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Sepragen Announces Successful Commercial Launch of Its Sepralac® Dairy Process at Anchor Products

Union City, CA, August 6, 1999 - Sepragen Corporation (OTC BB: SPGNU, SPGNA, SPGNW) announced today the beginning of commercial production utilizing its patented Sepralac® Process.

The commercial facility commissioned by Anchor Products, Ltd. has the capacity to extract several hundred kilograms of purified proteins from several hundred thousand liters of cheese whey each day.

Anchor Products, Ltd. which is a member of the New Zealand Dairy Group (NZDG) of Companies, based in Hamilton, New Zealand processes 5.5 million tons of milk per year into 650,000 tons of dairy products. Peter Hobman, general manager, Specialty Ingredients Group (NZDG), said, ``We are excited about the commissioning of the Sepralac® plant. Utilizing Sepragen's technology, we are able to separate individual proteins from whey, enabling our customers to use these next generation of ingredients to improve and add value to products including baby formula, sports nutritional drinks and a multitude of other healthful 'functional' food and nutraceutical products.''

Vinit Saxena, CEO of Sepragen commented that ``According to the agreement, Anchor Products will purchase additional equipment and supplies as their production ramps up and will also pay Sepragen an on-going royalty. Thus, their success at this facility will truly mean our success, as well.''

Sepragen Corporation develops and markets technology along with equipment and supplies for process chromatography applications. Sepragen has developed a number of patented applications that provide large market opportunities in the food and beverage industry, including debittering citrus juices, extracting isoflavone (plant estrogen) from soy, as well as extracting proteins from whey. The company holds over 14 issued patents relating to its core technology.

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The statements in this release that relate to future events or performance, statements about growth, future regulatory clearances, levels of sales and market size and future manufacturing capacity and efficiencies are forward-looking statements that involve risks and uncertainties, including risks associated with uncertainties related to the development of markets for and commercial acceptance of the company's products and services, the availability of components, competitors' product introductions and other risks identified in the company's SEC filings. Actual results may differ from those described in these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

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