SemBioSys Genetics Inc. (TSX:SBS), a biotechnology company developing a broad pipeline of protein-based
pharmaceutical and non-pharmaceutical products, today announced its operational and financial results for the 2004 fiscal year.

2004 Highlights

• Executed and announced funded product development and license agreements with Syngenta Participations AG, Dow AgroSciences LLC, Lonza, Inc., and Arcadia BioSciences, Inc. following the execution of an agreement with Martek Biosciences Corporation in Q4 2003

• Demonstrated bioequivalence of insulin produced in proof-of-concept model

• Achieved commercial expression of Apo AI in proof-of-concept model

• Completed initial public offering for total gross proceeds of $20,125,000 - including the exercise of the over-allotment option in Q1 2005

• Subsequent to year-end, demonstrated efficacy of safflower produced ImmunoSphere(TM) Feed Additive against viral shrimp disease in tank trials

"In 2004, we made significant progress deploying our oilbody/oleosin technology to address the scale, capital and cost issues that increasingly impede the commercialization of protein-based products," said Andrew Baum, President and CEO, SemBioSys. "The flexibility of our platform will allow us to capture significant value in the longer term through the production of pharmaceuticals like insulin and a developmental cardiovascular drug called Apo AI, while at the same time allowing us to achieve shorter term sustainability by enabling the development of our non-pharmaceutical products through funded agreements with our partners."

Financials

Total contract research and license fee revenues for the year ended December 31, 2004 were $1.5 million compared to $4.9 million for the year ended December 31, 2003. The difference in 2004 is attributed to the recognition of US$3.75 million from a technology licensing agreement with Syngenta in November 2003.

Total expenditures for the year ended December 31, 2004 were $7.2 million compared to $7.0 million for the previous year. Gross research and development expenses were $4.4 million for the 2004 fiscal year, up from $4.3 million for the 2003 fiscal year.

General and administrative expenses for the year ended December 31, 2004 were $2.9 million up from $2.6 million for 2003, primarily due to fees related to negotiating collaborative research and technology license agreements.

Intellectual property costs decreased $0.3 million for year ended December 31, 2004 compared with the prior year. There were significant legal fees incurred in Q4 2003 as a result of the execution of a number of significant agreements.

Cost recoveries decreased by $0.3 million for the year ended December 31, 2004 compared to the prior year primarily as a result of the timing of milestone payments under certain agreements.

Net loss for the year ended December 31, 2004 was $5.7 million or ($0.95) per share, compared to a net loss of $1.8 million or ($0.33) per share for 2003.

As at December 31, 2004 the Company had cash and cash equivalents totaling $18.8 million compared to $9.4 million at December 31, 2003.

Outlook

The Company's priorities for 2005 are to achieve commercial levels of expression of its pharmaceutical products, insulin and Apo AI, in safflower and to advance the development of its non-pharmaceutical ImmunoSphere(TM) and DHA rich safflower oil programs. The upcoming milestone events expected in 2005 include:

• Achievement of commercial levels of insulin expression in safflower

• Achievement of commercial levels of Apo AI expression in safflower

• First royalties from sales of the DermaSphere(TM) product

• Achievement of milestones in the Dow AgroSciences and Arcadia development programs

• Initiation of a new non-pharmaceutical product development program

• Initiation of a new pharmaceutical product development program

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.