December 29, 2005 16:00 ET

Ceapro successfully closes $1.3 million financing

EDMONTON, Dec. 29 - Ceapro Inc. (TSX VENTURE:CZO) today announced the
closing of a $1.3 million financing. The financing comprised investment of up
to $800,000 by AVAC Ltd and $502,700 from the private placement announced on
November 14, 2005. Reporting insiders participated in 24.62% of the private

Dr. Mark Redmond, Ceapro's President and CEO stated, "This is an
important financing for Ceapro. The proceeds will be used for the marketing of
CeaProve™, Ceapro's diabetes screening, diagnosis, and monitoring test, as
well as for general corporate sales and marketing activities. During 2005, we
have markedly increased our product sales and at the end of the third quarter
reported growth of 25%. This trend has continued in the fourth quarter. This
financing will enable us to focus on our growth strategy for 2006."

The AVAC investment agreement is for an approved investment of up to
$800,000 for CeaProve™, Ceapro's diabetes screening, diagnostic, and
monitoring product. AVAC's investment will enable Ceapro to further
commercialize CeaProve™. Previous AVAC investments enabled Ceapro to
successfully develop and commercialize a series of products including the
active ingredients beta glucan and colloidal oat extracts, as well as product
line extensions to the veterinary therapeutic product range.

The private placement resulted in the sale of 914 units for a total of
$502,700. Each unit consists of 100 common shares priced at $0.50 per share,
100 common share purchase warrants, and 100 royalty interest units at $5.00
per unit. Each warrant entitles the holder thereof to acquire one additional
common share at a price of $0.55 per share for a period of six months until
June 28, 2006 and thereafter at a price of $0.75 per share until December 28,
2007. The common shares issued under the private placement or upon exercise of
the warrants will be subject to a hold period which will expire upon April 29,
2006. Each royalty interest unit entitles the holder to a royalty equal to
0.000025% of the net proceeds received by Ceapro from the sale or license of
its Active Ingredients, Animal Health Products and CeaProve™ up to a
maximum cumulative amount equal to $10.00 per royalty interest unit.

About Ceapro Inc.

Ceapro Inc., an innovation-driven biotechnology company, develops and
commercializes organic products for medical, cosmetic, and animal health
industries using proprietary technology and natural, renewable resources.
Based in Edmonton, Alberta, Ceapro is one of Alberta Venture's Fastest Growing
Companies for 2004 and 2005 and is one of Profit Magazine's Next 100
Companies. Ceapro is also the recipient of the ASTech Award for Outstanding
Commercial Achievement for companies with annual sales of less than
$25 million. Ceapro's shares trade on the TSX Venture Exchange under the
symbol CZO. To learn more about Ceapro, log on to our website at
www.ceapro.com. Shares Outstanding: 36,768,593. Closing price December 28,
2005: $0.265

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 statement.

Contact Information

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