Functional Technologies Corp.: Phyterra(TM) Launches Hydrogen Sulphide-Reducing Yeast Strains

VANCOUVER, BRITISH COLUMBIA, Aug 17 (MARKET WIRE) --
Phyterra(TM) Yeast, a unit of Functional Technologies Corp. (TSX VENTURE:
FEB) today announced the launch of Napa-M, Napa-S, and California Red,
the first three strains of its proprietary hydrogen sulphide-reducing
wine yeast. These new yeast products prevent the sensory and spoilage
issues that often occur from hydrogen sulfide (H2S) through fermentation.

"Wineries have long been trying to solve H2S problems and we're pleased
to have pushed forward to deliver this unique preventative solution
during the current crush," said Garth Greenham, President & COO of
Functional Technologies. "We plan on providing H2S reduction in all our
wine yeast strains."

Hydrogen sulfide, a gas naturally emitted during fermentation, possesses
a distinct rotten-egg smell and is a well-recognized and 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. Napa-M, Napa-S and California Red
yeast strains lack the ability to form H2S during the fermentation phase,
making them a robust preventative solution requiring no changes to
existing production processes. Importantly, there are no negative impacts
to the sensory attributes desired by the winemaker.

Phyterra's H2S reducing technology is exclusively licensed from
University of California at Davis, where Dr. Linda Bisson, Professor at
the Viticulture and Enology Department, discovered the solution after a
decade of research. The research received significant funding support
from the wine industry, led by the American Vineyard Foundation. The H2S
solution is platform-based and can be available to any strain of yeast.
In addition to the wine yeast marketplace, there are significant market
opportunities for H2S-reduction in other fermented products and the
company is now exploring partnerships with industry players in order to
best exploit this promising technology.

Phyterra Yeast has contracted a North American fermentation facility to
supply its new yeast strains while it works to secure its own production
capabilities.

About Functional Technologies Corp.

We develop and commercialize proprietary technologies that enhance the
natural properties of yeast and micro-algae - nature's microscopic
workhorses. Our scientists apply novel techniques in this under-exploited
multi-billion dollar market to solve significant problems and generate
new opportunities for the food, beverage and healthcare industries. We
market our Phyterra(TM) proprietary yeast strains that reduce the
formation of foul-smelling hydrogen sulfide and the carcinogen urethane
in wines and other fermented products. With a head office in Vancouver,
BC, Functional Technologies (TSX VENTURE: FEB) has research and
production facilities in Prince Edward Island and a U.S. sales office in
Napa Valley, CA. For more information go to www.functionaltechcorp.com.

The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.

Contacts:
Phyterra Yeast Inc. - Sales Inquiries
707.258.8333
sales@phyterra.com

Functional Technologies Corp. - Investor Relations
Don Lay
VP Corp Dev and Communications
604.648.2200 x4
604.648.2201 (FAX)
don.lay@functionaltechcorp.com
www.functionaltechcorp.com

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