Biofarm Inc. Announces Significant Negotiations in Its Insurance Group Operations.

LONDON--(BUSINESS WIRE)--April 20, 1999--

Keith D. Beekmeyer, President and Chairman of Biofarm Inc. (BIOF) announced today that negotiations have been substantially completed leading to the merger of BIOF's insurance operations into Ian McCall & Company Ltd., a Lloyds' of London insurance brokerage company.

The merged entity will be known as McCalls and will commence its unified operations effective 1st May 1999. It is expected that definitive contracts will be executed prior thereto.

BIOF presently operates three separate businesses: a pharmaceutical group (Biofarm S.A., located in Romania); an aircraft group (Britten-Norman located on the Isle of Wight); and an insurance group (located in London under the former name of Burlington Chamber & James).

The merger of BIOF's insurance group into McCalls is consistent with Mr. Beekmeyer's stated intention to expand the operations of BIOF's insurance group. BIOF estimates that premium income will increase to US$30 - 35 million per annum and that net income of the insurance group will be in excess of US$3 million commencing with the first full year of combined operations.

Mr. Beekmeyer (whose background includes nineteen years' experience in the insurance industry as a Lloyds' broker, underwriter and captive risk manager) will himself oversee the combined insurance operation.

Mr. Beekmeyer stated that it is his intention to create a strong base from which the merged insurance group will be able to expand the range of customers being serviced and the areas of insurance coverage being offered. Additionally, it is also his intention to focus not only upon domestic business but also to expand internationally.

Mr. Beekmeyer also stated that BIOF, which will own 85% of the merged insurance group with the McCalls transaction, is even now in negotiations with international brokerage concerns to acquire additional businesses for the insurance group. He stated that the results of such negotiations would be the subject of separate announcements.

Mr. Beekmeyer concluded by stating that it is his intention to cause the insurance group to contribute not less than US$1 per share in net income to BIOF shareholders in the fiscal year beginning 1st November 1999.

All forwarding statements herein above are qualified in their entry by reference to possible contingencies that are beyond the control of the management of BIOF, including the execution of a definitive contract between BIOF and McCalls. Further press releases will be issued upon the execution of contracts relating to McCalls and other international insurance concerns.