Successful trials for insect protein aquafeed additive

Neptune Industries, Inc., a next generation aquaculture technology company with diversified interests in production system technology, food science, sustainable seafood, waste-to-energy production, and related natural and organic food products, announced today that Phase II trials on the Company's Ento-Protein(TM) research has been successfully completed.

The completion of Phase II trials represents the pivotal milestone in developing a viable dietary protein alternative in the $7 billion dollar market for fishmeal. Phase I selected four species of suitable insects based upon a myriad of key production and nutritional parameters. The industry has been focused on vegetable-based alternatives, however these proteins are not well digested by carnivorous fish. Phase II trials proved that fish fed a diet containing Ento-Protein(TM) actually tasted better than those fed fishmeal. The final trial, Phase III, will be used to select the proper blend of insects to achieve the fastest growth rate and optimum digestibility in farm raised fish. The Company anticipates completing the Phase III trial in the first quarter of 2008, constructing its first pilot production facility, and bringing product to market by year end.

The Phase II trials compared juvenile hybrid striped bass fed on a typical fishmeal-based diet, with those fed with Neptune's Ento-Protein(TM), consisting of 100% of the fishmeal portion of their diet. Phase II trial results indicated that the fish fed with Ento-Protein(TM) did not change their behavioral patterns. A panel of sensory experts that evaluated the trials indicated that they favored the fish fed with Ento-Protein(TM) over those fish fed with traditional fishmeal.

Ento-Protein(TM) is a patent-pending high protein fishmeal derived from the controlled, mass production of select insect species, for use in fish and livestock diets. The percentage of fishmeal used in fish feed has declined due to a steady rise in price. According to a key report by Pike and Barlow the market for fish feed is expect to grow from 19.5 million metric tons in 2003 to 37.2 million metric tons in 2010. This market could widen substantially, with the addition of a sustainable, high protein alternative such as Ento- Protein(TM).

Neptune Industries has been involved in a cooperative research relationship with Mississippi State University since January 2007. Phase II trials were a collaborative effort between the Departments of Entomology, Wildlife and Fisheries, and Food Science and Technology.

Dr. Lou D'Abramo, Professor, Department of Wildlife and Fisheries at Mississippi State stated, "In the recent feeding trial, the Ento-Protein(TM) replaced fishmeal as an ingredient of a sustainable diet for hybrid striped bass. No differences in feeding behaviors were found when comparing the control group with the test group. This observation represents an important positive step in realizing the potential for Ento-Protein(TM) in becoming an effective replacement for fishmeal in carnivorous fish diets."

Dr. Patti Coggins, Director, Dept. of Food Science and Technology at Mississippi State commented, "The results of our recent sensory evaluation comparing the taste, texture, aroma, and appearance of the fish on the Ento- Protein(TM) feeding trials were very encouraging. A sensory panel of experts actually favored the flavor of the fish fed with the Ento-Protein(TM) diet over fish on the traditional fishmeal based diets. Also worth mentioning was the break through observation that both the raw and cooked fish had less of a 'fishy' aroma due to the Ento-Protein(TM) feeding. This could be seen as a positive attribute for many potential consumers and positively impact the way alternatives for fish feed are viewed."

President of Neptune Industries, Ernest Papadoyianis, stated, "We believe that our Phase II results set the stage for providing a global solution to the protein shortage that has been plaguing the global aquaculture market. Our research team at Mississippi State University is comprised of some of the most experienced, knowledgeable and recognized individuals in their respective fields. Their unanimous positive feedback to date has further fueled our excitement for the commercialization potential of Ento-Protein(TM). We look forward to commencing our Phase III trials for growth and digestibility very soon."

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Successful trials for insect protein aquafeed additive