June 9, 2002 - Hong Kong - CK Life Sciences Int'l., (Holdings) Inc. ("CK Life Sciences") announced today that they have received notices of allowance from the US Patent Office for two of the company's fertilizer products. These two products are namely: (i) biological fertilizer based on yeast; and (ii) biological fertilizer compositions comprising household waste.



10 Fertilizer Products at Different Stages of Patent Process

Currently, CK Life Sciences have applied for patent registration of four other fertilizer products. These include biological fertilizers comprising poultry manure, cattle manure, swine manure and sludge. In addition, four more fertilizer product patent applications are in the drafting stage. Altogether, CK Life Sciences have developed 10 fertilizer products, with all at different stages of patent application.

Patents are granted upon strict conditions with the main criteria of: (i) novelty, ie the invention is a new one, not previously disclosed by anyone; (ii) inventiveness, ie not obvious to one of ordinary skill in the concerned field; and (iii) industrial applicability, ie the invention has utility value in the concerned field.

CK Life Sciences' Patent Strategy

As all of CK Life Sciences' products are new inventions, the group is determined to protect the knowledge and techniques that have been applied to develop the group's products. It is CK Life Sciences' strategy that all of the group's products will go through the rigorous assessment processes required by patent authorities in the US and other countries around the world. In addition to the sales and marketing benefits attached to intellectual property, these patents will give value assurance to the group.

"For CK Life Sciences, patenting our products is crucial as patents are the most authoritative worldwide recognition of the originality and innovation represented by our products; and patents enable us to maintain our competitive advantage by providing legal protection to our inventions, processes and methods," stated Mr H L Kam, President and CEO of CK Life Sciences.

"The notices of allowance obtained from the US Patent Office for two of our fertilizer products mark an important milestone achievement for CK Life Sciences product development," said Mr Kam. "These approvals are testimony of the innovative characteristic and utility value of our fertilizer products. They are solid credentials for our fertilizers and further reinforce the belief that these products will play a significant role in the worldwide fertilizer market," commented Mr Kam.

CK Life Sciences' Marketing-Oriented R & D Approach

The fertilizer market is a big one, with worldwide market size estimated to be US$40 billion. It is understood that this market is mainly made up of chemical fertilizers. While believed to be able to improve crop yields, chemical fertilizers are also considered to be a major source of pollution to the environment.

In looking for alternatives which can alleviate environmental problems without compromising yields, CK Life Sciences' Biotechnology Laboratory Division ("CK Biotech Lab") commenced the search for biological solutions which can meet that need. This search was conducted based on the belief that there are many unknown and dormant genes in micro-organisms which after being selected, can be activated and acclimatized to perform specific functions. Research studies on yeast strains such as those used in beer brewing and baking of bread have identified certain specially-treated yeasts with the capability of fixing nitrogen (N) from the air, decomposing rock phosphate into phosphorous (P), and breaking down potassium (K) from the soil to an easily absorbable form when they are in contact with the roots of plants. Along this approach, CK Biotech Lab successfully developed a range of fertilizer products and called it NutriSmart.

Unlike traditional chemical fertilizers of which the amounts of NPK are pre-fixed, NutriSmart is an environmentally friendly fertilizer which contains no soluble NPK. NutriSmart manufactures NPK in the soil, therefore can provide a "smart" phased interaction with the root system to give the appropriate quantity of nutrients to the crops when nutrients are needed; and does not cause any nutrient leaching which often pollutes nearby rivers and water bodies. Trial results conducted in a number of countries in Asia, Australia, Europe, and North America have suggested that NutriSmart not only matches the yields made possible by traditional chemical fertlilizers, it also possesses the following benefits:(i) environmentally friendly; (ii) beneficial for the protection and improvement of soil condition; and (iii) improve the quality of the produce.

CK Life Sciences Fertilizers - A Key to Sustainable Agriculture Practice

"Leaching caused by chemical fertilizers is a problem faced by many countries around the world. An example being Australia where studies have shown that chemical fertilizers are causing pollution to their national treasure, the Great Barrier Reef, and their main river system, the Murray Darling River. Keen interest towards NutriSmart has been registered in many of these countries from environmental groups, governments and farming communities, where sustainable agriculture practices are being heavily promoted, and solutions such as NutriSmart is the key to implementing such practices. There has been an on-going search for effective and efficient environmentally friendly alternatives to chemical fertilizers, and NutriSmart has been considered by many concerned groups to be the win-win formula for environmental protection and agriculture yields," expressed Mr Kam.

"We, in CK Life Sciences, are very excited about the benefits which NutriSmart can bring to the environment as well as farmers. This is the right solution offered at the right time to solve a pressing environmental problem. We believe that NutriSmart has the potential of not only revolutionizing practices in agriculture, but also the opportunity of taking up a dominant market position in the US$40 billion fertilizer market," commented Mr Kam.

CK Life Sciences is engaged in the business of research and development, commercialization, marketing and sale of biotechnology products. The company's business areas cover two dimensions - human health and environmental sustainability. Products developed by CK Life Sciences are categorised into five areas - eco-agriculture, bioremediation, pharmaceuticals, nutraceuticals, and dermatalogicals.

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