Montreal, Canada
June 14,  2001

Nexia Biotechnologies Inc. (TSE:NXB - news) and the Institute of Plant Genetics and Crop Plant Research (IPK), Gatersleben, Germany today announces their collaboration on a pioneering approach to manufacture spider silk proteins in crop plants. The technical advances of Dr. Conrad's group in producing recombinant spider silk proteins in transgenic plants, published in the latest issue of Nature Biotechnology (Vol.19, pp. 573- 577), will be combined with Nexia's spider silk genes and spinning technology.

Nexia has obtained rights to license IPK's intellectual property and know- how in plant-based spider silk protein production to further broaden its BioSteel® patent estate and expand spider silk
manufacturing base to include plants and animals.

Making spider silk fibers is a two-step process; first, producing the soluble spider silk protein and then spinning it into a continuous, fine denier fiber. IPK has proven that recombinant spider silk proteins can be produced in a soluble form in significant quantities in transgenic potatoes and tobacco. The collaboration will explore the production of additional spider silk genes, the spinning of these silk proteins and the evaluation of the fibers.

"Nexia was attracted to the non-food uses of transgenic crop plants developed by IPK as part of its
ongoing program to develop renewable, low cost - large scale manufacturing process for BioSteel®
proteins. We will be comparing the cost of production and quality of BioSteel® protein made in milk and plants." said Jeffrey Turner, President & CEO, Nexia Biotechnologies Inc.

"We at IPK are pleased to be working with Nexia which has numerous spider silk genes and spinning technologies that complement our innovative transgenic plant capabilities" says Dr. Conrad. IPK's Director Professor Wobus adds "our ongoing collaboration with Nexia underlines the Institute's position as a competence center of 'Green' biotechnology".

About Nexia

Nexia develops and manufactures complex recombinant proteins in the form of biomaterial and
biopharmaceutical products with medical and industrial applications. The Company's most advanced product under development, BioSteel® performance fibers, will be used to make medical devices (wound closure systems) and advanced industrial performance products (military and aerospace applications).

About IPK

The Institute of Plant Genetics and Crop Plant Research, based in Gatersleben Germany carries out basic and applied research on crop plants with special emphasis on genetics. IPK's research focuses on structure, function and evolution of plant genomes as well as on conservation and evaluation of genetic diversity of crop plants. The Institute has more than 440 employees and 147 scientists and an annual budget of 60 M DM.

Company news release
N3588