June 24, 2002 - Hong Kong - CK Life Sciences Int'l., (Holdings) Inc. ("CKLS") announced that its invention arm, CK Biotech Laboratory Ltd ("CK Biotech Lab"), has successfully developed 15 bioremediation products, of which 3 have been granted patents by the US and Trademark Office. The 3 patented product applications are algae suppression; nitrogen removal; and environmental toxin degradation. These bioremediation patent approvals mark another milestone for the Group's R&D achievement. To date, CK Biotech Lab, the wholly-owned subsidiary of CKLS, has developed a total of 25 eco-fertilizers and bioremediation product applications under the trade names of "NutriSmartTM" and "WonderTreatTM" respectively. They are all at different stages of patent applications.

Patent Portfolio for Eco-Fertilizers and Bioremediation Product Applications

 
Eco-Fertilizer
Bioremediation
 
Total
Patent Granted
0
3
 
3
Patent Approved - Notice of Allowance Received
2
2
 
4
Patent Pending
4
3
 
7
Drafting Stage
4
7
 
11
Total
10
15
 
25

Patents are granted upon strict conditions. Approval of patents for CKLS products demonstrates CK Biotech Lab's R&D capability and strength. To qualify for patent approval, the following requirements must be met:

(1) Novelty, ie the invention must be new.
(2) Inventive step, ie a patent will only be granted for an invention which involves an "incentive step" or, in other words, is "non-obvious" to a person skilled in the relevant art
(3) Industrial applicability/ utility, those that have industrial applicability or utility
     
CKLS' Patent Strategy
As all of CKLS' 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 CKLS' 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.

Huge Market Potential for Bioremediation Products
With these successfully developed product applications and several patents approved, CKLS is now formally introducing into the worldwide market its series of bioremediation product applications, WonderTreatTM. According to Environmental Business International, Inc., a research, consulting and publishing firm for the environmental industry based in the United States, the global wastewater treatment market is estimated to be over US$200 billion. The water equipment and chemicals segment alone is estimated to be US$47 billion in 2002. As the market is expanding and bioremediation is gaining wider acceptance as a viable treatment technology, there is considerable development potential for bioremediation products.

Unique Features of WonderTreatTM
WonderTreatTM is composed of a host of yeast strains. Without any gene recombination or gene transfer, these yeast strains have been processed by CKLS to remove nitrogen, phosphorus and odours; degrade environmental toxins and polymeric compounds; and suppress algae and pathogen growth. These yeast strains are able to break down and convert pollutants into safe, non-toxic materials. WonderTreatTM is multi-functional and is capable of treating different kinds of pollution or contamination. For example:

(1) Municipal Wastewater
WonderTreatTM can be used in combination with existing treatment facilities and increase the efficiency of sewage treatment plants. As less energy is required during application, WonderTreatTM can increase the operational efficiency, save energy and system operational cost, effectively reduce system management and maintenance costs, and avoid extra investment in equipment modification and infrastructure construction.

(2) Contaminated Surface Water
Lakes, reservoirs, rivers and seas are subject to contamination caused by agricultural, industrial and urban waste. These environmental hazards can cause the proliferation of micro-organisms, oversupply of nutrients, and the uncontrolled growth of algae. Excessive amounts of algae will lead to "red tide" and deprive fish and other aquatic organisms of oxygen, disturbing the balance of ecosystem. WonderTreatTM provides a natural way to suppress the growth of harmful algae and pathogenic organisms, improving water quality effectively.

(3) Industrial Wastewater
WonderTreatTM can be used to treat different types of industrial wastewater, including those from wineries, sugar refineries, food processing plants, mono-sodium glutamate manufacturing plants and paper mills. These industries currently use chemical and biological treatment methods. WonderTreatTM is more efficient than existing biological solutions and will not lead to secondary pollution, as in the case of chemical solutions.

(4) Solid Waste
Excrement of animals is a headache for many farm owners and is hazardous to the environment. WonderTreatTM can be used to deodorize, detoxify and remove or suppress the growth of pathogens in solid waste, helping to solve this environmental problem.

Solid waste treated by WonderTreatTM can be recycled for use as raw materials; one such example is the recycling of animal waste as raw materials for the manufacturing of NutriSmartTM, CKLS' eco-fertilizer. This recycling feature will bring about cost savings related to the disposal and treatment of solid waste.

Synergy Between WonderTreatTM and NutriSmartTM
There is strong synergy between WonderTreatTM and NutriSmartTM, CKLS' eco-fertilizer. Not only can solid waste treated by WonderTreatTM be used as raw materials for NutriSmartTM, WonderTreatTM complements perfectly with NutriSmartTM in that the former is an effective solution to treat polluted water, while the latter is an effective product to prevent water pollution at source as it does not contain the soluble substances of chemical fertilizers and so, will not cause nutrient leaching. As in the case of the Great Barrier Reef and the Murray Darling River in Australia, which are contaminated by the run-off of chemical fertilizers, WonderTreatTM can be used to treat the polluted water, and NutriSmartTM can be applied in farming to prevent further pollution from occurring, thus providing a long-term, sustainable solution to the environmental problem of nutrient leaching. The combination of WonderTreatTM and NutriSmartTM treats the symptom as well as the cause of environmental pollution.

Competitive Advantages of WonderTreatTM
There are three common kinds of environmental remediation practice:
(i) Physical method - by means of waste separation and precipitation
(ii) Chemical solution - utilizing chemicals to decompose and agglutinate pollutants
(iii) Biological solution - utilizing micro-organisms to decompose pollutants
WonderTreatTM is a biological solution which makes use of yeast strains to treat polluted water. This would prevent secondary pollution, which is often the side effect of chemical solutions, from taking place. As each pollution problem is caused by different factors, and each body of water has different characteristics, WonderTreatTM will be prescribed as custom-made solutions rather than ready-made formulae. The Group's consultants will test and analyse the polluted water first and then devise a tailor-made application to tackle the pollutants specifically.

Laboratory tests and field trials of WonderTreatTM have been conducted in Hong Kong and Mainland China, and the results have been satisfactory. Field trials are being planned for Australia, US and Canada currently.

"In addition to NutriSmartTM, WonderTreatTM is another of CKLS' product applications that contribute significantly to environmental sustainability. More environmental products will be introduced to the market by the Group in the near future," stated Mr H L Kam, President and CEO of CKLS.

"We are excited about these 3 patent approvals for our bioremediation applications. This is a strong testimony of originality and uniqueness of our products. WonderTreatTM's benefit lies in the fact that specially treated yeast is used as the treatment solution. Applied to large scale water and waste treatment facilities, WonderTreatTM is not only effective, but is more convenient, environmentally friendly and lower in cost compared with chemical or other biological solutions. We have confidence that WonderTreatTM can bring about a new approach to bioremediation, contributing greatly to improving our environment and quality of our lives, " added Mr Kam.

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

End
     


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