Biophage Pharma Completes successful pilot study with Alberta Agriculture and Food - Large-scale production of phages gets green light



    MONTREAL, Aug. 28 /CNW Telbec/ - (TSX.V: BUG) - Biophage Pharma Inc.
(TSX.V: BUG "Biophage") is pleased to announce the signing of a follow-on
contract with Alberta Agriculture and Food. As the direct result of a
successful pilot study (previously announced on April 3, 2007), Biophage and
Alberta Agriculture and Food have now entered into an agreement to proceed
with the production of large-scale volumes of highly purified bacteriophage
preparations in a fermentor.
    Securing this contract marks the beginning of a new business opportunity
for Biophage and strengthens its relationship with Alberta Agriculture and
Food. The completion of this second contract will bring Biophage in a position
to offer biotech companies working in this field, as well as food producers
and distributors, the commercial volumes of bacteriophages required to prevent
bacterial contaminations throughout the supply chain, from the farm field to
packaged products on store shelves.
    Since the landmark U.S. Food and Drug Administration ruling of
August 2006 allowing the use of phage preparations on ready-to-use-meat
products, Biophage has received several inquiries from food producers and
distributors who recognize the commercial potential of bacteriophages as an
innovative, safe and environmentally friendly solution for the control of
bacterial contaminations.
    Dr Rosemonde Mandeville, President and CEO said: "The successful
completion of the pilot study and the signing of this follow-on contract with
Alberta Agriculture and Food in just three months demonstrate that our
technologies and know-how are sound and solidify our position as a leading
provider of highly purified phages to the food industry and Biotech companies.
We expect this production line to generate a continuous revenue stream in the
coming years as more food producers and distributors incorporate phage therapy
in their production chain in order to control and prevent bacterial
contaminations."

    About Biophage Pharma Inc.

    Biophage is a Canadian biotechnology company focused on the development
of innovative phage-based products and technologies for the detection,
prevention and control of bacterial infections. Biophage operates three
divisions: (1) The Immunotox Labs division, which provides services in
Immunogenicity and Immunotoxicity, Beryllium sensitivity testing (BeLPT) and
exclusive MELISA(R) testing for the detection of sensitization to more than
200 different allergens including metals, penicillin, gluten, pollens and more
recently Lyme disease (Boreliosis); (2) The Biosensors division for the
development and commercialization of Biosensors PDS(R); and (3) The
Therapeutics division for the prevention and control of bacterial
contaminations in the medical, veterinary and environment fields. Both the
Biosensor and Phage therapy programs have been structured to deliver an
environmentally safe solution for the early detection and rapid control of
deadly microorganisms.
    (www.biophagepharma.net; www.immunotoxlabs.net)

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    %SEDAR: 00014714EF




For further information:

For further information: Rosemonde Mandeville, M.B., Ch.B., PhD.,
President and CEO, Biophage Pharma Inc., (514) 496-1488,
rosemonde.mandeville@biophagepharma.net; Louis Guindon, Chief Financial
officer, Biophage Pharma Inc., (514) 496-3230,
louis.guindon@biophagepharma.net

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BIOPHAGE PHARMA, INC.

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