Co-operation With Japanese Process Engineers EBARA Represents Milestone in Company History

Berlin (April 12, 2005) - Nano-capsules from Berlin-based Capsulution Nanoscience AG (Capsulution) will soon be manufactured on an industrial scale. This is the aim of an agreement reached between Capsulution and Japanese process engineers Ebara Corporation. According to the terms of a new license agreement Ebara will be responsible for the development, manufacture and joint distribution of facilities for the fully automatic encapsulation of a wide range of substances applying the LBL-Technology®.

Capsulution's patented LBL-Technology® is a high-tech tool for the production of multi-functional nano- and microcapsules. Because of their minute dimensions, their diverse functionalities as well as their highly reproducible production the capsules are suitable for a wide range of life sciences applications. Prime objective of the agreed co-operation with Ebara will be the industrial-scale manufacture of encapsulations for pharmaceuticals and cosmetics as well as ingredients for the food industry. The license agreement guarantees industrial clients in the near future the easy handling of LBL-Technology®-based products, which will lead to a significant market penetration of the technology. Alongside additional one-off payments Capsulution will receive variable license fees from Ebara. "The construction of production facilities for the industrial-scale manufacture of our nano-capsules represents a milestone in our company's history. We are convinced that together with our renowned partner Ebara we can now attract many new clients from the field of life science," comments Dr. Jörg Mayer, Chief Engineer of Capsulution and responsible for the acquisition of new industry partners. Since its inception in 2000 Capsulution has pursued the development of suitable manufacturing techniques for their "intelligent" nano-capsules as one of the main criterions for success. The current stage of development together with the co-operation with Ebara sets Capsulution significantly apart from many start-up companies in the field of nanobiotechnology, whose products, quite often, do not fulfil the requirements for industrial-scale manufacture. "We are very pleased with this success. It will certainly aid our recently started search for new investors," adds Alexander Herrmann, Capsulution's CFO. As of the beginning of the year Capsulution is offering interested investors the opportunity to participate in the company. "The participation of a new investor is a suitable way to finance our ongoing research and development. For investors we represent an attractive opportunity to realise high long-term returns on their investments."

About Ebara Corp.

With 15,000 employees and a $4.8 billion turnover in 2004 Ebara is one of the leading Japanese process engineers. Already back in 1920 the company started off with the production of centrifugal pumps. Since then Ebara has been producing in its international joint ventures and foreign production sites in the US, Brasil or Italy pumps for water treatment, compressors and turbines. Expertise gained in vacuum technology was later successfully applied in the construction of facilities for semi-conductor production. The company is advising its clients on the construction of facilities for environmental protection and carries out environmental surveys. Alongside its current business divisions Environmental Technology, Water Treatment and Processing Plants, and Precision Instruments for Semi-Conductor Production, Ebara will open up new markets in the field of Life Science with the help of nanotechnology .Made in Germany..

About Capsulution NanoScience AG:

Capsulution NanoScience AG develops innovative nano- and micron-sized capsules. The company applies its worldwide-patented so-called LBL-Technology®. Based on their minute size, their functionality and their highly reproducible production process the capsules can be used for a multitude of different applications. Accordingly, the precisely sized capsules (500 nanometer to 50 micrometer) can be made to function in a manner to suit the intended application, and can be given the appropriate biochemical, electrical, optical and magnetic properties as required by the customer. The capsules can be applied for the delivery of drugs, in cosmetic products, and in diagnostics. Today, the Berlin-based company has 16 highly qualified employees. Amongst Capsulution's clients and partners are key industry players such as Bayer AG, Gelita, SCA Hygiene Products, Cognis, OctoPlus and other renowned companies.

Further Information:

Capsulution NanoScience AG

Alexander Herrmann (CFO)

Volmerstr. 7b

12489 Berlin, Germany

Tel.: +49-30-6392-3627

Fax.: +49-30-6392-3601

eMail: alexander.herrmann@capsulution.com