Functional Technologies Corp.
TSX VENTURE : FEB

Functional Technologies Corp.

February 26, 2009 08:00 ET

Functional Technologies Expands Ethyl Carbamate Reducing Yeast Portfolio

Improving the Health Profile of Yeast, a Major Food Ingredient

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 26, 2009) - Functional Technologies Corp. (TSX VENTURE:FEB) is pleased to announce the exclusive licensing of an additional proprietary urea-degrading yeast technology. This second-generation urea-degrading yeast technology has a new mechanism of action which is unique but complementary to the company's existing, first-generation, urea-degrading Phyterra Yeast products. Urea is an important pre-curser in the formation of ethyl carbamate (also known as urethane) in fermented foods and beverages. Ethyl carbamate is classified by the World Health Organization as a Group 2A carcinogen - the same carcinogen class as lead, mercury, acrylamide and diesel exhaust.

"This licensing of this synergistic technology entrenches our leadership position in the development and commercialization of functional yeast to reduce ethyl carbamate in fermented foods and beverages," commented Functional Technologies' President and COO, Garth Greenham. "This new urea-degrading platform complements our existing technology by working through a unique mechanism that will allow for optimal efficacy in the prevention of ethyl carbamate. It also should provide us with another layer of intellectual property protection which is fundamental to our position as an industry-leader in functional yeast technology within the global yeast market."

The second-generation urea-degrading yeast technology has a unique mechanism of action which allows it to effectively metabolize and eliminate urea external to the yeast cell. Functional Technologies' first-generation urea-degrading products are highly efficacious in their ability to metabolize and eliminate urea within the yeast cell itself and have demonstrated reductions of ethyl carbamate levels in wine of up to 90% versus control yeasts in commercial field tests. The company's first generation yeast technology has also demonstrated significant efficacy in reducing ethyl carbamate levels, in a broad range of other fermented foods and beverages, including brandy, sake, and bread.

Mr. Greenham added, "Functional Technologies looks forward to combining these technologies in order to provide a seamless, powerful and preventative management tool for the world's wine, beverage and food industries."

Under the license, the company holds the exclusive rights to commercially utilize the technology for the life of the last patent relating to the technology world wide. The license is not subject to any restrictions affecting commercial utilization.

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 reclassified by the World Health Organization up to a Group 2A carcinogen - the same carcinogen class as lead, mercury, acrylamide and diesel exhaust), from wines and other widely consumed fermented beverages and foods. As part of its core focus of improving and enhancing the quality of the global food and beverage supply, Functional Technologies has recently expanded its yeast portfolio through the licensing of proprietary hydrogen sulfide (H2S) reducing technology from the University of California at Davis. H2S is one of the most common occurring sensory defects, and a widespread problem, in wine production. In addition Functional Technologies, through its wholly-owned subsidiary Phyterra Bio Inc., is developing a platform of proprietary biological products, for animal health, utilizing proprietary science in the field of micro-algae.

For further company information, please access our website at www.functionaltechcorp.com.

This news release contains forward-looking statements as defined under applicable securities legislation. The forward-looking statements are made as of the date hereof, and the company has no intention to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise except as required by law. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such statements. Such factors include, among others, the company's stage of development, lack of product revenues and no assurance of product acceptance in the market, additional capital requirements, the ability to protect its intellectual property and dependence upon key personnel. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. Additional risks and uncertainties relating to the company and its business can be found in the "Risks and Uncertainties" section of its most recent Management's Discussion & Analysis filed on SEDAR (www.sedar.com).

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

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