CURRENT STATUS ON THE DEVELOPMENT OF FUNCTIONAL TECHNOLOGIES YEAST PRODUCTS:

	Product Development Process	Red Wine Yeast	Brandy Yeast	White Wine Yeast	Sake Yeast
1	Integration of Functional Technologies platform technology				Second Half 2006
2	Extensive Testing and Validation of Functional Technologies Yeast				Second Half 2006
3	Fermentation testing to ensure new yeast: A. Affectively degrades urea				First Half 2007
	B. Reduces ethyl carbamate levels				First Half 2007
	C. Yeasts are substantially equivalent to unmodified strains i.e. sensory analysis and winery trial runs				First Half 2007
4	GRAS Notification to the US FDA				First Half 2007
5	Regulatory notification to Health Canada and Environment Canada	Second Half 2006	Second Half 2006	Second Half 2006	First Half 2007
6	Commercial Sales Target	First Half 2007	First Half 2007	First Half 2007	Second Half 2007

Note: TBA = To Be Announced (awaiting results)

Achievements:

1998 to 2000: Proof of concept work was initiated and completed at the UBC Wine Research Centre.

February 2004: Successfully applied platform technology to red wine yeast and initiated testing. Expanded product development line to include four more yeast strains, which are globally and commercially used in the production of white wine, brandy and sake.

May 2004: Successfully completed testing of the red wine yeast.

June 2004: Successfully applied platform technology to brandy yeast and initiated testing. Initiated fermentation testing of the red wine yeast.

July 2004: Submitted data to "Request for Data" posting from The Food & Agriculture Organization of the United Nations and The World Health Organization (FAO/WHO) for risk assessment study on Ethyl Carbamate to be done by the Joint FAO/WHO Expert Committee On Food Additives (JECFA). Risk assessment to include toxicology, exposure and intervention strategies. JECFA evaluation due February 2005.

August 2004: Red wine yeast completed first step of fermentation testing with positive results demonstrating it could effectively and substantially break down urea. Also, successfully applied platform technology to white wine yeast and initiated fermentation testing of the brandy yeast.

November 2004: Functional Technologies' proprietary red wine and brandy yeasts successfully complete fermentation tests to confirm they substantially reduce ethyl carbamate in wine.

December 2004: Functional Technologies announces an appointment to its Advisory Board. Mr. Arthur Caputi - a 50 year executive with E. & J. Gallo Winery who is a highly respected, published and active enologist and scientist in the wine industry worldwide.

2006: Commercial field trials in Northern Hemisphere wineries.

2007: Commercial field trials in Southern Hemisphere wineries.

March 2007: WHO and IARC reclassifies ethyl carbamate from Group 2B Carcinogen to Group 2A.