Ganeden's Multi-Use Topical Antifungal Included Defense Appropriation for 2nd Straight Year; Company Opens Military & Federal Program Division in Northern Virginia.

Business Editors, Science/Health/Medical and Defense Writers

BIOWIRE2K

CLEVELAND--(BW HealthWire)--Jan. 17, 2002

Ganeden Biotech announced today that its proprietary topical antifungal medication, Fungi-Free(TM), has for the second straight year been included as part of the Congressionally mandated Peer Reviewed Medical Research Program (PRMRP) of U.S. Defense Appropriations Legislation for FY 2002.

The Peer Reviewed Medical Research Program is directed by the Secretary of Defense to "...select medical research projects of clear scientific merit and direct relevance to military health and readiness."

Fungi-Free(TM), a topical antifungal agent that is effective in mitigating toenail infections, athletes' feet and jock itch is currently being tested by the military as the first topical multi-use antifungal formulated for field conditions.

The Company will also examine collaborative opportunities under the current PRMRP with the Department of Defense with respect to its novel therapy that mitigates Vancomycin Resistant Enterococci (VRE), an antibiotic resistant disease that exists in virtually every hospital in the United States. The Company has successfully concluded pre-clinical animal studies on VRE at the Louis-Stokes Cleveland Department of Veteran Affairs Medical Center, Cleveland, Ohio facility. The study results were published in Letters in Applied Microbiology 2001, 33, 84-88.

The Company also announced the establishment of a Military and Federal Program Division located in Lake Ridge, Virginia which is staffed by two retired Marine Corps field grade program officers and an administrator from the Walter Reed U.S. Army Institute of Research. The Ganeden Military Program office is working with United States military units in field evaluations of Fungi-Free, ADS(TM), the Company's anti-diarrheal supplement and MycoBan(TM), the Company's treatment for vaginal yeast infections.

Ganeden Biotech Inc. is a Cleveland, Ohio based health care company engaged in the discovery, development, and commercialization of therapeutic products based on the unique properties of lactic acid producing bacteria. Ganeden has developed a strain of lactic acid producing bacteria that is amenable to high volume manufacturing and can be produced in various formulations.

These bacteria are effective therapies for a variety of infectious and systemic disorders. Other Ganeden products are currently in animal or clinical research in anti-fungal applications, cholesterol reduction, livestock feed efficiency and the treatment of antibiotic resistant infections.