SOURCE: Eugene Science, Inc.

November 14, 2006 08:30 ET

Eugene Science Signs Major Distribution Agreement With RexGene Biotech

RexGene to Manufacture and Market Several CZ™ Products

LOS ANGELES, CA -- (MARKET WIRE) -- November 14, 2006 -- Eugene Science, Inc. (OTCBB: EUSI), a developer and marketer of advanced nutraceutical products, today announced it has established a strategic distribution alliance with RexGene Biotech under which RexGene will manufacture and market several cholesterol-lowering nutracuetical products containing Eugene Science's patented CZ™ ingredient.

Founded in 1995, Seoul, Korea-based RexGene is a publicly traded (Kosdaq) major manufacturer, marketer and distributor of various health and nutritional products. With sales of more than $20 million, it has a proprietary catalog of 180 popular products ranging from a phytoestrogen female hormone supplement to gamma-linoleic acid for blood circulation and glucosamine for joint function.

The companies have signed a signed a memorandum of understanding under which RexGene will purchase Eugene Science's water soluble CZ™ plant sterol ingredient for inclusion in a new line of RexGene cholesterol-lowering nutraceutical products such as capsules, beverages and more.

Definitive product distribution agreements will be put in place in the weeks ahead as RexGene is to develop and launch the first of several CZ™-based products beginning in January, followed by other product launches throughout the first half of 2007. Based on its considerable experience, RexGene's forecast for CZ™ purchases to support a mass-market, multi-product line of cholesterol-lowering supplements indicate RexGene would become one of Eugene Science's largest customers in early 2007.

RexGene has large-scale nutritional supplement manufacturing facilities, extensive marketing reach and capability with nearly 30 distribution channels including large corporations such as KT&G (Korean Tobacco and Ginseng), High-living (network marketing), Korea's largest drugstore chain Onnuri (1,500 member stores), Sanga Pharmaceutical Co., online shopping malls and many others.

To build brand value rapidly, RexGene will market its CZ™ product line through multiple channels including network marketing, drug store chains, online shopping malls and direct response home shopping television starting in January.

Additionally, the Eugene Science retains overseas distribution rights, to include the United States, for RexGene-manufactured CZ™ finished products, providing Eugene Science distribution leverage with added product to push through its existing and new distribution channel partners throughout Asia and elsewhere.

"The Eugene Science water soluble CZ™ ingredient is the ideal platform upon which RexGene will create a large and important new product line that we are confident will by met with strong demand by South Korea's 50 million consumers," said IL Jae Jung, Senior Marketing Manager, RexGene. "Both companies share a deep commitment to bringing state-of-the-art nutraceutical products to market, and we believe this strategic alliance offers great potential."

"RexGene is a terrific company with powerful integrated development, manufacturing and marketing ability," said Seung Kwon Noh, Chief Executive Officer, Eugene Science. "Their product development and sales capability is second to none and will enable Eugene Science to rapidly build CZ™ sales in Korea while putting new products through our growing overseas distribution network."

"Our marketing team is continuing to develop new product and market opportunities and I expect we will establish additional distribution agreements in the weeks ahead," Mr. Noh added.

About RexGene Biotech

For additional information about RexGene Biotech, please visit its website at http://www.RexGenebio.co.kr/english/home/main/Info.php?code=AA.

About Eugene Science

Based in Bucheon, Kyunggi-Do, Korea, Eugene Science is a global biotechnology company tackling ailments such as heart disease, obesity and diabetes through innovation in the nutraceutical field. Its first commercial heart disease product, CZ™, is a patented, nanoscience-based, water-soluble functional food ingredient containing natural plant sterols that help maintain healthy cholesterol levels by inhibiting its absorption. CZ™ is available in capsule form, or as a food or beverage additive. These plant sterols are approved by the U.S. FDA for health claims related to cholesterol lowering efficacy. Please visit www.eugene21.com.

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, from time to time, Eugene Science, or its representatives, have made or may make forward-looking statements, orally or in writing. The words "estimate," "project," "potential," "intended," "expect," "anticipate," "believe" and similar expressions or words are intended to identify forward-looking statements. Such forward-looking statements may be included in, but are not limited to, various filings made by Eugene Science with the United States Securities and Exchange Commission (available at www.sec.gov), press releases or oral statements made with the approval of an authorized executive officer of Eugene Science. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions. Reference is hereby made to Eugene Science's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 for information regarding those factors and conditions. Among the important factors that could cause actual results to differ materially from management's projections, estimates and expectations include, but are not limited to: changing economic influences in the nutraceutical industry; dependence on key personnel; actions of third parties; the market for nutraceutical products containing Eugene Science's CZ™ ingredient, and availability of adequate financing. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as of the date of this press release. Eugene Science undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

Contact Information

  • Investor Relations:

    Mirador Consulting, Inc.
    Rich Miller
    (561) 989-3600

    Capital Group Communications
    Richard Carpenter or Mark Bernhard
    email: Email Contact
    (415) 332-7200