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Termilone Market Development Deal Signed With Ensystex

BioProspect Limited announced the signing of a new international market development agreement with Ensystex Corporation for natural termite solution Termilone.

| December 28, 2009

FAYETTEVILLE, N.C. — BioProspect Limited announced the signing of a new international market development agreement with Ensystex Corporation for natural termite solution Termilone, as it continues to commercialize its natural product portfolio.

Following an initial evaluation agreement signed in January 2009, Ensystex has now agreed to undertake efficacy testing at its own cost for the registration of Termilone as a soil-applied termiticide with the Australian Pesticides and Veterinary Medicines Authority (APVMA).

BioProspect Managing Director Charles Pellegrino said the agreement was an important step in the delivery of an environmentally safe, low toxicity product to major markets including the United States, Japan and Australia.

“Ensystex has remained committed to Termilone since the signing of our initial agreement, and we are pleased to have taken our partnership a step further as we move to commercialise this important Australian discovery,” Mr Pellegrino said.

“BioProspect expects to gain registration of TERMILONE®’s active constituent, Eremophilone Oil, with the APVMA in early 2010. We are now focused on delivering a data package to the regulator for end-use products, and Ensystex together with our scientific collaborators at the CSIRO, Southern Cross University and the University of Western Sydney will help us achieve this.”

He said registration in Australia would assist registration in the United States and Japan, with BioProspect and Ensystex having the option upon the agreement’s conclusion of entering into a commercial agreement for the supply and distribution of TERMILONE® to selected international markets.

BioProspect Chief Operating Officer Peter May said field trials with end-use products were being planned by Ensystex for the first quarter of 2010. They would include a termite colony control trial to be undertaken in Townsville, north Queensland, in the first quarter of 2010 over three months, and a residual efficacy trial at the same location over a two-year period.

“Since the termite-resistant properties of Eremophila mitchellii (False Sandalwood) trees were first identified, BioProspect has invested considerable resources in developing a product with extremely low human and environmental toxicity, and with applications both as a timber protectant and as a toxicant and repellent for use as a soil-applied termiticide,” May said.

“The two-year international testing program to be initiated by Ensystex is rigorous, with Termilone undergoing tests under a variety of situations and locations, including under slab, perimeter trenching and application through reticulation systems. BioProspect is also completing a manufacturing study on extracting Eremophilone Oil from timber on a commercial scale to add to our end-use product registration package, while progressing patent applications for Termilone in the United States and Japan.”

Ensystex President David R. Nimocks, III, said the new agreement was a milestone in the development of an environmentally friendly solution for homeowners and industry users around the world.

“Ensystex aims to be a leader in environmentally responsible and effective, long-term pest management solutions and we see Termilone as a key part of our future green product range. Ensystex distributes products in all the major pest management markets around the world, including the United States, Europe and Asia-Pacific, allowing for rapid commercialisation of Termilone products internationally,” Nimocks said.

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