TMX group

- Canadian Biotechnology Company Receives Final Milestone Payment -

TSX symbol: SBS

CALGARY, Oct. 13 /CNW/ - SemBioSys Genetics Inc. (TSX:SBS), a
biotechnology company developing a broad pipeline of protein-based
pharmaceutical and non-pharmaceutical products, today announced it
successfully completed a milestone-based feasibility agreement with Dow
AgroSciences LLC. The agreement evaluated the utility of the Stratosome(TM)
Biologics System for production of an experimental animal vaccine. Financial
details of the agreement were not disclosed.
"The completion of the program with Dow AgroSciences demonstrates our
ability to execute," said Andrew Baum, President and CEO of SemBioSys Genetics
Inc. "We continue to demonstrate the broad commercial utility of our   
oilbody-oleosin technology and the ability of the SemBioSys organization to
achieve its objectives on schedule. The completion of the Dow AgroSciences
program demonstrates two important aspects of the Stratosome(TM) Biologics
System from which we can derive value; its flexibility to generate simple or
complex proteins, and its ability to address protein recovery and purification
simultaneously with bulk protein production."
During the program, SemBioSys and Dow AgroSciences established the
applicability of the Stratosome(TM) Biologics System to produce plant derived
proteins for use in the manufacture of animal vaccines. The collaborative
research project applied the Stratosome(TM) Biologics System for the
production, purification and formulation of an animal vaccine. Dow
AgroSciences is now evaluating the efficacy of the vaccine in animal trials,
and depending on the results, it has the option to initiate negotiations
toward a funded program with SemBioSys to develop the animal vaccine product.
SemBioSys is developing other animal health products with the
Stratosome(TM) Biologics System including the ImmunoSphere(TM) Feed Additive.
ImmunoSphere(TM) targets the US$18 billion shrimp production market. Viral
disease is a major threat to commercial shrimp aquaculture production.
ImmunoSphere(TM) is an immunostimulatory protein feed additive that enhances
disease resistance in shrimp.

About SemBioSys Genetics Inc. (www.sembiosys.com)
Calgary, Alberta-based SemBioSys Genetics Inc. is a biotechnology company
focused on the development, commercialization and production of protein-based
pharmaceuticals 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 products are
insulin and a developmental cardiovascular drug called Apo AI. It also has a
series of non-pharmaceutical products addressing animal health, industrial and
human topical markets. SemBioSys currently has five major funded partnership
agreements with Syngenta Participations AG, Martek Biosciences Corporation,
Lonza Inc., Dow AgroSciences LLC and Arcadia Biosciences, Inc.

About Dow AgroSciences LLC. (www.dowagro.com)
Dow AgroSciences LLC, based in Indianapolis, Indiana, USA, is a global
leader in providing pest management and biotechnology products that improve
the quality and quantity of the earth's food supply and contribute to the
health and quality of life of the world's growing population. Dow AgroSciences
has approximately 5,500 people in more than 50 countries dedicated to its
business, and has worldwide sales of US $3.4 billion. Dow AgroSciences is a
wholly owned subsidiary of The Dow Chemical Company. For more information
about Dow AgroSciences, visit www.dowagro.com.

Stratosome and ImmunoSphere are trademarks of SemBioSys Genetics Inc.

Except for historical information, this press release may contain      
forward-looking statements, which reflect the Company's current expectation
regarding future events. These forward-looking statements involve risk and
uncertainties, which may cause but are 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 quarterly and annual reporting.

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