Functional Technologies Corp.: Phyterra(TM) Launches Hydrogen Sulphide-Reducing Yeast Strains

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2009) - Phyterra(TM) Yeast, a unit of Functional Technologies Corp. (TSX VENTURE:FEB) today announced the launch of Napa-M, Napa-S, and California Red, the first three strains of its proprietary hydrogen sulphide-reducing wine yeast. These new yeast products prevent the sensory and spoilage issues that often occur from hydrogen sulfide (H2S) through fermentation.

"Wineries have long been trying to solve H2S problems and we're pleased to have pushed forward to deliver this unique preventative solution during the current crush," said Garth Greenham, President & COO of Functional Technologies. "We plan on providing H2S reduction in all our wine yeast strains."

Hydrogen sulfide, a gas naturally emitted during fermentation, possesses a distinct rotten-egg smell and is a well-recognized and widespread industry problem that has long plagued winemaking. Standard approaches to remove or reduce H2S from tainted wine can be expensive, time-consuming and negatively affect product quality. Napa-M, Napa-S and California Red yeast strains lack the ability to form H2S during the fermentation phase, making them a robust preventative solution requiring no changes to existing production processes. Importantly, there are no negative impacts to the sensory attributes desired by the winemaker.

Phyterra's H2S reducing technology is exclusively licensed from University of California at Davis, where Dr. Linda Bisson, Professor at the Viticulture and Enology Department, discovered the solution after a decade of research. The research received significant funding support from the wine industry, led by the American Vineyard Foundation. The H2S solution is platform-based and can be available to any strain of yeast. In addition to the wine yeast marketplace, there are significant market opportunities for H2S-reduction in other fermented products and the company is now exploring partnerships with industry players in order to best exploit this promising technology.

Phyterra Yeast has contracted a North American fermentation facility to supply its new yeast strains while it works to secure its own production capabilities.

About Functional Technologies Corp.

We develop and commercialize proprietary technologies that enhance the natural properties of yeast and micro-algae - nature's microscopic workhorses. Our scientists apply novel techniques in this under-exploited multi-billion dollar market to solve significant problems and generate new opportunities for the food, beverage and healthcare industries. We market our Phyterra(TM) proprietary yeast strains that reduce the formation of foul-smelling hydrogen sulfide and the carcinogen urethane in wines and other fermented products. With a head office in Vancouver, BC, Functional Technologies (TSX VENTURE:FEB) has research and production facilities in Prince Edward Island and a U.S. sales office in Napa Valley, CA. For more information go to www.functionaltechcorp.com.