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Sepragen Signs a Letter of Intent with GoldTech Ingredients Group

Union City, CA, April 23, 1998 – Sepragen Corporation (OTC BB: SPGNU, SPGNA, SPGNW) has signed a letter of intent with GoldTech Ingredients Group, a subsidiary of California Gold Dairy Products (Petaluma, CA) to install the first commercial high volume facility that uses chromatography to isolate and purify individual proteins from whey.

The new facility will produce ingredients for improved infant baby formula, new sports drinks, and a variety of fat-free, health-enhancing food products.

According to Roy Wentz, COO of California Gold, "Utilizing Sepragen's technology, GoldTech plans to separate out at least four key proteins from whey, which we hope to sell for a multiple of the current price of whey protein concentrate."

Vinit Saxena, Sepragen president and CEO, and Wentz said the proteins produced by the plant would also be utilized as nutraceuticals in many new functional foods and food products. "We are already working with companies seeking to investigate their use as a value-added alternative to soy protein, and with companies seeking to develop next-generation sports drinks that would contain proteins as well as electrolytes," said Wentz and Saxena.

"In this new food environment of technology-driven nutraceuticals, we expect the ingredients business to become a key focus of the U.S. dairy industry," said Wentz.

Whey-based proteins to be produced by the GoldTech facility will include Alpha-Lactalbumin, Beta-Lactoglobulin, Lactoferrin, and Whey Protein Isolate (WPI), each of which is greater than 90% pure protein.

California Gold is the state's third largest dairy cooperative, representing more than 325 farmers in California and Nevada. The cooperative has an annual milk supply of 2.5 billion pounds, which is sold as fluid milk or used to produce varieties of American and Italian natural cheeses, cream, condensed and skim milk products, nonfat dry milk, whey protein concentrate, and other ingredients. The cooperative has manufacturing facilities in Petaluma, Turlock, Hughson and Tulare.

Sepragen Corp. develops, assembles and markets liquid chromatography columns and systems. In recent years, Sepragen has developed a number of proprietary applications that address large, highly visible markets in the food and beverage industry, including citrus juice, soy protein, wines, oils, as well as whey protein.

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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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