PharmEng International Inc.
TSX VENTURE : PII

PharmEng International Inc.

March 21, 2006 12:00 ET

Euro-Pharm Selects PharmEng As Private Label Supplier

TORONTO, ONTARIO--(CCNMatthews - March 21, 2006) - PharmEng International Inc. (TSX VENTURE:PII), today announced that Keata Pharma Inc., PharmEng's wholly-owned contract manufacturing subsidiary, has entered into a three-year supply agreement with Euro-Pharm International Canada Inc. to provide commercial manufacturing and pharmaceutical development services to Euro-Pharm estimated to exceed $1.0 m annually.

Euro-Pharm has selected Keata as the contract or private label manufacturer covering ten (10) separate products with an additional six (6) products in negotiation. The supply agreement will be complimented with a quality agreement in accordance with Canadian GMP (good manufacturing practices).

"Our company regards this initial contract as a starting point for our relationship with Keata. With the successful delivery of these products, we are ready to move substantial additional business in their direction," explains Nello Caltagirone, President of Euro-Pharm International Canada Inc.

"Euro-Pharm is an important new customer. We intend to become their principal supplier as we grow this opportunity into a multi-million dollar annual commitment," notes Bernie Boudreau, President of Keata Pharma Inc.

About PharmEng International Inc.

PharmEng International Inc., headquartered in Toronto, Canada, is a full-service consulting and contract manufacturing company that serves the pharmaceutical and biotechnology industries in North America and internationally. Consulting services include project management, engineering, GMP, validation, calibration, regulatory compliance and certified training services. Contract manufacturing includes pharmaceutical support, formulation development, analytical methods development, laboratory testing, and finished solid dosage and liquid products. Building on a foundation of over eight years of successful consulting, PharmEng in combination with its wholly owned manufacturing subsidiary, Keata, has evolved into one of Canada's leading pharmaceutical companies. PharmEng's shares trade on the TSX Venture Exchange under the symbol PII. For more information about PharmEng, please visit the Company's website at www.pharmeng.com.

About Euro-Pharm International Canada Inc.

EURO-PHARM International Canada Inc., headquartered in Montreal, is a privately held Canadian pharmaceutical company. Incorporated in 1996, EURO-PHARM distributes its products all across Canada and is rapidly expanding its export markets. Its product range includes analgesics, calcium and mineral supplements, vitamin supplements and laxatives. EURO-PHARM has its own marketing team, sales force, Regulatory Affairs and QC/QA departments which enable EURO-PHARM to develop and market unique products. Its rapidly expanding business and expected future needs motivate EURO-PHARM to enter in this new partnership.

Certain statements in this press release may include "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of PharmEng to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements use such words as "may", "will", "expect", "anticipate", "project", "believe", "plan", and other similar terminology. The risks and uncertainties are detailed from time to time in reports filed by PharmEng with the securities regulatory authorities in all of the provinces and territories of Canada. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of PharmEng to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

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