Patent entitlement action

RNS Number:1422R
BioProgress PLC
21 October 2003


Press Release                                               21 October 2003

                                 BioProgress plc

    BioProgress Technology Limited initiates patent entitlement action against
                         Stanelco Fibre Optics Limited

BioProgress Technology Limited, a wholly owned subsidiary of BioProgress plc ("
BioProgress" or the "Company"), a provider of innovative delivery mechanisms for
the pharmaceutical oral dosage markets, today commenced proceedings against
Stanelco Fibre Optics Limited ("Stanelco") a subsidiary of Stanelco plc claiming
entitlement to key patents and patent applications in the portfolio of Stanelco.

The patents in question relate to processes for encapsulation (for example, of
pharmaceutical, healthcare or non-ingestible industrial products) by
gelatin-free polymeric materials (gelatin being derived from animal materials),
which processes were invented by BioProgress Technology Limited in 1998.

The proceedings comprise BioProgress' application to have ownership of certain
key patents and patent applications in the portfolio of Stanelco assigned to
BioProgress, together with an order to have BioProgress registered as the
rightful owner of the patents and patent applications in question.

Under its generic brand XGelTM, BioProgress has developed four new
pharmaceutical dosage forms SWALLOW, TABWRAP(R), NROBE(R) and SEPTUM(R) and has
an extensive patent portfolio. The patents which are the subject of these
proceedings are not related directly to the TABWRAP(R), NROBE(R) and SEPTUM(R)
new dosage forms which BioProgress is in the process of commercialising.  The
proceedings will not impact upon the Company's ability to deliver these
technologies to its current customers or have any effect on existing customer
relationships and the strategic alliances recently announced.

BioProgress has amassed strong intellectual property and intends to safeguard it
by legal means, as and when necessary.  Insurance has been obtained to protect
the costs position of BioProgress in the litigation.

Barry Muncaster, Consultant and former Chief Executive of BioProgress, is in
charge of this dispute in order to allow current management to focus on business
development.

Graham Hind, Chief Executive of BioProgress, said:  "During the process of
developing our capsule technology we explored a number of capsule sealing
options including laser and radio frequency. The patents which are the subject
of these proceedings are not used in our TABWRAP(R), NROBE(R) and SEPTUM(R)
processes but, we believe, have significant value in the development of
additional new processes and dosage forms.

"As we are now a UK public company with responsibilities to our shareholders we
intend fully to retain and maintain all the innovative products we have
developed and will do what needs to be done to ensure that our IP is protected.
When ownership of the patents is established, we can continue to generate
significant additional licensing revenues and further strengthen our existing
strong business model for the benefit of our shareholders. The fact that we have
secured insurance cover for the costs of this litigation enables us to progress
these proceedings with a high level of confidence."

BioProgress will not be making further comment until proceedings have been
resolved.

                                    - Ends -



For further information:
BioProgress plc

Barry Muncaster, Consultant and former Chief Executive of                       Tel: [phone]
BioProgress
[e-mail]                                                                   www.bioprogress.com



Media enquiries:
Bankside
Henry Harrison-Topham / Heather Salmond                                         Tel: [phone]
[e-mail]                                                                    www.bankside.com


Notes to editors:


BioProgress listed on AIM in May 2003 and is engaged in the research,
development, and design of patented encapsulation systems that use water soluble
and biodegradable films for the dietary supplement, pharmaceutical and other
sectors.  The Company's patent portfolio comprises over sixty patents within
sixteen patent families and has product development agreements and strategic
alliances with several global companies.  BioProgress aims to provide a cost
effective and animal-free encapsulation process for pharmaceutical drugs in
liquids, tablets and powders, thereby addressing the needs of the entire market
for oral dosage forms while providing novel delivery mechanisms not possible
with traditional processes.

The Company has also developed, patented and licensed the world's first
flushable ostomy pouch that offers a newly enhanced quality of life not
previously possible for the end user.  Market research shows the global ostomy
market to be worth $1 billion annually.

The Company's business model provides it with several significant revenue
streams including sales of encapsulating machines and film, plus licence and
fees for research development services.



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