BSG Basicgov Systems Inc.

Functional Technologies Corp. (TSX VENTURE:FEB) (the "Company") is pleased to
announce today recent developments and initiatives to support growing customer
enthusiasm and demand for the Company's proprietary hydrogen sulphide
(H2S)-preventing wine yeasts. This includes the availability of new proprietary
wine yeast strains that offer low levels of both H2S and sulphur dioxide (SO2),
as well as technical and marketing programs with several leading non-profit
institutions and/or alliances associated with the wine industry to further
expand the Company's product offerings as well as enhance the support and
adoption of its wine yeasts. 


The Company's wine yeasts have gained substantial interest and demand in the
U.S., Europe and South America since their commercial introduction two years
ago, including a 240% increase in the number of commercial wineries purchasing
these yeasts for trials. The Company's wine yeasts are marketed by its wholly
owned subsidiaries Phyterra Yeast Inc. and Phyterra Europe GmbH (collectively
"Phyterra"), with distribution in the U.S. facilitated by an exclusive
partnership with the Beverage Supply Group ("BSG"). In Europe, Phyterra's wine
yeasts are offered through various country-specific distributors, reflecting the
segmented wine industry there. 


Complementing the offerings of Phyterra's most popular strains, based on
customer interest and requests, the Company has expanded its product portfolio
with new innovations, primarily classically bred wine yeast strains that not
only feature the low H2S attribute, but also low levels of total SO2. Under
certain conditions, excessive levels of SO2, which can form also as a byproduct
of wine fermentation, can cause sensory faults. These next generation wine
yeasts are expected to be available for the 2012 fall wine production season. 


"We are pleased to be able to build on the positive customer feedback that we
and our distributors have received on our proprietary H2S-preventing wine
yeasts, by offering an expanded portfolio of wine yeast products enabling
winemakers to select their preference of low H2S or both low H2S and low SO2
wine yeasts that are best suited to their winemaking practices," said Howard
Louie, Chief Business Development Officer of Functional Technologies. "These and
other industry-supported strategies are expected to not only enhance customer
benefits and satisfaction, and drive adoption of our innovative next generation
wine yeasts, but also elevate the value of our yeast platforms." 


Supporting the initiatives to expand the Company's platform and product
portfolio of innovative wine yeasts, technical and marketing programs have been
launched, or are in discussions to begin, with several leading academic
institutions and/or industry groups associated with the wine sector in the U.S.
and Europe. This includes the University of California at Davis ("UC Davis"), a
leading viticulture and enology institution that is also home to the Robert
Mondavi Institute ("RMI") for Wine and Food Science. A collaboration agreement
with UC Davis has commenced to complement the Company's internal strain
development and breeding programs, and is expected to enable more efficient and
rapid expansion of Phyterra's portfolio of wine yeasts, resulting in a broad
selection of wine yeast strains. In addition, the collaboration includes
technical initiatives to optimize the quality and customer support of the
Company's expanded portfolio, and as well, provide valuable access to UC Davis'
renowned expertise. 


"I am pleased at the widespread interest in these strains and in the low H2S
technology that we have developed. One goal of our strategy was to be able to
breed this capability into varying genetic backgrounds to provide an array of
options for the wine industry," commented Dr. Linda Bisson, Professor at UC
Davis' Viticulture and Enology Department. 


From marketing perspectives, additional strategies including branding
initiatives supported by industry validation of the benefits offered by
Phyterra's wine yeasts, as well as both volume and premium pricing structures,
are in various stages of implementation, with the support of BSG and its vast
industry network and alliances. 


"The innovative and beneficial qualities associated with Functional
Technologies' H2S-preventing wine yeasts make a great fit for Beverage Supply
Group's mandate to offer novel and technically superior products that improve
our customer's processes, as evidenced by the interest, positive customer
feedback and sales generated by these yeasts in the U.S. in the first two
introductory commercial seasons," said Dr. Ian Ward, President of BSG. "We look
forward to continuing our work with Functional Technologies in offering greater
product selection, support and value to our existing and new customers with the
Company's expanded portfolio of yeast strains."


About Hydrogen-Sulphide (H2S) and Sulphur Dioxide (SO2)

H2S is a gaseous byproduct naturally emitted during wine fermentation, and is
associated with a distinct rotten-egg odour. A well-recognized and widespread
industry problem, H2S is also implicated in the formation of other undesirable
sulphur-containing compounds that can cause sensory faults and reduce the
quality of the wine product. Even very low levels of H2S are indicated to mask
desirable sensory attributes sought by winemakers. The Company's H2S-preventing
wine yeasts feature a proprietary attribute of preventing the formation of H2S
in the fermentation phase, and represent a robust preventative solution
requiring minimal or no changes to existing production processes. 


Although SO2 is commonly used as an additive in winemaking practices as both an
antimicrobial and protective, antioxidant agent, it can also form as a natural
byproduct of yeast during fermentation. Under certain conditions and instances,
excessive levels of SO2 can impede normal fermentation processes or lead to
sensory faults. The new classically bred wine yeasts offering the dual features
of low H2S and low SO2 have been cultivated by Phyterra's scientists and
technical team to provide winemakers with added options and benefits, based on
customer demand. 


Forward-Looking Information

This news release contains forward-looking information (within the meaning of
Canadian securities legislation) about Functional Technologies Inc. and its
future plans. Forward-looking information relate to future events or future
performance and reflect management's expectations or beliefs regarding future
events rather than historical facts, and in this news release include the
statements (the "forward-looking statements") regarding: (1) the ability for the
Company's expanded product portfolio and program initiatives to drive adoption
of its wine yeasts; (2) the expectation that the Company's products and
initiatives will continue to drive customer satisfaction, sales growth and value
in the Company's technology platform; and (3) the expectation that the Company's
collaborations will enable more efficient and rapid expansion of the Company's
portfolio of wine yeast strains, including the availability of new yeast strains
this fall production season. The forward-looking statements in this news release
are subject to various risks, uncertainties and other factors that could cause
the Company's actual results or achievements to differ materially from those
expressed in or implied by forward-looking statements. These risks,
uncertainties and other factors include, without limitation, uncertainty as to
the Company's ability to achieve the goals and satisfy the assumptions of
management; uncertainty as to the demand for the Company's products and the
Company's ability to meet such demand; and general economic factors and other
factors that may be beyond the control of the Company. Forward-looking
statements are based on the opinions and expectations of the Company's
management at the time they are made, and the Company does not assume any
obligation to update its forward-looking statements if those opinions or
expectations, or other circumstances, should change. Reference to the section
entitled "Risks and Uncertainties" commencing on page 16 of the Company's
management's discussion and analysis relating to the fiscal quarter ended
February 29, 2012, which is available on SEDAR at www.sedar.com.


About Functional Technologies Corp.

Functional Technologies develops and commercializes proprietary, advanced
yeast-based solutions to significant challenges in the food, beverage and
healthcare industries. The Company's platform improves the performance of innate
yeast functions, and prevents the formation of naturally occurring toxins and
contaminants that either affect final product quality or are classified by the
World Health Organization as probable human carcinogens. Functional
Technologies' lead technologies include yeasts that prevent and reduce the
formation of the foul-smelling hydrogen sulphide (H2S) and the carcinogens
acrylamide and ethyl carbamate (more commonly known as urethane), by-products of
food and beverage processing. These contaminants are found in many commonly
consumed items, such as fermented food products and alcoholic beverages, and
baked and fried foods. For more information, please visit our website at
www.functionaltechcorp.com.

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