Functional Technologies Corp.
TSX VENTURE : FEB

Functional Technologies Corp.

June 11, 2008 08:00 ET

Functional Technologies Announces National Research Council Contribution to Support Development of Proprietary Yeasts

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 11, 2008) - Functional Technologies Corp. (TSX VENTURE:FEB) is pleased to announce that the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP) has provided a contribution for the Company's commercial development of its proprietary urea-degrading yeast products. With the anticipated launch of the Company's first proprietary yeasts, the NRC-IRAP contribution will be utilized to develop next generation yeast products to continuously improve upon and diversify its proprietary product portfolio. Functional Technologies' yeast products are designed to substantially reduce the formation of ethyl carbamate (also known as urethane) in wines and other fermented beverages and foods. Ethyl carbamate is a known animal carcinogen and is classified by the World Health Organization as a Group 2A carcinogen - probably carcinogenic to humans.

The NRC-IRAP contribution will provide up to $190,000 in support for Functional Technologies' ongoing development of its proprietary Phyterra brand wine and sake yeasts. In addition the Company has previously received funding from the Atlantic Innovation Fund (AIF). To date, Functional Technologies has received non-dilutive government cash and/or cash commitments of approximately $2,000,000 for the development of its proprietary yeast products.

"For companies, such as ours, emerging from the product research and development stage toward full scale production and commercialization, these Government programs with the jobs they create, and the technologies that emerge as a result, can have a strong impact on the value of the company. They are particularly imperative moving forward as we seek to leverage our investment dollars in developing future projected revenue generating assets. Therefore, we are very pleased that Canada's premier public research and development organization, the NRC, has joined the AIF in their financial support of our proprietary yeast technology," stated Howard Louie, CEO of Functional Technologies.

"The support of these organizations is a reflection on the importance of Functional Technologies' ongoing development of its urea-degrading yeast technology, its recognized human health benefits in substantially reducing ethyl carbamate in wines and other fermented foods and beverages, and its realizable commercial value," adds Garth Greenham, COO of Functional Technologies.

NRC-IRAP provides a range of both technical and business oriented advisory services along with potential financial support to growth-oriented, small and medium-sized Canadian enterprises. Working directly with these clients, NRC-IRAP supports innovative research and development and commercialization of new products and services.

About Functional Technologies Corp.

Functional Technologies is a functional foods and biological health products company that develops and commercializes advanced yeast products, and other novel biological products, for the food and the health care industries. The Company is currently commercializing a platform yeast technology that substantially reduces the formation of ethyl carbamate (also known as urethane, which has been recently re-classified by the World Health Organization up to a Group 2A carcinogen - probably carcinogenic to humans), from wines and other fermented beverages and foods. Functional Technologies has licensed the exclusive worldwide rights to this technology from The University of British Columbia (UBC). The Company is expanding the development of next generation products in this area, as well as evaluating new yeast based technologies with broad commercial market applications. In addition Functional Technologies, through its wholly-owned subsidiary, is developing a platform of proprietary biological products for the animal and aquaculture health care markets utilizing proprietary science in the field of micro-algae.

ON BEHALF OF THE BOARD

Geoff Lee, President

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

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