Bioniche, Through Distributor, Provides Exclusive Supply to Angus Association
in Australia

-Bayer Animal Health enters exclusive supply agreement for Bioniche reproductive products-

BELLEVILLE, ON, Dec. 6 /CNW/ - Bioniche Life Sciences Inc. (TSX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced that its Australian distributor, Bayer Animal Health, a division of Bayer Australia Limited, has entered into an exclusive supply agreement with Angus Australia. Under the agreement, Bayer will supply Bioniche cattle reproductive products on an exclusive basis to the breed society for a three-year period. The Angus Association has a goal of facilitating the production of world-leading Angus genetics and branded beef.

Bioniche signed a distribution agreement with Bayer Animal Health for the distribution of two Bioniche cattle reproduction products in June of this year. Under the agreement, Bayer Animal Health became the exclusive distributor of Bioniche's Cue-Mate^TM and Pregnecol^TM   products in Australia. Cue-Mate^TM and Pregnecol^TM are high quality products with a proven track record in delivering consistent results and enhancing reproductive performance in both beef and dairy cattle. These are the products that will be supplied to Angus Australia.

More than 1,300 cows have now been artificially inseminated using the Bioniche products through the "Angus Sire Benchmarking Project" run by Angus Australia. Bob Dent, Project Co-ordinator, said, "We expect to shortly reach our target of 2,000 cattle programmed and inseminated using a one-cycle artificial insemination (AI) program in commercial herds. This is the largest sire progeny test programme ever launched in Australia and the members who have nominated bulls will gain great benefits from their involvement. Bioniche and Bayer have provided technical advice and personnel to ensure that we receive maximum benefit from the work that we have put into the AI activities."

"The agreement with Angus Australia is an indicator of the strength of our relationship with Bayer Animal Health in Australia," said Andrew Grant, Divisional President of Bioniche Animal Health Export Sales, Europe and A/Asia. "Angus Australia's commitment to the exclusive use of the Bioniche reproductive products distributed by Bayer provides recognition of the quality of these products and their perceived value in Angus Australia's artificial insemination programme."

Pregnecol^TM is a well-established pregnant mare serum gonadotrophin (PMSG) - or equine chorionic gonadotrophin (eCG) - choice of veterinarians and producers in Australia, and Bioniche is the only supplier of domestically sourced and manufactured product. Cue-Mate^TMoffers an efficient and flexible progesterone treatment system, using specially designed treatment pods that attach to a reusable "wishbone" carrier system to deliver the progesterone for maximum effect. Cue-Mate^TM is the estrus synchronization device of choice for a growing number of Australian farmers.

About Bioniche Life Sciences Inc.

Bioniche Life Sciences Inc. is a research-based, technology-driven Canadian biopharmaceutical company focused on the discovery, development, manufacturing, and marketing of proprietary products for human and animal health markets worldwide. The fully-integrated company employs 214 skilled personnel and has three operating divisions: Human Health, Animal Health, and Food Safety. The Company's primary goal is to develop proprietary cancer therapies supported by revenues from marketed products in human and animal health. For more information, please visit www.Bioniche.com.

About Bioniche Animal Health

Bioniche Animal Health develops, manufactures and markets animal health biopharmaceutical products worldwide. It has product development, manufacturing and marketing facilities in Belleville, Ontario, Canada; marketing and production facilities in Athens, Georgia, U.S.A.; Pullman, Washington, U.S.A.; and Armidale, New South Wales, Australia. The Company has progressively grown by using biotechnology to provide the animal health market with innovative solutions to meet the changing needs of the animal health industry.

The Company has a product portfolio of more than sixty products, which can be categorized primarily in the following groups: Reproduction and embryo transfer products; products based on hyaluronans; immunostimulant products; polyclonal antibodies; vaccine products; and nutraceuticals. These products are marketed directly to veterinarians in Canada, the United States, Australia and Europe, and through selected distributors in the rest of the world.

Bioniche Animal Health (A/Asia) Pty. Ltd. was established as Vetrepharm (A/Asia) Pty. Ltd. in July, 1988. In 2002, the unit's name was changed to Bioniche Animal Health (A/Asia) Pty. Ltd. The business unit has a broad base, which includes sales and marketing, research and development, active pharmaceutical ingredient (API) production and finished sterile injectables facilities. The Australian business is conducted from two sites: Melbourne, Victoria, where sales and marketing, customer support and technical service are located; and Armidale, New South Wales, where production (manufacturing facility, farm/research and development facility) is located.

Except for historical information, this news release may contain forward-looking statements that reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.

For further information:

Jennifer Shea, Vice-President, Communications, Investor & Government Relations
Bioniche Life Sciences Inc.
Telephone: [phone]
Cell: [phone]
[email protected]