PharmEng International Inc.
TSX VENTURE : PII

PharmEng International Inc.

November 09, 2007 11:49 ET

PharmEng Announces Opening of Pharmaceutical Manufacturing Facility in Cape Breton, N.S.

TORONTO, ONTARIO--(Marketwire - Nov. 9, 2007) - PharmEng International Inc. (TSX VENTURE:PII), a full-service consulting and contract manufacturing company, today announced the official grand opening of its state-of-the-art pharmaceutical manufacturing facility in Nova Scotia. Presiding at the ribbon cutting ceremony was the Honourable Cecil Clarke, Minister of Justice, Province of Nova Scotia, Senator Gerald Comeau on behalf of the Honourable Peter MacKay, Minister of National Defence and Minister of the Atlantic Canada Opportunities Agency (ACOA), Alan Kwong, President of PharmEng International Inc. and David Leonard, President of Keata Pharma Inc.

The 46,400-sq.ft. facility, which operates under the name of Keata Pharma, includes offices for PharmEng's pharmaceutical consulting division, pilot laboratories for formulation development, rooms with various capabilities such as high shear mixing, container blending and equipment for modified release technology in a control environment that meets all cGMP requirements. The facility will have the necessary equipment and approvals to provide formulation development and testing services to manufacture and package products in solid and liquid dosage forms. Keata's long-term goal is to develop capabilities in other dosage forms, such as suppositories, topicals and injectables.

The facility is located on five acres in the Northside Industrial Park, a 300 acre business park in North Sydney, NS.

Keata's new facility in Cape Breton offers industry-leading capabilities. "We are committed to delivering the best value to all of our customers and are proud of the role Keata and its employees will play in the Cape Breton community," said Alan Kwong, President of PharmEng "Cape Breton's readily available infrastructure, skilled workforce and government support, coupled with PharmEng's technology leadership and expertise, gives us the confidence in delivering the best value in manufacturing services to our customers."

The facility will initially employ 65 workers and is anticipated to grow to in excess of 150 workers within three years. It is the only plant of its kind in Nova Scotia and one of the few plants in Canada that offers modified release manufacturing capabilities. Production is expected to commence in early Q1 of 2008. The use of state-of-the-art technology gives Keata the opportunity to manufacture for the US market.

Noting that PharmEng has invested over $15 million in the facility, Mr. Kwong explained: "This facility will produce products for both domestic and international markets, while expanding the depth of services that the province can offer in the pharmaceutical sector."

"The Government of Canada is working with business to get things done for the people of Cape Breton," said Senator Comeau. "Cape Breton's seemingly endless potential for business growth and Cape Bretoners' reputation for ingenuity, dedication, productivity and a strong work ethic makes this location a wise choice for Keata."

"Keata Pharma is a perfect fit in Cape Breton's growing and diversified economy - a manufacturing business in the life sciences that has partnered directly with Cape Breton University and is hiring specially trained graduates from CBU," said Premier Rodney MacDonald. "This is another private-sector, export-based growth story that's creating new options for young people who are building exciting careers right here in Nova Scotia."

The Government of Canada has invested $6.25 million in repayable contributions for the construction of the Keata Pharma Inc. facility through the Cape Breton Growth Fund ($5 million), Enterprise Cape Breton Corporation ($750,000), and ACOA's Business Development Program ($500,000).

About PharmEng International Inc.

PharmEng International Inc., headquartered in Toronto, Canada, is a full-service consulting and contract manufacturing company that serves the pharmaceutical, biotechnology and medical device industries in North America and internationally. Consulting services include project management, engineering, GMP, validation, calibration, regulatory compliance and certified training. Contract manufacturing includes pharmaceutical support, formulation development, laboratory testing, and finished solid dosage and liquid products. Building on a foundation of over seven years of successful consulting, PharmEng in combination with its wholly owned manufacturing subsidiary, Keata, has evolved into a full service pharmaceutical company. PharmEng's shares trade on the TSX Venture Exchange under the symbol PII. For more information about PharmEng, please visit the Company's website at www.pharmeng.com.

FORWARD LOOKING STATEMENTS

Certain statements in this press release may include "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of PharmEng to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements use such words as "may", "will", "expect", "anticipate", "project", "believe", "plan", and other similar terminology. The risks and uncertainties are detailed from time to time in reports filed by PharmEng with the securities regulatory authorities in all of the provinces and territories of Canada. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of PharmEng to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

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