SemBioSys reacquires rights to DermaSphere(R) Oleosome Technology

CALGARY, Dec 22, 2006 /PRNewswire-FirstCall via COMTEX/ -- SemBioSys Genetics Inc. (CA:SBS: news, chart, profile) , a biotechnology company developing a broad pipeline of protein-based pharmaceuticals and non-pharmaceutical products, today announced the conclusion of its relationship with Lonza Inc. for the manufacture and sale of its DermaSphere(R) Oleosome Technology. SemBioSys will continue to manufacture and supply DermaSphere(R) to the personal care market to address the burgeoning demand for the technology and the first-generation oleosome product, Natrulon(R)-OSF, launched by Lonza in 2004.

SemBioSys and Lonza jointly agreed, through a Letter of Intent, that concluding their License Agreement was in the best interest of the customers currently using DermaSphere(R) in their formulations and for the long-term success of the product in the personal care market. While the natural and multifunctional properties of DermaSphere(R) met with positive initial market response, a readjustment in Lonza's strategic priorities and delays from the contract manufacturer in scaling up production to meet increasing demand led to a de-emphasis of the product in Lonza's portfolio.

"We are encouraged by the positive initial market response and prospects for early adoption by leading personal care companies. We believe that the re-acquisition of the DermaSphere(R) rights will allow us to better service the needs of the personal care market and enable SemBioSys to maximize the value of the product," said Andrew Baum, President and CEO. "Lonza was instrumental in advancing DermaSphere(R) from a development stage product to full commercialization. SemBioSys will meet near-term demand for our customers' development quantities of product from our pilot plant facility while we scale-up manufacturing, which we anticipate to be fully operational in the middle of 2007."

SemBioSys and Lonza have made arrangements to ensure a seamless transition to existing customers on product supply. Under the new arrangement with Lonza, customers will continue to receive the full benefit of the technical achievements and new intellectual property created by Lonza. SemBioSys has re-acquired the rights to the technology from Lonza for a one-time payment. With the re-acquisition of the royalty-free rights to DermaSphere(R), SemBioSys is free to pursue strategic partnerships that support its vision to create and commercialize a broad portfolio of DermaSphere(R)-based products and co-products in global personal care markets. Discussions with partners are already underway.

About DermaSphere(R) Oleosome Technology
Invented by SemBioSys Genetics Inc., the DermaSphere(R) Oleosome Technology is an aqueous extraction process to harvest oleosomes from oilseed in the form of a simple, cosmetically elegant oil-in-water emulsion. The emulsion is comprised of naturally occurring oil droplets, oleosomes, in which the oil is surrounded by a shell of phospholipids and unique proteins called oleosin. Oleosomes are unique among specialty natural ingredients, offering multiple properties that provide significant product differentiation and consumer benefits. These features include powerful emulsification across a wide HLB range (5-15), strong occlusivity equal to or superior to traditional occlusive agents (petrolatum, mineral oil), excellent skin emolliency and natural active constituents (vitamin E and plant sterols). An oleosome emulsion can be used as the entire non-active portion of the oil phase of a typical cosmetic formulation and can be prepared under "cold process" conditions, enabling significant savings in time, energy and inventory management. Oleosomes can also be "loaded" with cosmeceutical actives, lending itself as a natural carrier/delivery system for controlled release of actives to the skin. These unique attributes allow the DermaSphere(R) Oleosome Technology to be used in a wide range of applications including moisturizing and exfoliating creams and lotions, sunscreens, ointments, cosmetics, and hand and body washes.

About SemBioSys Genetics Inc. (
Calgary, Alberta-based SemBioSys Genetics Inc. is a biotechnology company focused on the development, commercialization and production of biopharmaceuticals and non-pharmaceutical products based on its plant genetic engineering skills and proprietary oilbody-oleosin technology platform - the Stratosome(TM) Biologics System. Its two lead pharmaceutical product candidates are insulin and a developmental stage cardiovascular drug called Apo AI. It also has a series of non-pharmaceutical products addressing animal and aquaculture health, nutritional oils and human topical markets (personal care and dermatology).

This press release contains forward-looking statements, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws, which reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time-to-time in the Company's ongoing filings with the Canadian securities regulatory authorities which filings can be found at Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise.

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