SemBioSys Genetics Inc., a Canadian biotechnology company, announced today that it has executed a development agreement with Arcadia Biosciences, Inc. to co-develop value-added specialty oil products with potential nutraceutical applications. Under the terms of the multi-year agreement, SemBioSys will use its safflower biotechnology capabilities to develop safflower oils rich with the omega 6 fatty acid gamma linolenic acid (GLA) for Arcadia. SemBioSys will receive research payments, milestone payments and royalties on new product sales. The announcement follows the announcement of an agreement with Martek Biosciences in December of 2003 to develop a safflower oil rich with the omega 3 fatty acid Docosahexaenoic acid (DHA).

"We are pleased to be working with Arcadia on this exciting project" said Andrew Baum, president and CEO of SemBioSys. "It further validates the utility and value of our safflower biotechnology capabilities and complements the SemBioSys project with Martek Biosciences to develop a DHA rich safflower oil."

This is the fifth funded development agreement announced by SemBioSys in the last six months. In December, SemBioSys announced that it had executed a development agreement with Martek Biosciences Corporation to co-develop value-added specialty oil products (DHA containing safflower oil) with potential nutraceutical applications. In February, SemBioSys announced that it had entered into an agreement with Syngenta for access to SemBioSys' proprietary oilbody based Stratosome(TM) Biologics and StratoCapture(TM) Purification Systems for the development of Syngenta's biologic products.

Earlier this month, SemBioSys announced that it has entered into a licensing, marketing and sale agreement with Lonza, Inc. for global rights to SemBioSys' DermaSphere(TM) Ingredient System for use in personal care markets. As well, SemBioSys announced it executed a feasibility agreement with Dow AgroSciences LLC, for the production of an animal vaccine in plants using the Stratosome(TM) Biologics System.

Based in Calgary, Alberta, SemBioSys Genetics Inc. is a privately held biotechnology company focused on the development of high-value protein and oilbody-based products using its proprietary oilbody-based technology – the Stratosome(TM) Biologics System.

Based in Davis, California, Arcadia Biosciences is an agricultural biotechnology company focused on the development of profitable agricultural products that improve the environment and enhance human health.

DermaSphere and Stratosome are trademarks of SemBioSys Genetics Inc.