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Functional Technologies Appoints Beverage Supply Group to Distribute Hydrogen Sulfide-Reducing Yeast Strains


Date: 06/18/10

VANCOUVER, BRITISH COLUMBIA AND NAPA, CALIFORNIA, Jun 17, 2010 (MARKETWIRE via COMTEX) -- Functional Technologies /quotes/comstock/11v!feb (CA:FEB 0.65, 0.00, 0.00%) , a world leader in yeast research and development, today announced that it has entered into a distribution agreement with Beverage Supply Group ("BSG"), a division of Brewer's Supply Group, which has agreed to market Functional's Phyterra-branded wine yeast in the US market. This agreement enables the launch of four strains of Phyterra's kosher organic hydrogen sulfide (H2S)-reducing wine yeasts, to the Westcoast marketplace for the 2010 crush.

"We are pleased that a technically focused wine industry supplier like BSG, will be distributing our proprietary H2S yeasts," said Howard Louie, Functional's Chairman and CEO. He added, "BSG's sales efforts will build upon trade show initiatives and trials we developed over the last eighteen months and represents the first commercial launch of our yeast technology."

"Beverage Supply Group prides itself on bringing innovation to the marketplace, by offering technically superior products to our customers which add value to their process", said Dr Ian Ward, President of BSG. "We are confident that Phyterra wine yeasts provides an elegant solution to a long standing issue for winemakers and represents a significant step forward in fermentation technology. We are delighted with this partnership."

The four H2S-preventing yeast strains have been selected to offer winemakers desired wine characteristics in a range spanning barrel-aged whites and big reds to sparkling wines, while ensuring winemakers can avoid the problems associated with H2S in fermentation. Additional yeast strains with the H2S-reducing attributes will be added over time.

Dr. Linda Bisson, Professor, Viticulture and Enology, Department of Viticulture and Enology Agricultural and Environmental Sciences, University of California at Davis, commented: "It is very rewarding to see this yeast go from our labs, through development and now reach the California wineries commercially. The research support we received from the American Vineyard Foundation made this possible and is a good example of how the wine industry and UC Davis successfully collaborate."

To supply BSG with H2S reducing yeast for the 2010 North American crush, Functional will be utilizing a high quality organic contract producer.

Hydrogen sulfide, a gas naturally emitted during fermentation, possesses a distinct rotten-egg smell and is a well-recognized, 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. Phyterra wine yeast strains prevent the formation H2S during fermentation, making them a robust, preventative solution that requires no changes to existing production processes. Importantly, there are no negative impacts to the sensory attributes desired by the winemaker.

FORWARD-LOOKING STATEMENTS: This news release contains forward-looking statements about the Functional Technologies Inc. (the "Company") and its future plans. Forward-looking statements are statements that are not historical facts, and in this news release include the statements regarding: (1) the agreement with BSG enabling the launch of four strains of Phyterra's hydrogen sulfide-reducing wine yeasts to the California marketplace for the 2010 crush; (2) Phyterra wine yeasts providing a robust, preventative solution to the hydrogen sulfide problem addressing the requirements of winemakers; and (3) the launch of additional products. The forward-looking statements in this news release are subject to various risks, uncertainties and other factors that could cause the Company's actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. These risks, uncertainties and other factors include, without limitation, uncertainty as to the Company's ability to achieve the goals and satisfy the assumptions of management; uncertainties as to whether the Company will satisfy the criteria required to be met in order to access the government funding secured by the Company; uncertainties as to the availability and cost of financing; uncertainty as to the demand for the Company's products and the Company's ability to meet such demand; and general economic factors and other factors that may be beyond the control of the Company. Forward-looking statements are based on the beliefs, opinions and expectations of the Company's management at the time they are made, and the Company does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change. Reference to the section entitled "Risks and Uncertainties" commencing on page 15 of the Company's management's discussion and analysis relating to the fiscal quarter ended February 28, 2010, which is available on SEDAR at www.sedar.com .

About Beverage Supply Group

With over 75 years collective experience, Beverage Supply Group (BSG) is a leading supplier of ingredients and process aids to winemakers, committed to providing the highest quality products at competitive values, to the North American winemaking Industry. BSG, which opened in Napa 2007, is the wine division of Brewers Supply Group, the largest and most respected supplier of ingredients to the US brewing industry. For more information about BSG to www.bsgwine.com/ .

About Functional Technologies Corp.

Functional Technologies develops and commercializes proprietary technologies that enhance the natural properties of yeast and algae - nature's microscopic workhorses. Our scientists apply novel techniques to these micro-celled organisms to resolve significant health and quality problems, and generate new opportunities in the global food, beverage and healthcare industries. Our first commercial products are our Phyterra(TM) line of proprietary yeast strains, designed to reduce the formation of foul-smelling hydrogen sulphide and the carcinogen urethane in wines and other fermented products. With a head office in Vancouver, Functional Technologies has research and development facilities in Prince Edward Island and a U.S. sales office in Napa Valley, California. For more information go to www.functionaltechcorp.com .

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contacts:
Investors:
Functional Technologies
Don Lay
+1.604.648.2200 x4
604.648.2201 (FAX)
don.lay@functionaltechcorp.com
www.functionaltechcorp.com
Brisco Capital Partners
Gordon Aldcorn
+1.403.618.6507
gordon@briscocapital.com

Business:
Phyterra Yeast
Geoff Lee
+1.604.648.2200
geoff.lee@phyterra.com

Media:
Campbell & Company Public Relations
Steve Campbell
604.888.5267
scampbell@campbellpr.bc.ca

Website: www.functionaltechcorp.com

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