Functional Technologies Corp.
TSX VENTURE : FEB

Functional Technologies Corp.

November 16, 2011 07:00 ET

Functional Technologies Commences Confirmatory Food Trials With Acrylamide-Preventing Yeasts in Non-Bread, Starch-Based Foods for European Food Processor

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 16, 2011) - Functional Technologies Corp. (TSX VENTURE:FEB) (the "Company") is pleased to announce it has commenced evaluation food trials for a leading European producer of intermediary starch-based food products including extruded snack food pellets (the "Collaborator"), which are purchased and integrated by numerous downstream food manufacturers into a variety of other food products. These downstream food manufacturers represent many brand leaders in the processed food industries, and the Collaborator has established its global position over decades.

These trials are being conducted to confirm the efficacy of the Company's proprietary acrylamide-preventing (AP) yeast technology in a variety of materials received from the Collaborator, used in non-bread related food applications. Functional Technologies' recently announced third generation AP yeast technology will be employed, with the results expected to not only build on but also surpass the level of, and timing required for, efficacy that was previously attained in the products of another leading European food producer using the Company's first generation technology. The determination of efficacy will be conducted under simulated commercial conditions and product manufacturing protocols specified by the Collaborator, in which yeast is both traditionally and non-traditionally employed. This provides Functional Technologies with valuable opportunities to optimize the conditions and parameters under which its proprietary AP yeast platform is most effective. The collaboration also illustrates the efforts and willingness of major global food producers to seek and adopt innovative acrylamide-mitigating strategies and solutions in their processing practices.

"Functional Technologies continues to generate validating commercial interest in its yeast platforms, endorsing the appeal of its acrylamide-preventing technologies as a potentially valuable strategy to mitigate the risk of this food contaminant," said Howard Louie, CEO and chairman of Functional Technologies. "This collaboration also speaks to the opportunity for the Company's proprietary yeasts to have critical impact in a wide range of food applications, which is enabled in part by the platform nature of our technologies in being able to address any number of yeast strains to suit the various needs of end-user food producers across multiple sectors."

Forward-Looking Information

This news release contains forward-looking information (within the meaning of Canadian securities legislation) about Functional Technologies Inc. and its future plans. Forward-looking information relate to future events or future performance and reflect management's expectations or beliefs regarding future events rather than historical facts, and in this news release include the statements (the "forward-looking statements") regarding: (1) the potential for one or more of the Company's existing or potential licensees/collaborative partnerships to progress, including into commercial relationships formed with global firms in the food sectors; (2) ability for the Company's yeast technologies to reduce acrylamide in novel food applications under commercial conditions (3) the expectation that such relationships will enable the Company to accelerate the commercial progression of the Company's yeast products in global markets. The forward-looking statements in this news release are subject to various risks, uncertainties and other factors that could cause the Company's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. These risks, uncertainties and other factors include, without limitation, uncertainty as to the Company's ability to achieve the goals and satisfy the assumptions of management; uncertainty as to the demand for the Company's products and the Company's ability to meet such demand; and general economic factors and other factors that may be beyond the control of the Company. Forward-looking statements are based on the opinions and expectations of the Company's management at the time they are made, and the Company does not assume any obligation, beyond what is required under applicable Canadian securities legislation, to update its forward-looking statements if those opinions or expectations, or other circumstances, should change. Reference to the section entitled "Risks and Uncertainties" commencing on page 19 of the Company's management's discussion and analysis relating to the fiscal quarter ended May 31, 2011, which is available on SEDAR at www.sedar.com.

About Functional Technologies Corp.

Functional Technologies develops and commercializes proprietary, advanced yeast-based solutions to significant challenges in the food, beverage and healthcare industries. The Company's platform improves the performance of innate yeast functions, and prevents the formation of naturally occurring toxins and contaminants that either affect final product quality or are classified by the World Health Organization as probable human carcinogens. Functional Technologies' lead technologies include yeasts that prevent and reduce the formation of the foul-smelling hydrogen sulphide (H2S) and the carcinogens acrylamide and ethyl carbamate (more commonly known as urethane), by-products of food and beverage processing. These contaminants are found in many commonly consumed items, such as fermented food products and alcoholic beverages, and baked and fried foods. With a head office in Vancouver, Functional Technologies Corp. has R&D operations in Prince Edward Island and Europe, as well as a U.S. sales office in Napa Valley, California. For more information, please visit our website at www.functionaltechcorp.com.

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