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Biothera’s Beta Glucan Patents Upheld

Patent Infringement Lawsuit Against Cypress Systems Settled
Lawsuits also pending against Norway’s Biotec Pharmacon ASA and Immunocorp.

EAGAN, MN – October 10, 2005 – Cypress Systems Inc. has agreed to stop selling yeast beta glucan and has acknowledged the validity of Biothera’s patents as part of the settlement of a lawsuit filed in federal district court last March.

The settlement, which marks the third time that Biothera has successfully enforced its patents through litigation, is significant for several reasons. “It adds clarity to the market for beta glucan products, provides Biothera with new sales and further strengthens our position in two pending patent infringement lawsuits,” said Richard Mueller, Biothera president and chief executive officer.

Biothera also has sued Biotec Pharmacon ASA, a Tromsø, Norway manufacturer of the immune health supplement Immutol®, and the product’s distributor, Immunocorp. A third lawsuit was filed against Fenchem Enterprises, Ltd., a Chinese ingredient company.

Settlement Terms
As part of the terms of the settlement, Cypress Systems has agreed to give Biothera its customer list and invoices for the past two years, its supplier invoices, and will assign its “Beta Precise” trademark to Biothera. Cypress Systems has already informed its customers that it will no longer sell beta glucan products.

“We are pleased with the settlement and confident that we will continue to successfully enforce our patent rights,” said Mueller. “We have already been in contact with many of Cypress Systems’ customers and have begun to provide them with our BetaRightÒ 3-6 or WGPÒ 3-6 products.”

Biothera sued Cypress Systems, a Fresno, California company, for violation of patents that provide Biothera with the exclusive right to manufacture and sell yeast beta glucan as a dietary supplement. Biothera has more than 40 U.S. patents and patents pending and has additional patents in more than 20 countries.

“This is an important legal victory that further strengthens our ability to protect our products and markets against patent infringers,” said Daniel Conners, Biothera chairman and founder.

About Biothera, the Immune Health Company
Biothera is a biotechnology company dedicated to improving immune health. The company's primary focus is developing pharmaceuticals whose unique mechanism of action engages immune cells not normally involved in the fight against cancer. In addition, Biothera’s healthcare group manufactures and markets food-grade immune-enhancing ingredients for the nutritional supplement, functional food, cosmetic and the animal feed and nutrition markets.

David Walsh
VP, Communications
Biothera, the Immune Health Company

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