Functional Technologies Reports Termination of Proposed Transaction

Functional Technologies Corp. (TSX VENTURE:FEB)(OTCQX:FEBTF) reports the
termination of the spin-out agreement announced on July 19, 2012 regarding the
proposed sale of Phyterra Bio Inc. and Maritime Pulse Drying Inc., as well as
certain assets of Phyterra Yeast Inc., due to certain conditions precedent,
including government agency approval, not being satisfied or waived. The company
is reviewing alternative strategies regarding the non-core assets that were the
subject of the spin-out agreement in furtherance of streamlining its operations
and strategic focus.


Christopher Morris, Chief Executive Officer

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 ("WHO") as probable human carcinogens. Functional
Technologies' lead technologies include yeasts that prevent and reduce the
formation of foul-smelling hydrogen sulphide (H2S) and the WHO classified
probable carcinogen, acrylamide - both 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.
For more information, please visit our website at www.functionaltechcorp.com.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Functional Technologies Corp.
Geoff Lee
VP, Business Development
+1.604.648.2200
+1.604.648.2201 (FAX)
[e-mail]
www.functionaltechcorp.com