Botaneco announces $4,000,000 financing



    - Investment enables SemBioSys subsidiary to accelerate commercialization
    of personal care ingredients with its proprietary oleosome-based
    technology -

    TSX symbol: SBS

    CALGARY, June 30 /CNW/ - Botaneco Specialty Ingredients Inc.
('Botaneco'), a wholly-owned subsidiary of SemBioSys Genetics Inc.
('SemBioSys'), today announced that it has entered into an agreement for a
$4.0 million convertible debenture financing with Avrio Ventures Limited
Partnership ('Avrio Ventures'). Along with $2.4 million previously committed
from AVAC Ltd., the funding will be used to accelerate Botaneco's
commercialization of Hydresia(TM) products that target the personal care and
topical ingredients markets. In consideration of prior investments made,
SemBioSys received debentures from Botaneco totaling $5 million. Excluding the
SemBioSys debentures, the transaction assigned Botaneco a pre-money valuation
of $12.5 million.
    "This transaction provides Botaneco with the financial resources
necessary to aggressively pursue opportunities in the personal care,
over-the-counter (OTC) and topical pharmaceutical markets completely
independent of SemBioSys. This is the latest in a series of steps we have made
to provide Botaneco with the technology, people and capital to operate as a
separate entity and achieve its full potential. It also allows SemBioSys to
focus its resources specifically on our pharmaceutical pipeline," said Andrew
Baum, president and chief executive officer of SemBioSys. "Dozens of companies
are now developing consumer products with Hydresia(TM), and we expect to see a
further array of product launches based on these ingredients in the coming
quarters."
    Hydresia(TM), a natural product, is derived from safflower seeds and
offers unique functionality and aesthetic properties without compromising
performance. Strategically positioned to lead the natural personal care
movement, Hydresia(TM) is an effective replacement for synthetic, petroleum-
and animal-derived ingredients in a variety of product categories.
    "The company's proven products and established relationships with
personal care consumer companies, combined with its robust technology platform
and seasoned management team, create a strong competitive advantage," said Aki
Georgacacos, Partner of Avrio Ventures and new board member of Botaneco. "The
double-digit annual growth in the natural personal care segment makes it one
of the fastest growing markets for global personal care products. The
company's oleosome technology is well positioned to capitalize on this trend
away from petroleum and other synthetic ingredients. We are very excited to
assist Botaneco in both expanding its ability to meet the growing demand for
its existing products as well as to exploit opportunities for further product
development in the topical OTC market."
    AVAC, Avrio Ventures and SemBioSys have agreed to allow other investors
to participate in the convertible debenture financing through subsequent
subscriptions for a period of 120 days, up to a maximum of $4.5 million in
additional proceeds.

    About Botaneco Specialty Ingredients Inc.

    Botaneco is the global developer and marketer of innovative
oleosome-based ingredients to the personal care and OTC topical markets. As a
technologically driven provider of high performance, proprietary
oleosome-based ingredients, Botaneco is committed to developing innovative
ingredients that offer multifunctional, tangible and documented benefits to
both formulators and consumers. Botaneco's head office and manufacturing
facility is located in Calgary, Canada and its satellite office in Bensalem
PA. More information is available and can be accessed at www.botaneco.ca.

    About SemBioSys Genetics Inc.

    Calgary, Alberta-based SemBioSys Genetics Inc. is a biotechnology company
developing protein-based pharmaceuticals for metabolic and cardiovascular
diseases. The Company's technology platform allows for the production of
pharmaceutical proteins in an easily scalable, very low cost (in terms of both
capital and COGS) manner. The Company's lead pharmaceutical candidates,
produced in the plant host safflower, are recombinant human insulin to serve
the rapidly expanding global diabetes market and Apo AI(Milano), a next
generation cardiovascular drug. SemBioSys also owns Botaneco Specialty
Ingredients Inc., a supplier of specialty ingredients to the personal care and
topical OTC and Rx markets. More information on the company can be found at
www.sembiosys.com.

    About Ventures Management Corporation

    Avrio Ventures is a venture capital firm that supports the development of
Canadian commercialization and growth stage industrial bioproducts,
nutraceutical ingredients and food technology companies into world-class
organizations. www.avrioventures.com

    This press release contains certain forward-looking statements,
including, without limitation, statements containing the words "believe",
"may", "plan", "will", "estimate", "continue", "anticipate", "intend",
"expect" and other similar expressions which constitute "forward-looking
information" within the meaning of applicable Canadian securities laws.
Forward-looking statements reflect the Company's current expectation and
assumptions, and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from those anticipated. These
forward-looking statements involve risks and uncertainties including, but not
limited to, changing market conditions and market size, the acceptance of an
IND by the FDA in respect of clinical studies and the successful and timely
completion of clinical studies, the fact that Apo AI is currently a
development stage drug, the establishment of corporate alliances, the impact
of competitive products and pricing, new product development, uncertainties
related to the regulatory approval process and other risks detailed from
time-to-time in the Company's ongoing filings with the Canadian securities
regulatory authorities which filings can be found at www.sedar.com. Given
these risks and uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements. The Company undertakes no
obligation to publicly update or revise any forward-looking statements either
as a result of new information, future events or otherwise, except as required
by applicable Canadian securities laws.





For further information:

For further information: SemBioSys Genetics Inc., Andrew Baum, President
and Chief Executive Officer, Phone: (403) 717-8767, E-mail:
bauma@sembiosys.com; The Trout Group, Ian Clements, Senior Vice President,
Phone: (415) 392-3385, E-mail: iclements@troutgroup.com; Avrio Ventures, Aki
Georgacacos, Managing Director, Phone (403) 215-5489, Email:
ageorgacacos@avrioventures.com

Organization Profile

SemBioSys Genetics Inc.

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BOTANECO SPECIALTY INGREDIENTS INC.

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