EAGAN, MN – December 16, 2003 – DKSH, a leading international marketing, distribution and services group, has been granted distribution rights to Biopolymer Engineering’s patented beta glucan products as a functional food ingredient and nutritional supplement in Europe.

The agreement provides Biopolymer Engineering with a strong partner in European markets that have high acceptance of functional foods and nutritional supplements. DKSH is headquartered in Zurich and operates in 35 countries globally. It coordinates a network of 220 offices Asia wide and 21 offices in Europe and the Americas.

“Our agreement with DKSH is another important step towards obtaining global distribution for our beta glucan products,” said Richard Mueller, president and chief executive officer of Biopolymer Engineering. “We are very excited about working with a company with such a long-standing tradition and expertise that spans both East and West.”

“The future cooperation with Biopolymer Engineering on a regional basis is bound to become one of the first success stories, which proves the strategic effectiveness of our focus on global business units and which will profit from the leverage of our newly formed group,” mentioned Wolfgang Schanzenbach, Executive Vice President, Business Unit Food & Ingredients of DKSH.

DKSH will offer Biopolymer Engineering’s two-branded specialty ingredient beta glucans, WGP Beta Glucan™ and BetaRight™, and a nutritional supplement finished product, Imucell WGP™. Numerous scientific studies confirm the ability of Biopolymer Engineering’s yeast beta glucans to enhance immune system function. Research also shows that an enhanced immune system can provide support against a wide-range of foreign challenges.

Target markets in Europe for these products include:

§          Functional and True Food Ingredients. There is a broad range of functional food applications, including bakery, dairy and beverages.

§          Government and Military Sales. The U.S. Armed Forces Radiobiology Research Institute is studying the radio-protective properties of WGP Beta Glucan. Results of this research could spur sales with government and military organizations worldwide.

§          Nutritional Supplements. Imucell WGP may be offered through large distribution networks in Europe and Asia.

Background
DKSH is a leading international solution provider and knowledge broker. Its expertise is in sourcing, marketing, logistics and distribution, fulfillment and after-sales services.

Founded and deeply rooted in Asia, DKSH controls the flows of goods and information through a supply and demand matrix. Bridging the complex markets within and between Asia Pacific, Europe and the Americas has led to its core competency: Market Intelligence.

DKSH Market Intelligence combines and uses market information, leading-edge product and application expertise, sophisticated marketing and logistics skills with unique cultural and personal insights accumulated over a corporate history covering nearly one and a half centuries. Website: www.dksh.com.

Biopolymer Engineering, Inc. is a biotechnology company that is pioneering carbohydrate solutions to improve human health. Founded in 1997 and based in Eagan, Minnesota, the company has built a strong technology platform of patented and proprietary intellectual property relating to its carbohydrate-based products. Website: www.biopolymer.com.

For more information please contact:

David Walsh
Biopolymer Engineering, Inc.
651-675-0300
dwalsh@biopolymer.com

Dr. Jörg Wolle
President & CEO
DKSH Holding
Wiesenstrasse 8
CH-8034 Zürich
Tel. +41 1 386 72 09
Fax: +41 1 386 72 14
E-Mail: joerg.wolle@dksh.com