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BioLargo Retires Debt and Accounts Payable in Preparation of Commercial Focus on Water Treatment, Advanced Wound Care and Pet Products

LA MIRADA, CA -- (Marketwire) -- 01/02/13 -- BioLargo, Inc. (OTCBB: BLGO) announced today that it had retired more than $1,000,000 in debt and accounts payable by issuing a combination of stock and options at a 20% premium to the market price of its stock. The significant reduction in liabilities sets the stage for an increased commercial focus on three specific areas for the BioLargo technology -- water treatment, advanced wound care, and pet products.

BioLargo's president, Dennis Calvert, stated, "This is the first time since we acquired the BioLargo technology in 2007 that we have operated with such limited debt and liabilities. Since the acquisition, we have placed, through various private offerings, more than $9,000,000 to advance our technology, develop a series of products, and maintain operations. We have been awarded five patents and have multiple additional applications on file that encompass dozens of novel claims surrounding our technology. Our product designs and technical claims have received validations at the highest levels, which include expert independent testing labs, university studies, side-by-side reviews and comparisons. We have even won a Product of the Year award and our Isan technology received an Artemis 'Top 50 Water Company' honor along the way.

"As we march into 2013, we are excited about the commercial opportunities before us and are anxious to work toward our goal of generating meaningful revenues and returns for our shareholders. In water treatment, our new technology has undergone its first round of testing at the University of Alberta Department of Engineering to validate its efficacy for use in the Canadian oil sands. We expect the results of this work to be published soon. We believe our new water treatment technology will be able to treat contaminated water better, at a lower cost, and faster than existing technologies. This technology could have significant impact on any industry that must contend with contaminated water including shale gas, hydraulic fracking, and industrial wastewater. We intend to focus significant efforts in early 2013 developing a commercial strategy for this technology, which will likely include the formation of a subsidiary and a dedicated management team. We intend to continue to advance its design, validate its claims, and refine its function.

"In advanced wound care, our two initial products recently passed third party testing to validate both efficacy and safety. With proof of claims in hand, a team of key executives, and a strategic supply chain partner to finalize our market-ready products, we should be ready to file an FDA 510(k) in the second half of 2013 and we expect to be ready for market in late 2013.

"With pet products, our work over the past two years within the companion animal segment through our Odor-No-More brand has enabled us to develop a series of great products that out-perform the competition and are being prepared for market introduction in early 2013 under the brand name Nature's Best Solution®."

About BioLargo, Inc.
We make life better by delivering technology-based products that help solve some of the world's most important problems that threaten our water, food, agriculture, healthcare and energy. Our website is Our Odor-No-More Inc. subsidiary features award-winning products serving the companion animal and equine markets. ( BioLargo also owns a 50% interest in the Isan System, already commercialized in Australia, which was honored with a "Top 50 Water Company for the 21st Century" award by the Artemis Project. Our subsidiary, Clyra Medical Technologies, Inc. focuses on advanced wound care management and is preparing to make FDA 510(k) applications in 2013.

Safe Harbor Statement
The statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, the risks and uncertainties included in BioLargo's current and future filings with the Securities and Exchange Commission, including those set forth in BioLargo's Annual Report on Form 10-K for the year ended December 31, 2011.

Contact Information
BioLargo Contacts
Dennis P. Calvert

Howard Isaacs
Investor Relations

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