Biothera Sues Cypress Systems Inc. for Patent Infringement

Cypress System’s BetaPrecise™ beta glucan used in Natrol Inc. brands

EAGAN, MN – March 16, 2005 – Biothera, the immune health company, has filed a patent infringement lawsuit in federal district court in Minnesota against Cypress Systems Inc., the supplier of BetaPrecise™ brand of beta 1,3/1,6 glucan, an immune health dietary supplement ingredient.

The lawsuit asserts that Cypress Systems, a Fresno, California company, is in violation of patents that provide Biothera with the exclusive right to manufacture and sell its proprietary forms of yeast
(Saccharomyces cerevisiae) beta glucan as a dietary supplement.  Biothera has more than 40 U.S. patents and patents pending and has additional patents in more than 20 countries.

According to the lawsuit, Cypress Systems’ BetaPrecise beta glucan is an ingredient in various dietary supplements, including some marketed by Natrol Inc., (NASDAQ: NTOL) a diversified nutrition products company based in Chatsworth, California.

“We believe that Cypress Systems is infringing upon our patents with its product, BetaPrecise,” said Richard Mueller, Biothera president and chief executive officer.  “We are confident that the court will continue to uphold the validity of our patents.”

Biothera, formerly Biopolymer Engineering, Inc., has successfully enforced its patents in two previous legal actions. In 2002 the company obtained injunctive relief from the U.S. District Court that prohibited High Performance Living Corporation  from selling nutritional supplements containing yeast beta 1,3/1,6 glucan. The following year Biothera reached a settlement in its patent infringement lawsuit against Levapan S.A. and Savoury Systems International Inc. in which the two companies agreed to recognize the validity of the company’s patents. Levapan S.A. and Savoury Systems International Inc. also agreed to stop selling beta glucan products in the U.S.

Biothera has also filed a patent infringement lawsuit against Biotec Pharmacon ASA, the manufacturer of the immune health supplement Immutol
®, and the product’s distributor, Immunocorp.

About Biothera, the Immune Health Company
Biothera is a biotechnology company dedicated to improving immune health. The company's primary focus is developing pharmaceuticals whose unique mechanism of action engages immune cells not normally involved in the fight against cancer. In addition, Biothera’s healthcare group manufactures and markets food-grade immune-enhancing ingredients for the nutritional supplement, functional food, cosmetic and the animal feed and nutrition markets.

Contact:
David Walsh
VP, Communications
Biothera, the Immune Health Company
651-256-4606
dwalsh@biotherapharma.com


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