SOURCE: Eugene Science, Inc.

November 13, 2007 08:00 ET

Eugene Science Details Growth Strategy in Special Letter to Shareholders

LOS ANGELES, CA--(Marketwire - November 13, 2007) - Eugene Science Inc. (OTCBB: EUSI), a leader in the nutraceutical marketplace with its cholesterol lowering CholZero (CZ™) plant sterols today issued the following Special Letter to Shareholders.

"Dear Shareholder:

Eugene Science is pleased to provide you with an update on our progress in executing our growth strategy based on plant sterols produced with our patented, nano-technology process.

We believe the sterol market is only now beginning to realize its mass-market growth potential, and this company is preparing to accelerate sales in Asia and the Americas with an ambitious business plan -- outlined below -- to strengthen its infrastructure and launch multiple new global marketing initiatives. Additionally, to increase its opportunities for success, Eugene Science or its affiliates own patents on other highly promising nutraceutical technologies that it intends to advance to commercialization in the months ahead.

According to federal estimates released in July 2007, U.S. adult consumers spent more money on cholesterol-lowering drugs than any other class of drugs in 2004 -- this in spite of the drugs' high costs. In the year ended June 30, 2006, sales of cholesterol-lowering prescription statin drugs totaled $32.7 billion. Worldwide, Pfizer Inc.'s Lipitor™ was the best selling drug in any class with $13.3 billion in sales.

Beyond its well documented cholesterol lowering benefits, CZ™'s nano-sized particles produce exceptional water solubility and bio availability rendering it ideal for blending in many foods and beverages -- securing its enviable position as the market's premier sterol product. While the worldwide consumer rates of sterol adoption in the past two years were slower than anticipated, today we are seeing a resurgent market.

Analysts at Frost and Sullivan project that the U.S. and European sterol market alone will grow 15% annually to $617 million by 2012. Combined with today's large and fast growing Asian and Latin American sterol markets, we see a worldwide addressable market of more than $1 billion.

Food industry executives polled by Reuters Business Insight predict that, by 2009, cholesterol-lowering foods would be the most profitable health food, far ahead of recently trendy products such as low-carb foods.

Currently, we are seeing record levels of interest from our customer base reflected, in part, by the introduction of several new CZ™-enhanced products in the past year and active consideration of numerous others. This trend is confirmed by a number of non water-soluble plant sterol-enhanced food products recently introduced by competitors. With the functional food sector outgrowing niche status and reaching mainstream grocery store shelves, Eugene Science is moving aggressively forward to capture an increasing share of this growth market.

Our strategic relationship with Archer Daniel Midland Co. which sells our CZ as its CardioAid family of plant sterols -- actively markets CardioAid to its global customer base. ADM holds exclusive marketing rights to CZ™ as a beverage additive in North America and Europe.

Already this year, Eugene Science retained a marketing firm specializing in the enormous Chinese market, raised capital and, in Korea, began construction of a new, state-of-the-art production facility outside Seoul. Our plans for the next 120 days include:

--  Increase revenues, beginning in the second half of 2007 and
    accelerating strongly into 2008 as we target positive cash flow.
    
--  Reinforce management. We will enhance the Company's management team
    and board of directors with highly experienced, senior industry executives
    -- as well as with expert international sales and marketing consulting
    firms.
    
--  Boost capacity. Eugene Science plans to move into its new larger
    facility outside Seoul by year end. This will enable the Company to double
    its CZ™ plant sterol production capacity from 50 tons to up to 100 tons
    monthly -- which translates into gross revenue capacity of up to
    approximately $5 million monthly.
    
--  Establish U.S. headquarters. We will set up a U.S. headquarters office
    in Los Angeles to better serve our U.S., Latin American and European
    customers and markets.
    
--  Develop our Ceragem relationship. Likewise, we will grow our
    relationship with Ceragem, a leading Los Angeles-based worldwide retailer
    of holistic health products, through additional product lines and marketing
    campaigns.
    
--  Restructure balance sheet. A restructuring of the Eugene Science
    balance sheet is actively under way, and we anticipate achieving major
    progress toward reducing debt, raising our working capital and
    strengthening our cash position.
    
--  Build on Asia success. Asian markets were the first to widely adopt
    plant sterols for their cholesterol-lowering properties, starting with our
    CZ™ cooking oil product in Korea and continuing with products such as
    the cholesterol-lowering chocolate ice cream sold by our Japanese customer
    Donatello's. Eugene Science is actively pursuing new and expanded strategic
    relationships with food and beverage companies in Korea, Japan and China.
    
--  Develop the Americas. Eugene Science will target new national account
    sales opportunities for CZ™-enhanced foods and oils in the U.S., as well
    as new food and beverage accounts in South America.
    

Additionally, to broaden and diversify its portfolio of leading nutraceutical products, Eugene Science plans to:

--  Develop AD/ADD biotechnology. The Company's AD/ADD biotechnology --
    well established at prototype scale -- uses our patented microorganism-
    based process to produce far higher conversion rates of sterols into AD/ADD
    vs. conventional chemical synthesis. Having secured our AD/ADD intellectual
    property in recent months, we believe the time is right to advance this
    science toward commercial production levels. AD/ADD is a steroid hormone
    intermediate and key ingredient for most steroid hormone medical products
    including synthetic estrogens, gestogens, gluco-corticoids, and mineral-
    corticoids -- a market led by Pfizer and Schering-Plough estimated at $7.5
    billion worldwide.
    
--  Pursue new technologies. Eugene Science continues to investigate other
    complementary nutraceutical sector technologies that offer large, near-term
    revenue potential that it can efficiently commercialize and then license or
    sell through its growing marketing channels.
    

I am confident your company today is in the right market, with the premier sterol product, at the right time. We intend to reinforce management, strengthen finances, and aggressively launch multiple CZ™ marketing campaigns to leading food and beverage producers throughout several target markets.

Additionally, we intend to unlock what we believe to be the enormous value of our IP estate with the development or licensing of AD/ADD and other proprietary technologies. Our goal is to achieve several new or expanded customer sales agreements over the next several months to generate a new, higher revenue base upon which to build and increase the Company's earnings potential. We appreciate your confidence and support.

Sincerely yours,

Seung Kwon Noh
Chairman and Chief Executive Officer"

About Eugene Science, Inc.

Based in Bucheon, Kyunggi-Do, Korea, Eugene Science is a global biotechnology company tackling ailments such as heart disease, obesity and diabetes through innovation in the nutraceutical field. Its first commercial heart disease product, CZ™, is a patented, nanoscience-based, water-soluble functional food ingredient containing natural plant sterols that help maintain healthy cholesterol levels by inhibiting its absorption. CZ™ is available in capsule form, or as a food or beverage additive. These plant sterols are approved by the U.S. FDA for health claims related to cholesterol lowering efficacy. Please visit www.eugene21.com.

Forward-Looking Statements: This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, from time to time, Eugene Science, or its representatives, have made or may make forward-looking statements, orally or in writing. The words "estimate," "project," "potential," "intended," "expect," "anticipate," "believe" and similar expressions or words are intended to identify forward-looking statements. Such forward-looking statements may be included in, but are not limited to, various filings made by Eugene Science with the United States Securities and Exchange Commission (available at www.sec.gov), press releases or oral statements made with the approval of an authorized executive officer of Eugene Science. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions. Reference is hereby made to Eugene Science's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006 for information regarding those factors and conditions. Among the important factors that could cause actual results to differ materially from management's projections, estimates and expectations include, but are not limited to: changing economic influences in the nutraceutical industry; dependence on key personnel; actions of third parties; the market for nutraceutical products containing Eugene Science's CZ™ ingredient, and availability of adequate financing. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as of the date of this press release. Eugene Science undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

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