Bio-Extraction Inc.
TSX VENTURE : BXI

Bio-Extraction Inc.

May 20, 2008 07:01 ET

BioExx Files Process Patent Application for Production of Unique Protein Concentrates and Protein Isolates

Also Files Trademarks for New Protein Products

TORONTO, ONTARIO--(Marketwire - May 20, 2008) - Bio-Extraction Inc. (TSX VENTURE:BXI) ("BioExx") is pleased to announce that it has filed a U.S. patent application on its unique and simplified processes for the production of specialty canola protein products ranging from 60% (Concentrates) to more than 90% (Isolates) protein by weight. The development work behind the patents has been completed in tandem between BioExx at its R&D facility in Charlottetown, PEI and with POS Pilot Plant Corp. ("POS"), a contract R&D facility in Saskatoon, Saskatchewan.

These developments represent a substantial escalation in the proprietary Intellectual Property base owned by BioExx. Previously, BioExx had intended to use commercially available separation technologies in its protein concentrates production. However, as a result of the R&D services supplied by POS, and the success of the ongoing R&D conducted by BioExx, it is expected that the processes subject to the patent application will result in higher quality and higher yields of proteins, lower production costs, and an accelerated time to market for the high value, human food product uses. Taken together, these factors enable greater competitive advantage, higher barriers to entry, and improved economics in the BioExx specialty protein business.

BioExx has previously developed a unique process that avoids negative changes in properties of the Canola that are caused by in traditional, high temperature oil extraction processes. This results in an "improved starting point" to separate proteins from the meal that remains after the oil extraction has been completed. This enabled development of the simplified approach to protein separation described in the new patent application. The BioExx process results in unique protein concentrates and isolates after separation.

In tandem with this effort, BioExx has also filed Canadian trademark applications in connection with the resulting five products.

The products are:

CONCENTREXX™ - a Canola Protein Concentrate, at 60% to 70% protein by weight, for primary use in aquafeeds, swine and pet foods.

ADVANTEXX™ 70 - a Canola Protein Concentrate, at 70% to 75% protein by weight, for primary use in products such as baked goods (bread, rolls, cakes, cookies, biscuits, crackers, pancakes, pastries, donuts, pasta products, etc.), meat products (baked meat, hot dogs, sausages, bologna, analogs, ham, etc.), and vegetarian foods.

ADVANTEXX™ 80 - a Canola Protein Concentrate, at 75% to 85% protein by weight, for primary use in products such as baked goods, meat products, and miscellaneous applications (candies and confection, desserts, diet items, Asian foods, soup mixes, gravies, etc.)

ISOLEXX™ - a high-functional Canola Protein Isolate, with 90% or higher protein by weight, for primary use in products such as nutritional beverages (protein fortified soft drinks, sports drinks, fruit juices, etc.), nutritional supplements, infant formulas, meat products (comminuted meats, emulsified meats, combination meat products, etc.), dairy analogs and dried milk replacers, and egg replacers.

VITALEXX™ - a hydrolyzed Canola Protein Isolate, with 90% or higher protein by weight, for primary use in products such as nutritional beverages, cosmetic ingredients, and health foods.

"We see this as a watershed moment in the development of this company. With the technical support of our research contractors such as POS and the Feeds Innovation Institute, and a phenomenal effort on the part of our BioExx R&D and Business Development teams, we are now in a position to accelerate our business plan well ahead of expectations", said Chris Carl, Chief Executive Officer of BioExx. "With the work behind these patents being completed, we expect to significantly improve our future profitability by migrating to higher value products sooner than originally anticipated, while at the same time adding tremendous additional value to our intellectual property stable. This is a great example of the tremendous results that a strong team can produce."

BioExx will now immediately begin working toward regulatory approval of the higher concentration protein products for use as food ingredients, a process which is expected to take up to one year. Individual products will be introduced and made available to customers in planned release and production phases, from lower to higher concentrations. Samples of some of these products are being shipped on a confidential basis to prospective customers who are working with BioExx to tailor the products for their end markets. Detailed product specifications and additional product samples can be made available to customers in accordance with the BioExx product management plan.

As a result of this development success, the design of the Saskatoon plant is already being modified to incorporate the ability to migrate in due course to include the production of human food use products, including a clean room and food grade equipment specifications. The target market for Concentrates to be produced at the opening of the Saskatoon plant remains firmly centred on aquaculture, and it is expected that aquaculture will always constitute a significant core component of the production in Saskatoon and at future facilities.

About Bio-Extraction Inc.

The global demand for ever higher food value from agriculture is growing at an unprecedented pace, driven by population growth and economic growth. At the same time, food supply constraints are increasing, due to urban development of arable land, alternate uses of crops for bio-fuel and other industrial purposes, and many crops having already maximized yields. The result is an alarming imbalance between over-demand and under-supply.

BioExx owns patented technology which allows for much lower temperatures to be used for the extraction of active ingredients and oils from biomass. This makes BioExx particularly well suited to process oilseed crops in a manner that allows for the production of much higher value additives to the food chain, in the form of higher yields of high value proteins which tend to be temperature sensitive. While forming just a small, but very valuable part of the solution to prominent global agricultural problems, BioExx has a mandate to rapidly grow the company through the construction and operation of extraction facilities around the world - and because of its much lower energy requirements, to do so in a very environmentally responsible manner.

To find out more about Bio-Extraction Inc. (TSX VENTURE:BXI), please visit our website at http://www.bioexx.com.

The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, the demand for BioExx' products, the availability of funding, and the anticipated costs of BioExx' plant construction and operation. These forward-looking statements are made as of the date hereof and BioExx does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the BioExx' expectations and projections.

The TSX Venture Exchange has not reviewed this press release and neither approved nor disapproved the information contained in this press release.

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