Ceapro Inc. Diabetes Screening Product Phase III Pivotal Trial Results are Successful.

EDMONTON, ALBERTA--(BUSINESS WIRE)--April 1, 1997--Ceapro Inc.(Alberta Stock Exchange CZO.) Ceapro Inc. ("Ceapro") (ASE: CZO) announced today that five Diabetologists, who met in Vancouver, B.C. on March 14 and 15, 1997 to discuss and analyze the results of a Phase III Clinical study completed in December, 1996, have concluded that Ceapro's diabetes screening product ("DSP") was proven to be more sensitive and more accurate than the oral glucose tolerance test ("OGTT"), particularly in the group known as pre-diabetic. A total of 360 tests, conducted in five university hospital research centres across Canada, were completed on three types of patients: Normals, Pre-Diabetic and Diabetic.

"This is a important conclusion, since it allows us to move ahead with submissions to Health Canada and the U.S. FDA," said Mr. Bob Binnendyk, Ceapro's President and CEO. "The results will also be the basis of further discussions with potential distribution partners."

Type II diabetes is the leading cause of adult blindness, kidney disease, coronary heart disease and non-traumatic amputation. In North America, diabetes and related illnesses represent a direct and indirect cost of $120 billion per year. The average diabetic II has diabetes for 10-12 years prior to diagnosis. In the U.S.A., approximately 21 million people have impaired glucose tolerance, of which one half will go on to develop Type II diabetes. It is estimated that by the year 2004, one in four North Americans will have diabetes II or pre-diabetes.

Target Market: Because current screening methods (fasting sugar) are inadequate, one half of all people with diabetes II will remain undiagnosed. The DSP is a test that is designed to more accurately identify this undiagnosed group of diabetics II.

Ceapro discovers, develops and produces value added natural health products for the cosmetics, animal care, pharmaceutical and food industries, using a patented oat fractionation technology to which Ceapro has exclusive worldwide rights. A number of innovative formulations are commercially available and are being marketed in the international cosmetic and animal health industries, and others are in development for the functional foods and human pharmaceutical sectors.

Ceapro is the corporation resulting from the amalgamation of Ceapro Developments Inc. and Vexco Healthcare Inc. (formerly VXO). Ceapro is listed on the Alberta Stock Exchange under the trading symbol "CZO". -0- The ASE has neither approved or disapproved of this release dated April 1, 1997

CONTACT: Ceapro Inc.

Donald MacLean, 403/421-4555

or

The Barnes Organization Inc.

Evemarie Tulloch, 416/367-5000