Yunhong CTI Ltd. (Yunhong CTI or the company) announced that through its partnership with Yunhong Biotechnology Inc. (YB), a member of the Yunhong Group (YG) family of companies, established to bring to the U.S. market its advanced compostable materials, it is supporting research and development programs to develop compostable, biodegradable and recyclable components for Yunhong CTI's existing and expanding product lines. This effort includes cooperation with university research and development departments, technological institutes, laboratories, manufacturers and policy makers in the United States and China. YG has been awarded patents in China for its compostable materials that are designed be used broadly in manufacturing and distribution, potentially including the manufacture of balloon products and peripherals within the Yunhong CTI portfolio.

Yunhong CTI has been engaged in prototype development of these material solutions. It is expected that YG's patented technologies will allow Yunhong CTI to bring to market products that will meet biodegradable and compostable standards and customer objectives in the US. In total, YG has been awarded four patents in China for its sustainable materials.

YG contracted with Hubei Yonghe Mingda Assets Appraisal Co. Ltd., which performed an independent patent valuation on one of the issued patents at a value in excess of $300 million (USD). Yunhong CTI has not independently performed any valuation of the patents.

The companies are currently in prototype development on various product components. In addition to supporting the development of YG's environmentally friendly materials solutions, Yunhong CTI is in preliminary negotiations with a potential partner to expedite its ability to bring sustainable products to market. YB's proprietary technology has been awarded LFGB certification in China and CE certification through the Instituto Servizi Europei Technologici (Italy).