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Bioniche Receives $2 Million Government Grant For Market Development Related to its E. coli O157:H7 Cattle Vaccine
Date:9/7/2007

BELLEVILLE, ON, Sept. 7 /PRNewswire-FirstCall/ - Bioniche Life Sciences Inc. (TSX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced that it has received a $2 million grant from the Rural Economic Development (RED) Program of the Ontario Ministry of Agriculture, Food and Rural Affairs. The grant, announced by the Honourable Leona Dombrowsky, Minister of Agriculture, Food and Rural Affairs, will be applied to market development related to the Company's E. coli O157:H7 cattle vaccine.

The vaccine will be used for the reduction of shedding of E. coli O157:H7 bacteria by cattle. Shed bacteria can contaminate food, water and the environment. Human exposures to this pathogen result in an estimated 100,000 cases of illness per year in North America. Bioniche believes that use of the vaccine will reduce the amounts of bacteria in cattle and the related incidence of human disease.

"This investment demonstrates the Ontario government's interest in ensuring that our Canadian developed and manufactured technology reaches a global market," added Graeme McRae, President & CEO of Bioniche Life Sciences Inc.

"This investment is good news for Belleville, for the agri-food industry, and for all Ontarians," said Minister Dombrowsky, as she announced the funds to the Company earlier today.

Bioniche has commenced limited production of the E. coli O157:H7 cattle vaccine at its Belleville, Ontario facility. This supply is now being provided to veterinarians requesting vaccine under the Canadian Permit to Release regulations. Bioniche will continue to scale up vaccine production as full domestic and international approvals are received. Until such approvals are received, all vaccine will be shipped to Canadian veterinarians as permit requests are received and approved by the Canadian Food Inspection Agency (CFIA).

The Company announced in August that the first permit has been issued for its E. coli O157:H7 cat
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SOURCE Bioniche Life Sciences Inc.
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