Salcon to Invest $7 Million in IBR Technology

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FOR IMMEDIATE RELEASE

Salcon to Invest $7 Million in IBR Technology

CANADA, BRITISH COLUMBIA, VANCOUVER, Oct. 11 -/E-Wire/-- International Bio Recovery Corp. ("IBR") is pleased to announce that it has agreed to enter into an Asian Joint Venture ("AJV") Partnership with Salcon Biotechnologies Pte. Ltd.("Salcon"), a subsidiary of Salcon Limited, to promote business using the IBR technology throughout Asia.

IBR and Salcon have agreed to the following terms, which outline the basis for the AJV Partnership Agreement.

In addition to a recent investment of CAD$750,000, Salcon will invest CAD$7.0 Million in IBR in the following manner:

Â¨ $2 Million equity investment in IBR Corp. at a price of $1.25 per share for 1,600,000 shares. Â¨ $2 Million investment in cumulative convertible preferred shares. Â¨ $3 Million as Technology License Fees for the Asia region, giving the AJV the full right to sublicense the technology and collect royalties in Asia.

The preferred shares will carry an interest rate of 8% annually, net of withholding taxes. The preferred shares may be converted at Salcon's option after two years from the date of issue at $2.00 per share or at a 15% discount to market price at that time, whichever is lower. Payment for the cumulative convertible preferred shares will be done within 6 months of the date of the Agreement. Other amounts are payable when final documents are signed, expected in 6-8 weeks. These investments are subject to a 5% commission.

The Asian Joint Venture will be incorporated in Singapore and will be owned 25% by IBR and 75% by Salcon. For its 25% share in the AJV, IBR will invest a proportionate share estimated at CAD$1.25 Million in staggered payments to build the first Joint Venture operating IBR plant in Singapore next year.

Upon execution of the AJV agreement, the Master License Agreement covering Southeast Asia between IBR and Salcon, recently extended and announced September 25th, 2001, will be rescinded. The AJV will have the exclusive rights to construct, own and operate and/or license or sublicense IBR plants in all of Asia. This includes countries of Southeast Asia, China and Japan. The Agreement does not include Australia and New Zealand.

IBR currently has Licensing Agreements in effect with Pt. Biotama Recovery Indonesia ("PBRI") and Canada Pacific Sunshine Technology Co. Ltd. ("CPST") in China. These agreements remain in effect, however, PBRI has been in discussions with IBR for the purchase of the IBR technology for the exclusive territories of the Indonesian islands of Java and Bali. This territory is excluded from the AJV, however, should an agreement not materialize between IBR and PBRI within 90 days of the Memorandum of Understanding, IBR shall refrain from further discussions with PBRI on the sale of the IBR technology. The AJV will then assume responsibilities of IBR, as outlined in that License Agreement, as well as the License Agreement with CPST.

As a condition to the investments into IBR by Salcon, IBR has agreed to provide Salcon details of plans to make its North Vancouver plant profitable including any capital investment next year.

"During my association with the Salcon engineering group, I have been impressed by their commitment to the IBR technology as well as their sound business judgment. This fact coupled with their extensive office network and experience in undertaking major projects in Asia can only encourage a roll out of IBR's technology in Asia. The experience and wisdom of Salcon's Chairman Chan Lok Lim is a welcome addition to IBR's Board of Directors", commented Frank Dixon, IBR President and CEO.

Salcon Biotechnologies is a subsidiary of Salcon Limited, a multi-million dollar engineering group headquartered in Singapore with extensive experience in waste and water treatment plants, industrial and agro-industrial engineering as well as power generation and distribution throughout Asia and Europe.

International Bio Recovery Corporation (www.ibrcorp.com) is setting the global standard for the management of organic waste and the development of commercial biological products for conventional agriculture to increase crop yields, reduce plants' susceptibility to disease, and dramatically reduce the world's dependence on agricultural chemicals.

IBR is a publicly listed company trading on the Canadian Venture Exchange under the symbol IBR.

On behalf of the Board,

Frank Dixon, President & CEO

International Bio Recovery Corporation

http://www.ibrcorp.com

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