BioProgress Executes License Arrangement for a Variation of XGel Technology.

Business Editors & Medical Writers

ATLANTA--(BUSINESS WIRE)--Aug. 30, 2002

BioProgress Technology International, Inc. (OTC BB: BPRG) today announced that a division of Bristol-Myers Squibb Company (NYSE: BMY) has entered into an Exclusive License Arrangement for a variation of BioProgress' core XGel(TM) Film technology.

Details regarding specific applications and products have not been released.

Graham Hind, Managing Director of BioProgress stated, "We are very pleased to have secured an agreement with a global partner who is a leader in its marketplace. We have always believed that our core XGel(TM) Film technology had potential for myriad applications in high value global markets and today's announcement is evidence that our belief is valid."

Following five 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. The Company is primarily focused on commercializing its proprietary XGel(TM) Film Systems, which are the world's first range of animal-free encapsulation processes. Versions of the XGel(TM) system can encapsulate liquids, coat tablets and deliver powders. These patented processes eliminate the use of gelatin, which is a protein derived from animal renderings. Since the mid-1930s, gelatin has been widely used for encapsulating non-aqueous products such as vitamin oils (dietary supplements), and pharmaceuticals. Two-piece capsules made from gelatin are extensively used to deliver powder doses of pharmaceutical drugs. Gelatin also is used as a tablet coating material. The Company believes its XGel(TM) Film Systems are a revolutionary step in eliminating animal by-products from pharmaceuticals and dietary supplements and offer substantial cost benefits when compared to current drug and supplement delivery methods.

BioProgress has executed agreements with Procter & Gamble (NYSE: PG), Nestle, J T Racing LLP, a wholly owned subsidiary of Brass Eagle, Inc., (Nasdaq: XTRM), Bristol-Meyers Squibb (NYSE: BMY) and The Boots Company (LSE: Boot). The Company has announced the sale of XGel(TM) Film Systems to Peter Black Healthcare, which has also executed an option to purchase ten NRobe(TM) powder fill versions of the XGel(TM) technology. Farmasierra S.A., based in Madrid, has ordered an NRobe(TM) system to develop products for the pharmaceutical prescription medicine sector. The Company continues to work with several major international pharmaceutical Companies to determine the suitability of the various versions of the XGel(TM) Film Systems to replace traditional dosage forms 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.

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.