FACT Corporation Announces Plans For 2003 Fiscal Year.

Business Editors

FREEHOLD, N.J.--(BUSINESS WIRE)--Jan. 29, 2003

FACT Corporation's (OTC Bulletin Board:FCTTA) President, Jacqueline Danforth, in a letter to shareholders issued today's date highlights the year ahead as a year which will bring "a marked increase in our functional premix sales which should ultimately be reflected in shareholder value."

The letter further details:

2002 Accomplishments:

-- Opening of development facility in Freehold N.J. for ongoing development of new and innovative functional products;

-- Launch of the first functional products containing FACT's Healthy Lifestyle(TM) premix by Western Bagel Baking Corporation and Destinos Fresh Pasta;

-- Sales by Western Bagel exceed expectations;

-- Customers at Destinos' Tutta Pasta restaurants give functional fresh pasta good reviews.

The Year Ahead - 2003

-- FACT functional premixes to be introduced to several channels

of the food industry;

-- FACT to target the growing weight loss and lifestyle

management industry for introduction of functional

ready-to-eat products;

-- FACT hopes to commence test market for functional pastas with

restaurant chains;

-- E-commerce website for direct ordering of "for-at-home"

products;

-- 10 new customers in two target sectors over 2003;

-- Gross revenues of between $1.1 and $2.0 million during 2003

growing to $14 million for fiscal 2004 as major customers

reach full distribution of new products containing FACT

Healthy Lifestyle(TM) premix.

The functional category in which FACT operates is currently a $17.6 billion industry in the U.S. and is forecasted to reach $32.7 billion over the next three years. FACT is positioning to become a leading technology enabling company in the dough and batter based segment of this industry, a sector which represents over 41% of the total category. FACT's reduced digestible carbohydrate/high fiber mixes, containing no added sugar, are suitable for creating a myriad of food products including breads, bagels, pasta, cookies, cakes, muffins and other sweet goods, as well as pizza shells and make-at-home mixes for pancakes, waffles and scones. FACT products are designed specifically to address some of the serious health concerns facing today's consumers.

"We are highly enthusiastic about our prospects for the current year as consumers continue to seek new and better ways to prevent and address disease and health conditions through healthier eating," states Ms. Danforth.

DISCLAIMER

Forward-Looking Statements: This press release may contain certain forward-looking statements. All statements, other than statements of historical fact, included herein, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and FACT Corporation does not undertake an obligation to update forward-looking statements should conditions or management's estimates or opinions change.