Planet Polymer Technologies Receives Positive Test Results From China After Completion Of A Two-Year Field Trial Study on Crop Yield Production

Business Wire, Sept 8, 1997

SAN DIEGO--(BUSINESS WIRE)--Sept. 8, 1997--Planet Polymer Technologies Inc. (NASDAQ:POLY) Monday announced that it has received positive test results from Chinese officials after the completion of a two-year study involving EnviroPlastic CRT, a coating for urea fertilizer developed by Planet Polymer.

Tests conducted by the Chinese government indicate that the yield of certain crops was improved approximately 20 percent with the application of EnviroPlastic CRT-coated urea to the crops. The two-year crop yield evaluation compared the performance of rice and corn yields when EnviroPlastic CRT-coated urea and conventional urea were applied to the crops.

According to professor Xinming Zhu, director of the Soil and Fertilizer Institute at the Sichuan Academy of Agricultural Sciences, "These test results are the most dramatic I have ever seen in 27 years of testing."

The Chinese government has a national priority to improve the efficiency of urea by 9 percent within five years, and the results of this field trial study significantly exceed that target.

China is challenged with a significant population, arable land availability and poor soil conditions. As a result, Planet Polymer believes that EnviroPlastic CRT should be of particular interest to China due to its potential to increase crop yield and improve fertilizer efficiency.

In August, representatives from Planet Polymer traveled to China to Sichuan Province, the largest agricultural province in China, to discuss the study and its results with various government officials, including directors from the Sichuan Chemical and Industry Department and the Sichuan Agricultural Department.

"Better utilization of nitrogen-based fertilizers is a high priority for the Chinese government," said Dr. Robert J. Petcavich, chief executive officer and president of Planet Polymer Technologies Inc.

Business discussions regarding the economics, manufacturing and commercialization of the time-release fertilizer in China are anticipated to occur in 1998. In addition, further tests will be conducted.

EnviroPlastic CRT was designed for coating urea granules to produce a urea fertilizer that is insoluble in water, biodegradable in soil and allows the fertilizer to be controlled released over a period of up to 120 days. The product was developed by Planet Polymer for Agrium Inc.

"We're excited about the opportunity although we have several milestones to meet, including matching economics to test results," said a representative from Agrium Inc.

Agrium Inc. has headquarters in Calgary, Alberta, Canada, and is a major producer and marketer of fertilizer and related products and services to the global agricultural industry. Agrium is the second-largest retailer of agricultural inputs and crop production services in the United States and continues to establish itself in the international marketplace.

Planet Polymer Technologies Inc. is a specialty chemical company that designs and develops engineered polymer materials that provide environmentally superior attributes and solutions for products designed for the personal hygiene, agrotechnology and medical disposable markets. -0-

Except for the historical information contained herein, this news release contains forward-looking statements which involve risks and uncertainties, including the risk that the company and the Chinese government will be unable to negotiate future business opportunities, and the risk of acceptance and pricing of new products and general economic and political conditions as they affect the customers of Planet Polymer, as well as the other risks detailed from time to time in Planet Polymer's Securities and Exchange Commission reports (including the report on Form 10-KSB for the year ended December 1996).

CONTACT: Planet Polymer Technologies, San Diego

Rebecca Deen, 619/549-5130