BioExx Specialty Proteins Ltd.
TSX : BXI

BioExx Specialty Proteins Ltd.

February 24, 2011 07:00 ET

BioExx Successfully Completes ISO 22000 Audit

TORONTO, ONTARIO--(Marketwire - Feb. 24, 2011) - BioExx Specialty Proteins Ltd. (TSX:BXI) is pleased to announce that, following on-site audit inspections over a two-week period, the company has been awarded certification for ISO 22000:2005, which incorporates the principles of both HACCP and GMP, by NSF International Inc. ("NSF"). This certification is required to allow BioExx to sell its conforming protein products into human food markets.

As described by NSF on its website, the "International Organization for Standardization (ISO) 22000:2005 Standard: Requirements for a Food Safety Management System", demonstrates an organization's commitment to food safety, and provides a means to demonstrate that an organization is taking the necessary steps to control food safety hazards. The standard has three parts including: Good Manufacturing Practices (GMP); Hazard Analysis Critical Control Points (HACCP) principles; and management system requirements. ISO 22000:2005 applies to all organizations, regardless of their size, that impact the food chain. This includes ingredient suppliers, equipment manufacturers, package suppliers, service providers, farmers, food processors, and catering and retailing organizations.

NSF Food Safety Auditors check conformance with internationally recognized Codex General Principles of Food Hygiene, and Codex Codes of Practice. NSF International Food Safety Auditors work with companies to ensure that there are effective systems in place for sanitary food processing. NSF International Food Safety Auditors are also qualified to verify compliance with U.S. FDA and USDA regulations for Good Manufacturing Practices (GMPs) and Sanitation Standard Operating Procedures (SSOPs).

While it was noted that production levels to date have not been as high as expected, the findings of the auditors resulted in citing only two minor non-conformances, dealing first with ensuring that all food safety management systems are subject to ongoing internal audits and second, that a complete Emergency Preparedness & Response plan be fully instituted. BioExx has already submitted the required corrective action plan and has made the changes to its systems effective immediately. Both the corrective actions and ongoing plant operations will be verified at the next regularly scheduled surveillance review that all certified companies undergo to ensure that the food safety system is monitored and maintained.

The Company is also pleased to confirm that it continues to make progress on production challenges. Most of the vendor-related equipment problems have been resolved either through replacement or on-site corrective actions, with only one piece of equipment remaining to be replaced. In this instance, a smaller volume substitute has been installed until the replacement is in place in approximately six weeks.

With the audit completed, and equipment issues largely resolved, the Company is now able to concentrate on growing its production volumes. The biggest challenge now being addressed results from two positive functional attributes of Isolexx™, foam and emulsion, being moderately formed at the extraction stage and negatively impacting downstream processes. Two sets of corrective measures are being installed; first in the next two weeks, followed by a more robust solution in approximately eight weeks. During this time the plant will be operated at modest volumes (likely below 10% capacity early in the period) and once fully addressed, maintain the goal to approach full Isolexx™ capacity toward mid-year, consistent with plans as previously disclosed.

"The BioExx team is thrilled to have achieved such a high quality result on its first external ISO audit. This is a huge milestone not only for a new food company but also for a company using first-of-a-kind technology," said BioExx CEO Chris Carl. "As we have discussed in the past, we expected to face some challenges as we bring this pioneering technology to full scale but we are pleased that nothing has emerged that suggests any unresolvable long term issues. Throughout this process, our Operating and Engineering teams, and now the separate Quality Assurance team, have demonstrated an incredible capacity for hard work, problem solving, and positive results and what remains now is to steadily build our production volumes."

About BioExx Specialty Proteins Ltd.

Headquartered in Toronto, Canada, BioExx is a leading technology and industrial processing company focused on the extraction of oil and high-value proteins from oilseeds for the global food, beverage, and nutrition markets. BioExx uses patented and patent-pending technology that utilizes significantly lower temperatures than conventional methods for extracting the final quantities of oil necessary to enable its simplified and patent- pending methods for separating proteins from oilseeds. BioExx believes that these processes cumulatively have the potential to make a valuable contribution to global food and protein supply while maintaining an environmentally sustainable footprint. BioExx operates a commercial scale extraction facility in Saskatoon, Saskatchewan, is in development stages on it second plant in Minot, North Dakota and has a mission to construct additional and larger processing facilities on a global basis.

To find out more about BioExx Specialty Proteins Ltd. (TSX:BXI), please visit 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, competition in its target markets, the demand for BioExx's products, the availability of funding, the efficacy of its technology, and the anticipated costs of BioExx's 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 BioExx's expectations and projections.

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