ZPRO

ZPRO CHEMICAL , INC.

1) ZPRO** has recently moved the California Branch Office to a new location.

The Greenbriar
1618 East Gate Way, Suite 304
Pleasanton, CA 94566
Phone (925) 594-0900
Fax (925) 426-6032

**ZPRO does business in California under the business name of "ZCHEM Pro, Inc.", which is the name of the California Corporation subsidiary that is owned by ZPRO Chemical, Inc. and is registered to conduct corporate business in California.

2) ZPRO has recently completed in vitro and in vivo tests for a lead ZPRO anti-obesity candidate, Compound B. The results showed good efficacy without any observed toxicity and without any observed side effects.

The efficacy testing of the ZPRO Compound B in animal tests showed an equal amount of lipase inhibition (fat digestion blocking) compared to lipase inhibition by other lipase inhibitors such as Xenical®. However, the usual side effects due to undigested oil were avoided since the oil absorbing and dispersion ability of Compound B were remarkably successful.

Oil binding by the ZPRO Compound B proprietary fiber was greater than 16 times its weight of oil in an aqueous environment (such as the digestive system) compared to Chitosan which only bound 3 times its weight of oil in an aqueous environment.

A well-designed animal test was used to compare the effectiveness of the candidate ZPRO Compound B to an Xenical®/chitosan (an approved anti-obesity drug combined with a natural fiber). This ZPRO Study "MILES2" showed a remarkable result with the ZPRO Compound B reducing weight gain by 96.8% compared to a control group of animals receiving a high fat diet, while a combination of the commercially available **Xenical® with the natural fiber Chitosan only reduced weight gain by 64.5% compared to the control group. The ZPRO Compound B also avoided the significant oily stool side adverse effects that were still observed with the commercially available drug Xenical®, even when Xenical® was administered in combination with the Chitosan fiber.

The ZPRO Compound B contains a proprietary natural fiber (a polysaccharide polymer fiber) modified to absorb oil and evenly distribute itself in water along with the absorbed oil. The proprietary modified natural fiber has linked to its polymer support backbone a lipase inhibitor alcohol (an oxetanone alcohol, tetrahydroesterastin) which is the same lipase inhibitor alcohol that is bound to a modified protein support in Xenical®.

The ZPRO Compound B is patented in the USA and corresponding patents have been filed in 80 countries.

ZPRO Chemical Inc. finds such results very promising. ZPRO is confident that future studies will provide efficacy and safety profiles prove the ZPRO Compound B will provide a better alternative than currently commercially available anti-obesity treatment drugs.

**Xenical® is a registered trademark of F. Hoffmann-La Roche Ltd.

3) November 1, 2000 - Press Release Regarding ZPRO Anti-Obesity Compounds Lipase Inhibitor Compounds With Oil Absorbing And Hydrophilic Properties

-- (INTERNET WIRE) -- 11/01/2000 -- ZPRO, Chemical Inc., a Delaware corporation for chemical research, announces that it has discovered a new class of anti-obesity drugs and identified several promising drug candidates with interesting anti-obesity properties. These candidates are each a single compound having the following properties: (a) lipase inhibitor activity similar to the anti-obesity drug **Xenical® at their therapeutic dose, (b) oil absorption properties much like chitosan (an oil binding polymer obtained from shell-fish), which is marketed as a fat blocker, and (c) the ability to bind oil while still being hydrated and dispersed in water.

These compounds are expected to minimize the undesired side effect of anal oil discharge, which can be an unpleasant side effect of the anti-obesity compound, Xenical® . Researchers, in an effort to address such unpleasant side effects of Xenical® , have published earlier this year results from research with compositions which combine Xenical® with chitosan to take advantage of chitosan's oil binding properties. However, research by ZPRO, Chemical, Inc. has shown that such a combination can still sometimes result in unpleasant side effects, including anal "oily blob" discharges, which are a mixture of undigested oil associated with chitosan.

Promisingly, the hydrating and aqueous dispersing properties of the anti-obesity compounds identified by ZPRO, Chemical, Inc. are expected to minimize anal "oily blob" side effects found with compositions such as a Xenical®/chitosan combination by absorbing undigested oil and dispersing it throughout the stool instead of in a "blob".

Bruce K. Lagerman, Esq., the attorney managing the licensing of these promising new compounds says that, "This new class of anti-obesity compounds could revolutionize the diet and obesity industry by providing a drug with a fat blocking effect and potentially minimal side effects compared to other drugs in this field. We are very excited about the new technology and eager to see these drugs get through FDA and to where they can start helping people who struggle with controlling their weight. These compounds could help to provide a reduction in unpleasant side effects of lipase inhibitors and provide welcome relief to many people who need to reduce their caloric absorption of oils and fats in order to help control their weight."

Bruce Lagerman, can be contacted at Lagerman & Associates, P.C., 11921 Freedom Drive, Suite 550, Reston, VA 20190, Tel. 703-904-4314, or facsimile 703-319-9637 for further information regarding this exciting new class of drug candidates.

Contact: Bruce Lagerman
Company: Lagerman & Associates
Phone: 703-904-4314
Fax: 703-319-9637

**Xenical® is a registered trademark of F. Hoffmann-La Roche Ltd.