Nano-Electronics Firm Spun Off from U of S Research

Posted August 28, 2002


FOR IMMEDIATE RELEASE -- August 28, 2002 2002-08-06-OTHER

Nano-Electronics Firm Spun Off from U of S Research

With $771,000 in "seed" money, a spin-off company from University of
Saskatchewan research money was formally launched today. It will develop and
commercialize a revolutionary nano-electronics technology based on discovery
of a "molecular wire."

The new firm -- Adnavance Technologies Inc. -- will focus on development of
highly sensitive nano-wires that can be used for a variety of electronic
applications including computing and biosensors (detection devices that can
be used to improve diagnosis and predict disease outcome). Nano-electronics
devices are many times smaller than conventional electronic devices.

An agreement officially launching the start-up was signed this month between
Adnavance and University Medical Discoveries Inc. (UMDI), a Toronto-based
technology development company focusing on early-stage medical and life
science research. Adnavance will be based at University of Saskatchewan
Technologies (UST) Inc., the U of S technology transfer company, while
additional investment is sought.

UMDI announced today they will invest $223,000 in the new firm. Two years
ago, UMDI provided $277,000 to the researchers to test the technology.
Development work has also been supported through a $271,000 grant from the
Saskatchewan government's Strategic Investment Fund. Since then, significant
progress has been made and the scope of the project has expanded.

"We are optimistic about the future of Adnavance and see this as an
opportunity for Saskatchewan to become a global leader in this exciting area
of nanotechnology," said UST President Branko Peterman.

The firm's scientific team will be led by U of S biochemist Jeremy Lee and
associate chemistry professor Heinz-Bernhard Kraatz. The new technology will
be based on a new type of DNA molecule called M-DNA that can conduct
electricity. Lee's lab was the first in the world to create M-DNA. Kraatz
has the expertise to attach electro-chemical sensor molecules to M-DNA and
to read signals that emanate from M-DNA.

"Our initial decision to invest, and this subsequent investment, reflect our
confidence in the ability of professors Lee and Kraatz to prove the value of
this exciting technology," said UMDI President Brian Underdown.

M-DNA (the "M" stands for "metal-containing") was created by inserting
conducting metal ions, such as zinc, cobalt, or nickel, into the centre of
the DNA helix. The result is an effective conductor that is only one
molecule (roughly two nanometers) thick, and which is self-assembling (a
natural property of DNA).

The technology is a marriage of molecular biology and electronics, and there
are many applications including use in nanometer-scale, bio-electric
circuits for a variety of devices.

"This intriguing technology is obviously at an early stage of development
and will require ongoing support from the U of S, investors and partners as
it progresses," said Henry Geraedts, Chair of the Adnavance Board of
Directors and Executive in Residence with MDS Capital Corp., a leading life
sciences venture capital firm. "Its unique characteristics and
proof-of-concept data allow us to envisage its use in a variety of
applications."

UST began commercializing M-DNA in 1997 when the first patent was filed.
Since that time, UST has filed patents worldwide. UST will provide an
exclusive, worldwide license to Adnavance to use the technology for
commercial purposes.

Prof. Lee is one of the U of S's outstanding medical researchers whose
interests include basic DNA structure, antibodies, and lupus. In 2001, he
was awarded a research grant under the Regional Partnership Program, a joint
program of the Canadian Institutes of Health Research and the Saskatchewan
government.

"We discovered M-DNA 10 years ago and at the time, it was just an
interesting curiosity," says Lee. "I never dreamed that M-DNA would develop
into a company. The concept of M-DNA is so deliciously simple, yet we can do
so much with it."

Prof. Kraatz was recently awarded a Canada Research Chair in Biomaterials
and in 2001 was awarded the Petro-Canada Young Innovator Award. "I think we
can achieve great things with this technology," said Kraatz.

For more information about U of S spin-off companies and UST Inc., visit
www.usask.ca/ust/

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For more information, contact:

Branko Peterman
UST Inc. President
University of Saskatchewan
(306) 966-7335

Brian Underdown
President and Chief Operating Officer, University Medical Discoveries Inc.
(416) 213-4710

Kathryn Warden
U of S Research Communications Officer
(306) 966-2506