RNS Number:3956S
BioProgress PLC
24 November 2003


Press Release                                                   24 November 2003


                                 BioProgress plc

         BioProgress announces the execution of a letter of intent to enter
         a global strategic alliance with a major US pharmaceutical company



BioProgress plc, a provider of innovative delivery mechanisms for the
pharmaceutical oral dosage markets, announces today it has executed a letter of
intent to enter into a global strategic alliance with a major US pharmaceutical
company.



For commercial reasons the name of the US company must remain confidential at
this time, but it is a global leader in the Over-the-Counter (OTC) medicines
product sector.  The Letter of Intent announced today is the culmination of
several weeks of discussions and due diligence.  It is anticipated that a formal
agreement will be completed on or before January 31st 2004.



The Letter of Intent provides that the US company will purchase an exclusive
license for one of the BioProgress XGEL(R) dosage forms in a specific market
sector and for the geographic areas of North America and the European Union.



BioProgress will receive a royalty on sales of all products which use the dosage
form.  Furthermore, as sales volumes under this agreement are expected to be
substantial, large volumes of the BioProgress proprietary film will be required.
  The Letter of Intent therefore also provides for the US company establishing a
pharmaceutical standard (cGMP) film manufacturing source in the USA to supply
their own film requirements under the exclusive license.  In addition, this new
pharmaceutical standard (cGMP) source will exclusively supply BioProgress with
film for its other technologies and customers in the North American market.



Graham Hind, Chief Executive of BioProgress, said: "This is an important
agreement for BioProgress as it establishes yet another of our dosage form
technologies with a major US customer.  Within this agreement, specific products
with known current volumes can be identified as candidates for our technology.
We can therefore forecast our royalty revenues as the technology is
progressively adopted and the product introduction programme is implemented.



Our US partner in this agreement is influential in the industry and their
adoption of the technology will substantially enhance the credibility of the
dosage form and I believe will quicken its adoption by others outside of the
exclusive license field.  This agreement also provides BioProgress with
exclusive access to pharmaceutical standard film production capacity in the
North American Market. This will be seen as a major advantage to our existing
and prospective new US based customers."



                                    - Ends -



For further information:
BioProgress plc

Graham Hind, Chief Executive                           Tel: +44 (0) 1354 655 674
grahamhind@bioprogress.com                                   www.bioprogress.com



Media enquiries:
Bankside

Henry Harrison-Topham / Heather Salmond                Tel: +44 (0) 20 7444 4140
heather.salmond@bankside.com                                    www.bankside.com



Notes to editors:



BioProgress listed on AIM in May 2003 and is engaged in the research,
development, and design of patented encapsulation systems that use water soluble
and biodegradable films for the dietary supplement, pharmaceutical and other
sectors. The Company's patent portfolio comprises over sixty patents within
sixteen patent families and has product development agreements and strategic
alliances with several global companies.  BioProgress aims to provide a cost
effective and animal-free encapsulation process for pharmaceutical drugs in
liquids, tablets and powders, thereby addressing the needs of the entire market
for oral dosage forms while providing novel delivery mechanisms not possible
with traditional processes.



The Company has also developed patented and licensed the world's first flushable
ostomy pouch that offers a newly enhanced quality of life not previously
possible for the end user. Market research shows the global ostomy market to be
worth $1 billion annually.



The Company's business model provides it with several significant revenue
streams including sales of encapsulating machines and film, plus licence and
fees for research development services.






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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