January 04, 2007 17:01 ET

Ceapro announces establishment of Ceapro BioEnergy Inc.

EDMONTON, Jan. 4 - Ceapro Inc. (TSX VENTURE:CZO) today announced the
establishment of Ceapro BioEnergy Inc. (CBE), a wholly-owned subsidiary to
utilize Ceapro's proprietary technology for the production of ethanol and
value-added products.

"Ceapro has recognized that our core processing and extraction technology
is directly applicable to the production of green renewable fuels such as
ethanol," stated Dr. Mark Redmond, President and CEO of Ceapro. "The recent
directive from the Canadian Federal Government requiring the incorporation of
5% renewable content in gasoline by 2010 confirmed that we will have a market
for ethanol. In addition, the Alberta Government has committed a total of
$269 million to develop the province's renewable fuels industry and to support
technology investment. The combined factors of our technology, an immediate
market, and government support provide Ceapro with a significant business
opportunity". Dr. Redmond also praised the Federal and Alberta Governments for
providing the appropriate economic environment to allow biotechnologies such
as Ceapro to thrive.

To begin operations, CBE has received a conditional award for $300,000
from the Federal Government Biofuels Opportunities for Producers Initiative
(BOPI) program. The non-repayable funding will support a feasibility study for
the construction and operation of a biorefinery and processing plant. Should
the feasibility study prove favourable, Ceapro will work in partnership with
fuel distributors and commence plant construction with a projected opening in

Since 1992, Ceapro has worked in the grain processing and value-added
industries, and as a result has acquired business acumen, scientific
expertise, and technology which are directly applicable to the development of
a new and integrated approach to bioenergy production. The bioenergy industry
works in tandem with the agriculture industry to add value to crops, to expand
markets, to create jobs, and to support the diversification of rural
economies, thus protecting rural life and rural communities.

About Ceapro Inc.

Ceapro Inc. is a growth stage biotechnology company. Ceapro's core
technology is the extraction of functional, active ingredients. We will
continue to add value to our extracts by manufacturing medical and therapeutic
products, support the use of our extracts in products for human and animal
health, and introduce health and wellness services employing our CeaProve®
diagnostic technology. Ceapro shares trade on the TSX Venture Exchange under
the symbol CZO. To learn more about Ceapro, visit our website at
www.ceapro.com. Shares Outstanding: 37,505,505, Recent Close: $0.26

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this news release.

This release may contain forward-looking statements. Various factors
could cause actual results to differ materially from those projected in
forward-looking statements. Although the Company believes that the
forward-looking statements contained herein are reasonable, it can give no
assurance that the Company's expectations are correct. All forward-looking
statements are expressly qualified in their entirety by this cautionary

Contact Information

  • Dr. Mark Redmond, President, Ceapro Inc.,
    Telephone: (780) 421-4555