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Sepragen Converts Debt to Equity and Removes Lien on Patents

Union City, CA, March 4, 1999 - Sepragen Corporation (OTC BB: SPGNU, SPGNA, SPGNW) announced today that it had succeeded in restructuring its liabilities to improve the balance sheet.

Pursuant to the terms of previously issued convertible notes and pursuant to certain other negotiated transactions, Sepragen Corp. converted $612,941 of debt and accrued expenses into equity. Additionally, it has raised another $300,000 in capital through the sale of shares of Class A Common Stock to new Shareholders. In all, a total of $912,942 was either invested or converted into stock. A total of 1,901,962 shares of Class A Common Stock and 346,718 warrants to purchase Class A Common Stock were issued at prices of $0.46 to $0.48 per share.

Certain other accounts payable liabilities totaling approximately $500,000 have also been converted into a secured note with extended payment provisions over eight months. ``Overall,'' said Vinit Saxena, the company's president, ``This step improves the balance sheet and allows us time to pay off debt without providing additional threats to our ability to grow. This restructuring will allow us to pursue not only additional equity financing, but conventional financing means as well for our cash flow needs.''

The company also announced the addition of John Walker to its board. Walker replaces Bob Leach who has recently announced his resignation to focus on pressing demand with his current venture. Walker is an independent management consultant and has previous experience with managing small and emerging companies in the separations and nutritional field.

Specifically, he founded Fermentec to develop and commercialize innovative whey processing technology, and subsequently consulted with Wacon, a venture formed to also capitalize on unique technologies to increase the value of byproducts from cheese whey. He also has direct experience in managing a business commercializing a unique ion exchange technology for water treatment, and in marketing nutritional products.

In 1986, he founded a Northern California chapter of TEC, an international organization of CEOs, and served as its vice president of Marketing and its regional manager for eight years. Since 1984, he has provided general management and strategic planning assistance to a wide variety of high tech emerging companies.

Walker has an MBA from Stanford University. Following his appointment to the company's board, Walker stated, ``I am excited to be part of Sepragen. I believe that the company has an exciting technology with tremendous business potential and a dedicated team of which I am proud to be a part.''

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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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