IRI Separation Technologies Inc.

IRI Separation Technologies Inc.

August 25, 2006 16:01 ET

IRI Separation Technologies Inc., Formerly Immuno Research Inc., Announces Expansion of the Lakota Supply Agreement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 24, 2006) - John Mason, President and CEO of IRI Separation Technologies Inc. (TSX VENTURE:IRI), is pleased to announce the expansion of the Lakota Antibody Products Inc. Supply Agreement. Under the terms of the new agreement, Lakota Antibody will purchase specific immunoglobulin (Ig Specific) as well as the general Immunoglobulin (Ig) as per the previous agreement. The Ig Specific will be purchased by Lakota Antibody at a cost of 200 percent of the total production costs.

"I am very pleased with the changes in the Lakota Antibody contract," said John Mason, President and CEO. "This offers IRI Separation immediate entry into the Specifics market - two years ahead of schedule. The processing of the Ig Specific eggs from 75,000 dedicated birds will increase the productivity of our egg breaking facility in Airdrie by at least two shifts per week. We are now moving forward with developing our nutraceutical and biotechnology businesses, including the fulfillment of the five-year sales contract with Lakota Antibody. We are all very excited to begin the process of having dedicated flocks of birds and a market position with Ig Specific antibodies."

The amendments to the contract are as follows:

1) The Lakota Supply contract has been amended to reflect the name change of both Immuno Research Inc. to IRI Separation Technologies Inc. and the Lakota Supply Agreement to Lakota Antibody Products Inc. Supply Agreement, this will more accurately reflect the companies' operations.

2) The products contracted now include Ig Specific as well as Ig General - Broad Spectrum antibodies. The Ig Specifics requested by Lakota will require the development and registration of the required innoculants, and all costs associated with doing so will be covered by Lakota Antibody. Initial production will encompass three specific antibodies while research will be ongoing for a fourth.

Lakota Antibody will cover all costs associated with the dedicated flocks and all eggs produced by the dedicated flocks will be processed into Ig Specifics and purchased by Lakota Antibody at 200 percent of the total production costs.

The Alberta Egg Producers Co-operative, major shareholders through the acquisition of the Alberta Group, have offered to supply, in due course, three segregated flocks of birds (25,000 birds per flock) to produce the eggs required for three Ig Specifics. A fourth Ig Specific requires further research on the inoculant, prior to the dedication of a specific flock. This research will be undertaken using approximately 100 birds and laboratory extraction and verification procedures.

3) Exclusivity to Lakota Antibody has been extended to include Ig Specific antibodies and the use of all Ig antibodies in human pharmaceutical applications.

4) Territory now includes United States, Canada, Europe, China, Korea, Singapore, Malaysia and Taiwan (the "Permitted Territories").

5) Pricing remains the same for Ig Generals at $300 per kilo for 50 percent Ig content.

6) Delivery and minimum purchases to retain exclusivity remain the same for Ig Generals at 60,000 kilo per annum after June 1, 2007. The date of the first delivery of 1,000 kilograms has been changed to December 1, 2006.

About IRI Separation Technologies

IRI Separation Technologies (TSX VENTURE:IRI) is a biotechnology company that specializes in the extraction, development and commercialization of monoclonal and polyclonal immunoglobulin antibodies for virus and bacteria related health issues. Intended for use as a nutraceutical for human consumption, the antibodies are derived from bovine whey and chicken eggs. The immunoglobulin antibodies are intended for both the general and specific antibody market.

On behalf of the Board of Directors, John Mason, President and CEO

Certain statements included in this news release may be "forward-looking statements" as defined in securities legislation in the United States and certain jurisdictions in Canada. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. There can be no assurances that the expectations reflected in such forward looking statements will prove to have been correct, although they are currently believed to be reasonable. Management cautions that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statement. Please refer to our publicly filed documents for a more complete discussion of risk factors to which our company is subject. All forward-looking statements herein are expressly qualified in their entirety by this cautionary statement. IRI Separation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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

Contact Information

  • Ascenta Capital Partners Inc.
    Jim Glass
    Investor Relations
    (604) 684-4743 ext. 25 or Toll Free: 1-866-684-4743 ext. 25
    IRI Separation Technologies Inc.
    John Mason
    (604) 807-8694
    (604) 926-1485 (FAX)