Functional Technologies Signs Agreement with Leading Global Yeast Producer, Production of Acrylamide-Preventing Yeast to Comm...

Functional Technologies Corp. (TSX VENTURE:FEB)(OTCQX:FEBTF) (the "Company") is
pleased to announce it has entered an agreement with a global, industry leader
in yeast production and technologies (the "Yeast Producer") for the optimization
and commercial grade-production of the Company's Acryleast(TM)
acrylamide-preventing (AP) yeasts. This agreement, which also contains certain
commercial terms, enables the producer to begin the manufacture of the AP yeasts
so that pilot scale volumes can, and currently are being produced and shipped to
the Company's food processing collaborators, which collectively represent some
of the world's largest and most recognized multinational food companies.
Acryleast(TM) is Functional Technologies' platform solution that has been
demonstrated to prevent or reduce the formation of acrylamide, a carcinogenic as
well as reproductive and neurological toxic byproduct that is prevalent in many
widely consumed food products. 


Under this agreement, Functional Technologies has now shipped commercial strains
of its Acryleast(TM) yeasts to the Yeast Producer for scale production. The
Yeast Producer has also been granted a non-exclusive right of negotiation to
obtain an exclusive license to commercialize the Company's Acryleast(TM)
technologies for specific food sectors, such as in the form of longer term
license agreements and/or large scale production and supply of AP yeasts. 


The agreement stipulates, that once right of negotiation is triggered, these
negotiations are required to be completed within a limited time frame. 


Functional Technologies believes that the arrangement for the AP yeasts to be
produced in an expedited manner, which requires significant coordination and
capital and resource allocation on the Yeast Producer's part, reflects not only
a commitment of the Yeast Producer in collaborating with Functional
Technologies, but also validates the appeal and significance of the commercial
opportunity associated with the Acryleast(TM) technology.  


The scale of Acryleast(TM) production to be undertaken by this collaboration
will enhance the ability of food producers to conduct their own pilot testing to
confirm the effectiveness of the Company's AP yeasts, at scale, in reducing
acrylamide under commercial processing conditions. Successful confirmation of
the performance of Acryleast(TM) yeasts in a variety of food applications, under
industrial conditions, represents an important milestone to drive adoption of
the AP yeasts by various industries. 


"This agreement, which follows the earlier letter of commitment between the
parties, is a significant step towards validating the effectiveness and utility
of the Company's innovative and proprietary acrylamide-preventing yeasts at an
industrial and commercial level," said Mr. Howard Louie, Chief Business
Development Officer of Functional Technologies. "We are pleased to continue to
solidify our relationship with this industry leader in yeast technologies and
production, and expand the opportunities associated with our proprietary yeast
technologies. Obtaining access to the production of our products at a high
standard of quality assurance at scale, will allow us to move through pilot
scale production runs with our trial partners/customers allowing the product to
be fully adopted into their product mix. The news that we are collaborating with
a global leader in yeast production for this stage of product testing allows the
global food producers with which we are running trials and product integration
the comfort that their future needs on any scale in any region can more readily
be met from a production capacity requirement."


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 supplied (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
[e-mail]
www.functionaltechcorp.com