Innovative Biotechnologies Acquired by Privately Held Rheonix, Inc.

GRAND ISLAND, NY — December 31, 2008 — Richard A. Montagna, President of Innovative Biotechnologies International, Inc. ("IBI"), today announced the successful completion of an acquisition by privately-held, Ithaca, NY-based Rheonix, Inc. The ability to integrate the biosensor capabilities of IBI, developed in collaboration with scientists at Cornell University with Rheonix's novel CARD™ (Chemistry And Reagent Device) microfluidic technology, will provide a fully automated "point-of-care" (POC) or "point-of-use" (POU) diagnostic platform with applications in a broad spectrum of markets including human and veterinary in vitro diagnostics, biopharmaceutical manufacturing, food and beverage manufacturing, food/water safety testing, and homeland security/defense applications. Moreover, due to novel production methods, extremely rapid prototyping is possible, thus dramatically reducing the time from concept to market.

The fully-integrated system permits the completely-automated analysis of "raw" samples, with all preparative, analytical, and readout functions performed on the CARD™, with virtually no intervention required by the analyst. Thus far, such diverse samples as whole blood, plasma, saliva, vaginal swabs, cell culture specimens, and food and drinking water samples have been introduced onto the CARD™ and successfully analyzed by molecular or immunologic methods. Using molecular methods, all nucleic acid isolation and purification processes, along with gene amplification steps, are fully-automatically performed. Similarly, where immunologic methods are required, the CARD™ can be configured to automatically perform all necessary steps to achieve the desired results.

Coupled with a simple computer interface that controls all functions on the CARD™, this powerful diagnostic platform finally provides a revolutionary means for individuals of varying technical expertise, including unskilled analysts, to easily perform rapid POC and POU testing. Once a sample is applied to the CARD™, even the most sophisticated assays can be performed automatically.

Rheonix can design and produce CARD™ devices to meet the most exacting demands of partners that wish to commercialize products in the burgeoning POC and POU markets. For additional information and background about how the Rheonix CARD™ can meet your needs, please visit us at our web site: www.rheonix.com.