Acceptance of XGel Film System Triggers New Deal with Peter Black Healthcare.

Business Editors & Medical Writers

ATLANTA--(BUSINESS WIRE)--March 26, 2002

BioProgress Technology International, Inc. (OTC Bulletin Board: BPRG), is pleased to announce that Peter Black Healthcare ("PBH") has accepted the first full scale XGel(TM) Film System.

Acceptance of the system triggers the build of a second system for PBH and also triggers a six-figure stage payment due under the contract.

PBH has kindly consented to allow the Company to retain the XGel(TM) Film System at its Hostmoor facility for a period of six months where it will be used to complete large scale production trials of all soft capsule products within PBH's current range. In addition, development work will be undertaken to integrate an automated inspection system as an addition to the standard features of the XGel(TM) Film System.

The Company is also pleased to announce that, following a presentation of its new NRobe technology to PBH's senior management, PBH has placed an option with the Company to purchase five NRobe Systems.

The Company's NRobe technology has been in development for two years. NRobe is a high-speed process designed to replace traditional two-piece hard capsule and tablet coating processes. The technology is subject to several international patent applications.

Commenting on today's announcement, Alan Clements, Managing Director of Peter Black Healthcare said, "Peter Black Healthcare is committed to innovation in tablet and soft gel dosage forms. The BioProgress developments in this area have clear and significant commercial potential and offer the consumer improved products made from natural gelatin-free materials."

Graham Hind, Managing Director of BioProgress Technology, said, "Acceptance of our liquid fill XGel(TM) technology has always been viewed as a major milestone, and today's announcement confirms our belief that our technology will set the global standard for oral dosage forms. We are absolutely delighted to have extended our relationship with the PBH team and we look forward to introducing our NRobe technology at the earliest opportunity."

About BioProgress

Following four years of research and development, BioProgress is emerging from its developmental stage. The Company is dedicated to commercializing its intellectual property in the field of water-soluble and biodegradable films and processes for their inclusion in high volume mass-market products through its proprietary XGel(TM) Film System, the world's first animal-free soft capsule process. The patented process eliminates the use of gelatin, which is a protein derived from animal renderings. Since the mid-1930s gelatin has been the only material suitable for encapsulating non-aqueous products such as vitamin oils (dietary supplements), pharmaceuticals and cosmetic oils. The Company believes its XGel(TM) Film System is a revolutionary step in eliminating animal by-products from ingestible products used to deliver pharmaceuticals and dietary supplements, and on a cost-efficient basis compared to traditional methods.

BioProgress has executed Agreements in respect of specific applications of its XGel(TM) Film System with Procter & Gamble (NYSE: PG), Nestle and Brass Eagle, Inc., (Nasdaq: XTRM) and The Boots Company plc (LSE: BOOT). The Company has previously announced the sale of full XGel(TM) Film System Licenses and XGel(TM) Film Systems to Peter Black Healthcare and Farmasierra S.A. The Company has confidential contracts with major international corporations engaged in pharmaceuticals, consumer durables and confectionery products to determine the suitability of the XGel(TM) Film System to replace traditional encapsulation processes and, in some cases, to facilitate new product development not possible with competitive technologies.

BioProgress is a fully reporting company having its ordinary shares quoted on the NASD OTC Bulletin Board (symbol BPRG). The Company's web site can be viewed at www.bioprogress.com.

Forward-Looking Statements

Statements included in this press release which are not historical in nature, are intended to be, and are hereby identified as "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by Public Law 104-67 and provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements may be identified by words including "anticipate," "believe," "intends," "estimates," "expects," and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future business prospects are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.