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San Leandro, CA, July 10, 2001 --
Sepragen Corporation (OTC BB: SPGNA), a provider of patented and proven
technology, applications and equipment for separation and purification in the
nutraceutical and biotech industries, today announced that management is
executing a strategic plan to restructure its existing business. Key to this
plan is the separation and spin-out of its biotech and nutraceutical businesses.
Vinit Saxena, Sepragen's chairman and CEO, said, "Our decision is
prompted by the fact that each of these businesses represents a very large
opportunity for growth and each will require separate financing and management
focus."
The biotech component will focus on providing a proprietary line of systems
and consumables for high throughput clinical development and manufacturing of
biological drugs. The production tools are based on a patented, proven
technology currently utilized in 12 FDA approved drugs. Top tier customers such
as Human Genome Sciences, Schering-Plough Corp. and Baxter International use the
tools to increase production and reduce time to market.
Mr. Saxena went on to say, "Recent industry reports indicate that the
biotech industry faces a critical shortage of manufacturing capacity. This
shortfall is expected to become acute as an increasing number of drug leads
enter the development pipeline."
The nutraceutical component will focus on providing high value nutraceutical
ingredients for use in a variety of healthful beverages, performance nutrition,
geriatric foods, and infant formula. This business will provide technology
solutions for new ingredients in the production of the next generation of
functional nutrients including extracting high value proteins from whey,
isolation of isoflavones from soy and modulation of flavors. Customers currently
include Anchor Products and Carbery Foods.
Saxena continued, "functional foods are growing in importance. The
popularity of these products such as health promoting beverages, 'performance'
foods, 'geriatric' foods, and improved infant formulae is causing rapid growth
in the whey protein market. Sepragen is poised to take advantage of these two
exciting opportunities."
The company has retained the services of financial advisors to assist with
the capitalization and strategic restructuring of the biotech and nutraceutical
businesses.
Sepragen is a leading supplier of separation process technology, equipment
and consumables to the biotechnology and nutraceutical industries. In addition
to its biotech drug separation business, the Company has developed patented
applications that provide large market opportunities in the food and beverage
industry, including debittering citrus juices, extracting isoflavone (plant
estrogen) from soy as well as extracting proteins from whey. The Company holds
over 14 issued patents relating to its core technology.
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The statements in this release that relate to future events or
performance, statements about growth, future regulatory clearances, levels of sales and
market size and future manufacturing capacity and efficiencies are forward-looking
statements that involve risks and uncertainties, including risks associated with
uncertainties related to the development of markets for and commercial acceptance of the
company's products and services, the availability of components, competitors' product
introductions and other risks identified in the company's SEC filings. Actual results may
differ from those described in these forward-looking statements. Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak only as of the
date hereof.
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