Calgary, Alberta
January 31, 2002

Repayable contribution will allow company to expand its technology platform to address antibody production

SemBioSys Genetics Inc., a Calgary-based biotechnology company, announced today that it will
receive a repayable $CAN2.4 million investment from AVAC. The funds will be used by SemBioSys to fully develop its technology platform to address the production of monoclonal antibodies (mABs).

"We have already demonstrated the utility of our oleosin/oil body technology platform for the production of many types of proteins," said SemBioSys President and Chief Executive Officer Andrew Baum. "With this funding we are expanding our technology portfolio to include production of monoclonal antibodies in a manner that fully leverages our technology platform." Monoclonal antibodies are pharmaceutical proteins being developed for the treatment of a wide array of diseases including
arthritis, many types of cancer, cardiovascular disease and psoriasis. Manufacturing of these products is proving a rate limiting step in fully commercializing many antibodies, and some experts predict that manufacturing demand will outstrip supply by two to four times over the next few years. "We will use our technology to allow biotechnology and pharmaceutical companies to cost effectively meet their expanding need for the production of this exciting new type of drug," said Baum.

"We are pleased with the opportunity to support SemBioSys in developing its antibody platform," commented Ross Bricker, Senior Investment Manager for AVAC Ltd. "The Company's pacesetting advancements in molecular farming will not only benefit Alberta's value-added industry but will provide an array of pharmaceuticals such as antibodies and vaccines that have been too expensive for medical use in the past."

The announcement of the investment by AVAC follows the official opening last month of SemBioSys' 25,000 square foot integrated facility containing the Company's corporate headquarters, research and development facilities and pilot plant. In November of last year SemBioSys announced that it would receive a CAN $5,522,607 repayable contribution from Technology Partnerships Canada (TPC). SemBioSys completed a private Series A financing with a syndicate led by Bay City Capital through
its North American Nutrition and Agribusiness Fund in November of 2000.

SemBioSys is using a variety of genetic engineering technologies to express proteins in the seeds of safflower. Embodiments of the technology enable the attachment of proteins to oil bodies, natural oil storage organelles found in oilseeds, through either direct targeting or affinity capture. Taking advantage of the simple physical principle that oil is lighter than water, oil bodies can be easily separated from the majority of other seed components. Combined with low-cost production of plant-based systems, this provides a cost-effective solution for bulk protein production and purification. The technology also offers a unique platform for the oral and topical delivery of bioactive peptides and proteins. The Company operates a pilot manufacturing facility that can deliver oil body-based products and purified protein at scale.

SemBioSys' has established partnerships with Syngenta, Metabolic Pharmaceuticals, a multinational fine chemical manufacturer and several pharmaceutical companies. In addition to Bay City Capital, investors include Business Development Bank of Canada, Dow AgroSciences Canada Inc., Royal Bank Capital Partners, University Technologies International, Ventures West, and scientific founder Dr. Maurice Moloney.

AVAC Ltd., invests in innovative ideas that add value to agricultural commodities. They invest through coaching, knowledge, contacts and financial resources. AVAC's mission is to facilitate the linkage of knowledge and investment with science and enterprise to expand Alberta's value-added agricultural industry to $20 billion by 2010. Created in 1997, AVAC has to date committed over $12 million dollars to agrivalue initiatives.