Canadian biotechnology company demonstrates bio-equivalence of plant produced insulin

SemBioSys Genetics Inc. (TSX:SBS), a biotechnology company developing a broad pipeline of protein-based pharmaceutical and non-pharmaceutical products, today reported preclinical results of plant-produced insulin from the Company's proprietary Stratosome(TM) Biologics System. SemBioSys' research team led by Dr. Maurice Moloney, will publish the results in the January 2006 edition of the Plant Biotechnology Journal in an article titled, "Transgenic expression and recovery of biologically active recombinant human insulin from Arabidopsis thaliana seeds". The study demonstrates bio-equivalence of purified insulin from Arabidopsis seeds when compared with commercial insulin products in an animal model.

"Demand for insulin will continue to grow as the incidence of diabetes increases worldwide and new delivery technologies, like Exubera(R) an inhaled insulin product that was recently recommended for approval by an FDA advisory committee, replace traditional injection methods. These new delivery technologies require a greater supply of insulin due to the increased dosing requirement of inhaled products. We believe that our plant-produced insulin will allow us to supply this expanding market and reduce capital costs by 70% and cost-of-goods by more than 40% compared with current production methods," said Andrew Baum, President and CEO of SemBioSys Genetics Inc. "Our team has already made substantial progress on the next development objective in this program, which is to achieve commercial levels of insulin expression in safflower, our commercial plant system."

The article details the proof-of-concept study performed using transgenic Arabidopsis thaliana, the Company's plant model system, to determine the feasibility of expressing and recovering biologically active insulin. Using the Stratosome(TM) Biologics System, recombinant human insulin was expressed and accumulated in transgenic seed. The Stratosome(TM) Biologics System also simplifies the recovery and purification processes creating significant cost reductions in large scale production. Insulin tolerance tests demonstrated that the plant-produced insulin was equivalent to commercial sources of human insulin.

SemBioSys has protected its methods for the production of insulin in plants through patent applications with the U.S. Patent and Trademark Office and the World Intellectual Property Organization.

SemBioSys is now focused on insulin expression in safflower, its commercial plant production system. Development is underway to achieve commercial levels of insulin expression in safflower to provide a high- capacity, scalable, and economical source of insulin to meet the future growth of insulin demand.

For more information on SemBioSys' insulin production in plants view the abstract of the article in Plant Biotechnology Journal at: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-7652.2005.00159.x.

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 product candidates are insulin and a developmental cardiovascular drug called Apo AI. It also has a series of non-pharmaceutical products addressing animal health, nutraceuticals 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.