Two senior members of Chertoff Group to provide operational advisory services to BioNeutral Group

Aug 31 2009

BioNeutral Group, Inc. (OTCBB: BONU) has expanded its relationship with the Chertoff Group (Washington, DC). Beginning September 1, 2009, two senior members of the Chertoff Group will provide dedicated strategic and operational advisory services to BioNeutral to enhance the company’s strategic alliances, corporate operations, product testing, regulatory approvals, capital strategies and sales to the public and private sectors.

“It’s exciting working with the Chertoff Group. We believe their collective talent, combined with BioNeutral's world class chemistry, will make a significant difference in saving lives presently lost to infection. We are proud to combine our efforts to help combat communicable diseases and make the hospital and all health care facilities a safer place,” said Stephen J. Browand, President & CEO of BioNeutral Group.

“As some of the principal architects of homeland security policy and doctrine, our team has a good feel for how to examine problems from end-to-end, and how to evaluate technologies that might be brought to bear in solving those problems,” said former Homeland Secretary Chertoff, Co-Founder and Chairman of the Chertoff Group. “By working with investors, private companies, governments and others who want to grow into homeland security markets, either organically or via acquisitions, I think our firm offers a unique value proposition and perspective. Given our deep knowledge of national and international biosecurity requirements in the commercial and government sectors alike, we are uniquely positioned to help BioNeutral in all aspects of the company’s continuing growth.”

Under terms of the Agreement, Chertoff Group Principal Jeffrey W. Runge, MD and Deputy Chief Operating Officer Dr. J. Bennet Waters will devote approximately half their time exclusively to advising BioNeutral. Dr. Runge will serve as Senior Medical Advisor, and Dr. Waters will serve as Senior Operations Advisor. Dr. Runge is formerly the Assistant Secretary of Health Affairs at the Department of Homeland Security (DHS); Dr. Waters is formerly Deputy Assistant Administrator at the Transportation Security Administration and served previously as Chief of Staff of DHS’s Office of Health Affairs and as Counselor to two DHS Deputy Secretaries. In addition to Drs. Runge and Waters, other Chertoff Group principals will provide periodic support to BioNeutral regarding product testing and evaluation; acquisitions and procurement activities across commercial and federal targets; and capital-raising strategies.

“I believe BioNeutral’s technology has the potential to be game-changing,” said Chad Sweet, Co-Founder and Managing Principal at the Chertoff Group. “Based on preliminary data from independent lab testing, we are enthusiastic about the potential to instantly sterilize surfaces, fabric and skin without any known environmental effects. We believe BioNeutral’s formulations have the potential to address several difficult problems facing the Nation, including influenza pandemics, national security threats such as anthrax, and in preventing expensive and dangerous hospital acquired infections.”

Mr. Sweet previously served as the Chief of Staff of DHS and at the CIA. In addition to his expertise in security, he worked for twelve years in finance with Goldman Sachs and Morgan Stanley. At Chertoff Group, Mr. Sweet utilizes his unique background in intelligence, homeland security, and investment banking to advise companies and private equity firms expanding within the defense, aerospace, and security industries.

Other principals at Chertoff Group include General Michael Hayden, former Director of the Central Intelligence and National Security Agencies; former Homeland Security Deputy Secretary Paul Schneider (who previously served as head of acquisitions for the National Security Agency and United States Navy); and former Undersecretaries of Homeland Security Charles Allen and Rear Admiral Jay Cohen.

BioNeutral’s relationship with Dr. Runge and Dr. Waters takes advantage of a unique skill set in homeland security and health care. Dr. Runge was DHS’s first Chief Medical Officer, where he led the reorganization of biodefense operations into a new Office of Health Affairs. Prior to DHS, he was the head of the National Highway Traffic Safety Administration, where he instituted programs that led to the first absolute declines in U.S. motor vehicle deaths in nearly a decade and the lowest highway fatality rate in history. He has also been a board certified emergency physician for 25 years. Dr. Waters joined the Chertoff Group after three and a half years at the Department of Homeland Security (DHS), where his portfolio included intelligence and operational aspects of border and transportation security; immigration and customs enforcement activities; emergency management and the United States Secret Service. Prior to government service, Dr. Waters held senior strategic, financial and operations roles in early-stage organizations and turnaround situations.

“Dr. Waters and I are excited about the opportunity to deepen our relationship with BioNeutral,” Dr. Runge said. “Over the past few months, we’ve gotten to know the company, its technology and its leadership team. We believe they are on the cutting edge of biotechnology, and we’re looking forward to helping them take the next steps in developing, licensing and providing their unique formulations for the health and welfare of people.”

http://www.bioneutralgroup.com