EAGAN, MINN. – July 6, 2004 – Biopolymer Engineering, Inc. announced today that it has named Steven J. Karel to the newly created position of Chief Technology and Operations Officer.

Previously Mr. Karel was the Chief Financial Officer and Chief Operations Officer of the company. The new position reflects the success of the company’s technology development efforts, including the expansion of research collaborations, intellectual property and the initiation of clinical research involving the company’s compounds.

“The success of our compounds in early stage research has led to rapid expansion of our development efforts,” said Richard G. Mueller, President and Chief Executive Officer. “Steve’s in-depth knowledge of our technology, and his leadership during the past number of years in advancing our technology platform made him the obvious choice for this new position.”

Brian Brandley, Ph.D. and Vice President of Research and Development, will now report to Mr. Karel. Mr. Karel’s responsibilities will include management of the company’s R&D and analytical lab, expanding portfolio of more than 40 U.S. patents and patents pending, and an increasing number of research collaborations with government institutions, medical centers and universities. In addition Steve will be responsible for leading our grant programs including our ongoing efforts with the National Cancer Institute and will maintain his oversight of corporate operations.

Mr. Karel joined the company at its inception in 1997. Since then he has served as Chief Financial Officer. In 2001 Mr. Karel was also named Chief Operating Officer with responsibility for the company’s corporate operations.

Prior to joining Biopolymer Engineering, Mr. Karel was Chief Financial Officer and Chief Operating Officer of Techtel, Inc., a wireless telecommunications company in the Ukraine. He was previously CFO and COO for a Minneapolis construction company. He is a certified Public Accountant and began his career with Peat, Marwick, Mitchell & Co., an international accounting firm.

About Biopolymer Engineering, Inc.
Biopolymer Engineering, Inc. is a biotechnology company that is pioneering carbohydrate solutions to improve human health. Based in Eagan, Minnesota, the company has more than 40 U.S. patents and patents pending, with additional filings in more than 20 countries that protect its yeast beta glucan products and compounds. Biopolymer Engineering is developing beta glucan applications for pharmaceuticals, nutritional supplements, functional foods, cosmetics and animal feed and nutrition. Website: www.biopolymer.com.

Contact:
David Walsh
Biopolymer Engineering, Inc.
651-256-4606