March 23, 2006

New Skin Health Ingredient Bridges Cosmetics and Supplements; Significant Skincare Market Potential in Synergistic Topical and Oral Formulations of Ingredient

LINCOLN, New Zealand -- A skin care ingredient duo launched today by Keratec Ltd bridges the gap between topical cosmetic products and dietary supplements.

There are two skin health ingredients in the range - Cynergy TK(TM), which addresses skin health through topical application, and Cynergy NK(TM), which addresses skin health as an oral supplement. The products can be taken together for a synergistic effect, or individually. They use the remarkable cell-strengthening and softening properties of Functionalized Keratin(TM) extracted using patented processes from New Zealand sheep wool.

The oral ingredient can be incorporated into capsules, beverages and food bars. The topical ingredient can be incorporated into skin creams and toners or any other product where the intent is to deliver healing nutrients directly to the skin or hair.

Keratin is a structural protein that is a main constituent in skin and hair. It is normally non-soluble. Keratec has developed a method of extracting keratin from wool in a soluble, functional form by separating wool fiber into its constituent keratin parts without destroying the different fractions.

Keratec's Vice President of Business Development, Fertram Sigurjonsson, said the introduction of Cynergy(TM) is an important step towards a game-change in the nutritional, skin health and cosmeceutical industries. The new products help traditional supplement companies move into skin care, and skin care companies to cross over into supplements.

"The two products together become more active than as individual components, so they synergize - hence the name Cynergy," said Sigurjonsson. "Our offering to consumers is a natural, renewable and bioactive solution to the dilemma of which materials to select for integrated skin health solutions. Cynergy allows customers to select an integrated vertical solution for premium skin care." He said it also offers manufacturers an excellent brand story.

The ingredients are available to any cosmetic or supplement manufacturer.

The product launch takes place at the Natural Products Expo West tradeshow held annually in Anaheim, California. More than 1500 natural and organic foods, health supplement and personal care manufacturers and distributors exhibit at the show. It is estimated that more than 36,000 industry professionals from over 80 countries will participate. Keratec will be exhibiting in booth 728 at the show.

About Keratec (www.keratec.co.nz):

Keratec is a New Zealand based biotechnology company, creating new materials from natural sources using patented technologies. Keratec has developed a backbone of core technologies for the extraction and purification of Functionalized Keratin(TM) proteins and lipids from wool sources. Keratec currently markets its products to the Personal Care industry and has ongoing product development in the field of Consumer Health and medical materials. Keratec is a subsidiary of Wool Equities Limited, registered on the New Zealand Stock Exchange under the code (NZE:WEL).


Contacts
Communications Plus
Kay Paumier, 510-656-8512 (U.S.)
E-mail: kay@communicationsplus.net
or
Flourish Communication Limited
Christine Moore, +64-3-963-3737 (Outside the U.S.)
E-mail: christine@flourishcommunication.co.nz
or
Keratec Limited
Fertram Sigurjonsson, +64 3 325 6687
Fax: +64 3 325 3028
Mobile: +64 21 318 960
E-mail: keratec@keratec.co.nz
or
To contact Keratec from the U.S. phone 011-64-3-325-6687
Email: keratec@keratec.co.nz
Website: www.keratec.co.nz

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