DINTEGRATED BIOPHARMA ACQUIRES TECHNOLOGY
FROM THE FRAUNHOFER CENTER FOR MOLECULAR BIOTECHNOLOGY

FOR IMMEDIATE RELEASE
Contact: Jamie E. Levey
January 13, 2004 Investor Relations
(888) 319-6962

HILLSIDE, NJ, Jan.13, 2004—Integrated BioPharma (AMEX:INB) announced today that it has acquired intellectual property developed by the Center for Molecular Biotechnology (CMB) of Fraunhofer USA, Inc. The agreement covers exclusive rights to proprietary technology and intellectual property in the area of expression, engineering, testing, production and validation of human therapeutic proteins in plants.

The Fraunhofer Center for Molecular Biotechnology has a suite of new technologies, including genetically engineered plant viruses for producing veterinary and human vaccines, therapeutic proteins, antibodies and industrial enzymes in plants. INB, through its wholly owned subsidiary NuCycle Therapy, Inc., has an ongoing collaboration with Fraunhofer to produce generic drugs, and in particular therapeutic proteins using CMB’s proprietary technology. “This agreement creates a partnership that will help to facilitate commercialization of the center’s research and development activities and to open new opportunities for Fraunhofer USA in U.S. and world biotech markets,” says Dr. W. Hartman of Fraunhofer USA.

The agreement between INB and CMB grants INB exclusive rights and eventual ownership of all of the intellectual property and proprietary know-how in the field of vaccine, therapeutic protein and antibody production for human use. The Agreement will result in cash and royalties paid to CMB by INB in exchange for broad rights to the technology.

“The agreement with The Center for Molecular Biotechnology significantly increases our portfolio of intellectual property in the use of plants for making high value-high impact products,” says E.Gerald Kay, CEO of INB. “This intellectual property provides us with an opportunity to develop generic drugs and entirely new therapeutic and nutraceutical products at low cost with high quality and higher safety standards.”

Through its biotech subsidiary, NuCycle Therapy, Inc., INB is developing cancer preventive compounds in transgenic plants. INB serves the nutraceutical, biotech and pharmaceutical industries. Through several wholly owned subsidiaries, INB develops, manufactures and distributes more than 130 products worldwide. Its recent acquisition of Paxis Pharmaceuticals, Inc., places the Company in the position to be a world leader in the production and sale of paclitaxel and related drugs. Further information is available at www.iBioPharma.com.
Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand, and the company’s ability to obtain new contracts and accurately estimate net revenues due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential risk factors that could affect the company’s financial results can be found in the company’s Reports filed with the Securities and Exchange Commission.