Synsorb Biotech Opens Calgary Manufacturing Facility

Synsorb Biotech Inc. has begun operations and systems validation at its flagship fine chemical manufacturing facility in Calgary, Alberta, Canada. Design on the 30,000 square foot facility, christened "Prospect Place," began in November of 1997. Construction began in March 1998 and continued through the year. Prospect Place is one of the only manufacturing facilities of its kind in Canada and is designed to meet the cGMP requirements for pharmaceutical products.

Prospect Place was built with loan assistance totaling $11 million from CIBC Knowledge Based Business and FINOVA (Canada) Capital Corp. The facility was designed and constructed to enable commercial manufacturing of the Company's two lead products, Synsorb Pk and SYNSORB Cd from raw materials through to finished dosage form using the Synsorb's proprietary carbohydrate chemical technology. Synsorb expects that the facility's capacity is capable of meeting the demands of the global market for these products.

Synsorb Pk is being tested as a treatment for the severe complications of verotoxigenic E. coli (VTEC) infections (including E. coli O157:H7). These food-borne pathogens primarily affect children. The VTEC toxin affects a number of different parts of the body including the gut wall, red blood cells, the kidneys and the central nervous system, leading to such conditions such as hemorrhagic colitis, hemolytic anemia, hemolytic uremic syndrome, and death. Approximately 5 to 20% of children who contract VTEC infections progress to one of these more serious complications.

Synsorb Pk is currently in Phase III clinical trials and continues to enroll patients at 3 sites in Canada, 11 in the US and 4 in Argentina.

Synsorb Cd, for treating severe, recurrent diarrhea associated with Clostridium difficile infection, is undergoing Phase II clinical trials in the U.S. and Canada. Ten sites are enrolling in Canada and 15 sites are enrolling in the US. The US arm has a further 6 sites targeted for inclusion in the trial.

"Our commitment to these products is evidenced by the fact that we have invested significant money and other resources in manufacturing and clinical trial infrastructure," said David Cox, President and Chief Operating Officer of Synsorb Biotech Inc. "We are doing everything we can to bring these products to market quickly."

In addition to having two late stage products in clinical trials, Synsorb has also expanded its strategic direction to include the clinical development of other small molecule-based therapeutics within the company's targeted disease indications. This is exemplified by a research agreement recently announced with Ocean Pharmaceuticals Inc., a biotech firm specializing in discovering new classes of antibiotics from marine microorganisms. Synsorb also has signed a letter of intent with GeneSense Technologies Inc., a Toronto company developing antisense technology targeting cancer.

For more information: David Cox, COO, Synsorb Biotech, Inc., Suite 201, 1204 Kensington Road NW, Calgary, AB T2N3P5 Tel: 403-283-5900. Fax: 403-283-5907.