SASKATCHEWAN OPPORTUNITIES CORPORATION PURCHASES CANAMINO BUILDING

Economic and Co-operative Development Minister Janice MacKinnon, also

minister responsible for the Saskatchewan Opportunities Corporation

(SOCO), today announced the establishment of the Innovation Place

Bioprocessing Centre in Saskatoon at a cost of $1,230,000.



SOCO will operate the facility as part of Innovation Place's technical

and scientific infrastructure to serve the Saskatchewan agricultural

biotechnology sector and the fledgling nutraceutical and

pharmaceutical sectors. Initially five jobs will be created with

additional positions added as demand warrants.



"The acquisition of this facility secures another piece of

infrastructure necessary to support the ongoing development of the

value-added processing sector in Saskatchewan," MacKinnon said. "It

will provide the much-needed specialized processing required for these

industries to mature."



SOCO has purchased the former processing facility operated by Canamino

and will operate it on a toll contract processing basis. Several

Saskatoon companies in the agricultural biotechnology and

nutraceutical industry, such as Fytokem and Bioriginal Food and

Science Corp., have expressed their intention to use the facility

throughout the year for contract processing of their product. In

addition the Saskatchewan Research Council is interested in using the

facility to develop new processes for its clients.



"Fytokem is developing plans for ongoing processing capability,"

said John Schaw, president of Fytokem. "Our processing demand

for existing products is expected to grow from 10 tonnes of input

in 1999 to 80 tonnes in 2004. Having access to a local toll

processor like this would be extremely beneficial as it allows a

company like ours to defer major capital expenses."



Dennis Trumpy, manager of custom processing at the POS Pilot

Plant said, "Opening this facility on a fee for use basis will

create a larger scale processing facility in our province to

complement POS' capabilities. We have reviewed the facility's

capabilities with our senior scientific staff and see at least

three broad areas of utilization that could interest fourteen

potential clients."



MacKinnon said, "This building will complement the capability of

the POS Pilot Plant, by acting as a higher volume toll processing

facility, thereby delaying the need for local companies to invest

in their own facilities, until they have proven their processes

and their markets; that significantly increases their chances of

being successful."



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For more information, contact:



Irene Rau

Director of Corporate Affairs

SOCO

Regina

Phone:(306) 787-8576