Functional Technologies Reports Second Quarter 2013 Financial Results

Functional Technologies Corp. (TSX VENTURE:FEB) (the "Company") today reported
operational and financial results for the second quarter ended February 28,
2013. Amounts, unless specified otherwise, are expressed in Canadian dollars. 


Financial Results 

The Company achieved a net gain of $0.0177 million during the three month period
ending February 28, 2013 ("Q2, 2013"), as compared to a net loss of $4.6 million
in the same period in 2012 ("Q2, 2012"), representing an improvement of $4.630
million. This positive change is primarily a result of an asset impairment
charge of $3.393 million in the prior period but also reflects a decrease in
operating expense of $0.446 million in Q2, 2013 relative to Q2, 2012, as well as
a $0.198 million gain from asset sales and $0.689 million gain from forgiveness
of debt during Q2, 2013. 


Operating expenses, excluding stock-based compensation expenses, for Q2, 2013
were $0.78 million, compared to $1.1 million in Q2, 2012. 


Liquidity and Outstanding Share Capital 

As at February 28, 2013, the Company had cash and short-term investments of $0.5
million compared to $0.38 million as at August 31, 2012. 


As at February 28, 2013, Functional Technologies had 61,370,444 common shares
issued and outstanding. 


Operating Highlights 

The second quarter of fiscal 2013 was primarily a quarter of reorganization to
position the Company to move forward with its revised business plan, first
announced April 4, 2012, which involved the sale and closure of non-yeast
technology assets and subsidiaries. This restructuring, designed to place the
Company in a position to minimize operating expenses while simultaneously
accelerating commercialization of its proprietary yeast technologies, made
significant advances during the quarter. 


During Q2, 2013, the Company announced: 



--  November 1, 2012 - The termination of the proposed sale of assets to
    former employees; 
    
--  December 7, 2012 - Senior Management Changes; 
    
--  February 4, 2013 - The hiring of in-House Investor Relations. 



During Q2, 2013 operational highlights included significant advances in the
commercialization of the Company's Acrylamide Preventing ("AP") yeast. During
this quarter commercial-grade AP yeast was independently manufactured by a
global yeast manufacturer and third-party tested in commercial snack food
products at a pilot scale level by a global food manufacturer. This pilot scale
testing produced positive results that warrant further testing at a commercial
scale.


Subsequent to quarter-end:



--  As at April 15, 2013 Finance PEI (formerly known as Innovation PEI), a
    secured creditor, enforced its security on the property of the Company's
    subsidiary, Phyterra Bio Inc. and placed Phyterra Bio Inc. into
    receivership. The total amount of indebtedness secured is $260,789. 
    
--  On April 25, 2013, the Company filed a notice of intent to submit a
    proposal to creditors under the Bankruptcy and Insolvency Act. Reference
    should be made to the Company's news release of April 25, 2013 for
    further information. 



Accounting Change

The Company's Q2/13 consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS"), reporting
standards to which the Company transitioned from Canadian Generally Accepted
Accounting Principles during the fiscal year ended August 31, 2012. 


Additional Information

This news release should be read in conjunction with the Company's consolidated
financial statements for the quarter ended February 28, 2013 and the notes
thereto, together with the MD&A for the corresponding period, which are
available on the Company's website www.functionaltechcorp.com and on SEDAR at
www.sedar.com. 


About Functional Technologies Corp.

Functional Technologies develops and commercializes proprietary, advanced
yeast-based solutions to significant challenges in the food, beverage and
healthcare industries. The Company's platform improves the performance of innate
yeast functions, and prevents the formation of naturally occurring toxins and
contaminants that either affect final product quality or are classified by the
World Health Organization as probable human carcinogens. Functional
Technologies' lead technologies include yeasts that prevent and reduce the
formation of the foul-smelling hydrogen sulphide (H2S) and the carcinogen
acrylamide, both of which are natural occurring by-products of food and beverage
processing. These contaminants are found in many commonly consumed items, such
as fermented food products and alcoholic beverages, and baked and fried foods. 


The head office and R&D operations for Functional Technologies are based in
Vancouver, BC, Canada. 


For more information, please visit our website at www.functionaltechcorp.com.

FOR FURTHER INFORMATION PLEASE CONTACT: 
Functional Technologies Corp.
Maurice Boucher
Investor Relations
+1.604.424.8909
www.functionaltechcorp.com