Calgary, Alberta
December 10,  2001

SemBioSys Genetics Inc., a Calgary-based biotechnology company, formally opened its new corporate headquarters today in Calgary. The 25,000 square foot integrated facility contains the Company's corporate headquarters, research and development facilities and pilot plant.

"With this facility we will be able to fully deliver on the promise of our oleosin technology platform" said SemBioSys President and Chief Executive Officer Andrew Baum. "We recognize that execution is critical to allowing us to enable our partners to commercialize their products, and that execution is in turn dependent upon a coordinated approach to development that can only be accomplished through cross-disciplinary execution and access to state of the art equipment. We are committed to building a product development machine that will reliably produce produ ts in the shortest possible length of time, and our new facility will help us to do so."

The formal opening of the facility follows the announcement last month that SemBioSys will receive a CDN $5,522,607 repayable contribution from Technology Partnerships Canada (TPC). SemBioSys completed a private Series A financing with a syndicate led by Bay City Capital through its North American Nutrition and Agribusiness Fund in November of last year.

SemBioSys is using a variety of genetic engineering technologies to express proteins in the seeds of safflower. Embodiments of the technology enable the attachment of proteins to oil bodies, natural oil storage organelles found in oilseeds, through either direct targeting or affinity capture. Taking advantage of the simple physical principle that oil is lighter than water, oil bodies can be easily separated from the majority of other seed components. Combined with low-cost production of plant-based systems, this provides a cost-effective solution for bulk protein productio and purification. The technology also offers a unique platform for the oral and topical delivery of bioactive peptides and proteins. The Company operates a pilot manufacturing facility that can deliver oil body-based products and purified protein at scale.

SemBioSys' has established partnerships with Syngenta, Metabolic Pharmaceuticals and a multinational fine chemical manufacturer. In October 2000 the Company completed a CDN $16.5 million private financing from a syndicate, led by Bay City Capital through its North American Nutrition and Agribusiness Fund. Other investors include Business Development Bank of Canada, Dow AgroSciences Canada Inc., Royal Bank Capital Partners, University Technologies International, Ventures West, and scientific founder Dr. Maurice Moloney.

Company news release
N4036