $895/ton representing more than $140 billion annually.

The product release testing is predominantly focused on verifying that the chemical activity of industrial-scale batches of LipidMax from the manufacturers identified by VG Energy is comparable to the smaller, laboratory-sized batches used in testing. Once product release testing is complete, VG Energy will order larger quantities from its final manufacturer(s) and begin to deliver samples to prospective buyers for their own field-testing which it anticipates will lead to commercial orders thereafter.

“We thought it prudent to engage a manufacturing facility to be able to secure quick delivery and access to LipidMax. We believe this marks one of the most exciting milestones in Viral Genetics’ and VG Energy’s history representing the nearest term potential to generate first time revenues,” stated Haig Keledjian, President of VG Energy and Viral Genetics.

VG Energy’s impetus to begin contract manufacture of the LipidMax product is the direct result of demand from industry and research institutes after review of the results of both internal and external studies showing LipidMax’s ability to substantially increase the amount of lipids from algae, seeds, yeast and potential future markets in other edible oils such as palm oil.

Palm oil is an edible oil derived from the fruit of the oil palm plant and is found in foods such as ice cream, cookies, peanut butter, pies, power bars, baked goods and snacks. It is one of the leading cooking oil products in the world, especially in Southeast Asia. It can also be found in personal care products such as soaps, shampoos, cosmetics, skin care. Palm oil, like other vegetable oils, can be used to create biodiesel as either a simple, processed palm oil mixed with petroleum-based diesel, or processed through transesterification to create a palm oil methyl ester blend, which meets the international EN 14214 specification.

Source: VG Energy /Viral Genetics, Inc.