FORT LAUDERDALE, Fla., July 25, 2012 /PRNewswire/ -- The following is a letter sent to shareholders of BioPower Operations Corporation from CEO Robert Kohn on July 25, 2012.

Dear Shareholder,

With this, my first letter to our shareholders, I want to thank you for your commitment to BioPower and your confidence in our management team and plans.

We want to inform you as to where we are headed, the business projects we have and our opportunities for future results.

FTZ Exchange

We have recently acquired a 100% interest in FTZ Exchange LLC, which is a licensing company providing technology and know-how to build transaction fee based exchanges for the sale of products and services for business to business and business to consumer communities. FTZ owns a 50% interest in Qx Health Exchange and 100% of FTZ Energy Exchange Corporation. We have launched phase I of the Qx Health Exchange and intend to launch the Energy Exchange later this year.

We believe the timing is right to combine the internet, technology, brick and mortar sectors in vertical markets and social networking to create transaction fee based exchanges 

In conjunction with the consulting agreement we executed with Quture Inc., we saw the opportunity for a health exchange providing quality and proprietary health products and services to the community of hospitals, medical centers, physicians, health workers, patients and medical tourism. Furthermore, with Quture Inc., as our joint venture partner, we saw the exchange having its own proprietary quality health products for further revenue, creating incentive and profit opportunities. At present, we are in discussions to select a technology backbone provider, front end systems provider, potential preferred partner network companies who will provide services to manufacturers and distributors of health products and services.

Twelve years ago, I was President of a division of Exelon, the largest electric utility in the United States. The business unit, Entrade, stood for energy trading and combined the internet as a tool to facilitate business to business trading while selling energy and energy related products. Our first exchange was for utility parts which started with a $3 billion inventory in new utility parts from Exelon which we sold or traded. Other utilities joined the exchange and the concept was born. When Entrade sold its interest in April 2000, I left and became the CEO of AssetTrade, which today is GoIndustry Dove Bid www.go-dove.com with 1,300 employees in 20 countries.

Biomass Projects

One of our strengths is the ability to adapt to the marketplace and investment interest. New opportunities for short term biomass solutions, one being castor, could prove to be profitable in a short period of time. This project can meet the requirements of project finance investors.

Castor seed is processed into a natural oil that is an excellent specialty chemicals feedstock. This natural oil can also be processed into biodiesel fuel. Castor oil is used in the production of cosmetics, pharmaceuticals and other products. In order to succeed in the castor business, we need to have a plantation and agricultural equipment to grow the biomass, and a mill to crush the oil producing seed.

Each castor project must be self-sufficient by way of traditional project finance or we will find a joint venture partner to fund the project.  Both of these methods should require no dilution of the Company's common stock. BioPower and our shareholders will benefit with each project.

Dale Shepherd, the President of BioPower, has had a successful history negotiating extensive transactions, developing new businesses and operating them successfully with GE and other major corporate entities. He has the unique skill of creating and implementing detailed business plans with a focus on completing projects on time and within budget.

He and his team will maintain their focus on the current biomass projects for BioPower including castor plantations and the pursuit of other related technologies.

Our approach is to focus our efforts on building out the FTZ exchanges and explore biomass opportunities as they arise. If you want to learn more about BioPower or FTZ, please visit our websites at www.biopowercorp.com or www.ftzexchange.com

We appreciate your patience and the trust you have shown by being a shareholder of BioPower. We plan on moving into the future with greater opportunities than ever before.  We will work diligently and use our best efforts to make BioPower a successful company.

Again, we thank you for believing and trusting in our management team.

Sincerely,

Robert Kohn

CEO

Contact:

Investor Relations

Constellation Asset Advisors, Inc.

415-524-8500   

BioPower Operations Corporation

954-607-2800 

SOURCE BioPower Operations Corporation

Copyright 2012 PR Newswire

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