Botaneco receives additional milestone payments from AVAC Ltd.



    TSX symbol: SBS

    CALGARY, Feb. 26 /CNW/ - Botaneco Specialty Ingredients Inc. ('Botaneco')
today announced that it has received milestone payments of non-dilutive
funding from AVAC totaling CDN$1,173,000. The milestones Botaneco completed
include raising more than $3 million of external financing, recruiting a
permanent Chief Executive Officer, and the development of new applications
from its technology platform as demonstrated by the launch of its
second-generation product, Hydresia(TM) G2. To date, Botaneco has received
CDN$1,923,000 of a potential CDN$2,400,000 committed by AVAC for the
achievement of specific commercial targets.
    "AVAC's support, specifically on the commercialization of Hydresia(TM),
has been critical to our ongoing progress," said Andrew Baum, president and
chief executive officer of Botaneco. "Botaneco is continuing to work with
leading personal care companies to integrate Hydresia(TM) into their finished
formulations, and we expect significant Hydresia(TM)-based product launches by
our customers this year. We will also be introducing new Hydresia(TM)
ingredients this year as part of our ongoing effort to meet the specific needs
of our customers."
    In return for its investment, AVAC is entitled to receive a royalty on
gross revenues generated by Botaneco beginning in the fourth quarter of 2009,
until an aggregate return of a maximum of two times the gross amount invested
by AVAC has been remitted.

    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.

    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 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, the submission of a CTA to the appropriate European
authorities, the successful initiation and timely and successful 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: Botaneco Specialty Ingredients Inc., Andrew
Baum, President and CEO, Phone: (403) 668-6685, E-mail: bauma@sembiosys.com;
The Equicom Group Inc., Ross Marshall, Vice President, Phone: (416) 815-0700
ext. 238, E-mail: rmarshall@equicomgroup.com

Organization Profile

BOTANECO SPECIALTY INGREDIENTS INC.

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