Functional Technologies Provides Update on Yeast Business

Tag : Dry Yeast

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 21, 2008) -Functional Technologies Corp. (TSX VENTURE:FEB) is pleased toannounce that it has secured the first commercial productioninventory of its urea-degrading Phyterra Yeast products, which havebeen proven to substantially reduce the formation of ethylcarbamate (also known as urethane) in fermented foods andbeverages. Ethyl carbamate is classified by the World HealthOrganization as a Group 2A carcinogen - the same carcinogen classas lead, mercury, acrylamide and diesel exhaust.
This initial 1,600 kilogram active dry yeast inventory was producedfor Functional Technologies by one of the world's largest andfinest yeast manufacturers and is scheduled to be received inAugust 2008. It will be available for sale to both the home wineand commercial winery markets. With the end of its 2008 fiscal yearon August 31st, 2008, Functional Technologies therefore anticipatesinitial product revenues to occur during its 2009 fiscal year.
"The receipt of our first commercial product will be an importantmilestone for Functional Technologies, as we transform from being apre-revenue company to a revenue growth company," commented HowardLouie, CEO of Functional Technologies. "This initial product launchwill help us build brand recognition and address the growingconsumer awareness regarding the risk of ethyl carbamateconsumption, in both the home wine and commercial winery markets.The Company intends to procure larger volumes of inventory fromboth contract manufacturing and the development of in-housemanufacturing capability, to supply expected increasing sales infiscal 2009 and beyond."
Functional Technologies' initial inventory shipment of itsurea-degrading Phyterra Yeast will consist of two well known yeaststrains. The Company has four additional widely-used wine yeaststrains ready for subsequent production runs.
"We plan to actively expand our yeast product portfolio through theroll-out of additional strains throughout the coming fiscal year,"added Garth Greenham, Functional Technologies' Chief OperatingOfficer. "Furthermore we continue to work on other exciting ethylcarbamate minimizing opportunities, including sake yeasts andsimilar rice wines, which we see as a near term priority."
About Functional Technologies Corp.
Functional Technologies is a functional foods and biological healthproducts company that develops and commercializes advanced yeastproducts, and other novel biological products, for the food and thehealth care industries. The Company is currently commercializing aplatform yeast technology that substantially reduces the formationof ethyl carbamate (also known as urethane, which has been recentlyreclassified by the World Health Organization up to a Group 2Acarcinogen - the same carcinogen class as lead, mercury, acrylamideand diesel exhaust), from wines and other fermented beverages andfoods. Functional Technologies has licensed the exclusive worldwiderights to this technology from The University of British Columbia(UBC). The company is expanding the development of next generationproducts in this area, as well as evaluating new yeast basedtechnologies with broad commercial market applications. In additionFunctional Technologies, through its wholly-owned subsidiary, isdeveloping a platform of proprietary biological products for theanimal and aquaculture health care markets utilizing proprietaryscience in the field of micro-algae.
This news release contains forward-looking information. The readeris cautioned that assumptions used in the preparation of suchinformation, although considered accurate at the time ofpreparation, may prove incorrect. The actual results achieved mayvary materially from the information provided herein. Consequently,there is no representation by Functional Technologies Corp. thatactual results achieved will be the same as those forecast.
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