Stirling Products North America Completes First Phase Of Manufacturing Scale-Up

Sydney, Dec 5, 2007 (ABN Newswire) - Stirling Products (ASX: STI) advises that Stirling Products North America Incorporated (STI-NA) has completed the first phase of the manufacturing scale-up at its Charlottetown facility. The increase in production will satisfy future demands for its newly acquired product ProVale(tm), manufactured at the facility.

CEO and Managing Director of Stirling Products, Dr Calvin London indicated that "shortly after the acquisition of Progressive BioActives Inc. (now STI-NA), the Board approved the allocation of funds to double the capacity at the facility." (see ASX announcement 27 August 2007). "The scale-up in equipment and associated doubling allows us to manufacture up to 2.5 metric tonnes of pure ProVale(tm) per annum, which combined with the existing toll manufacturing capability gives us a potential output of 5 metric tonnes per annum."

STI-NA has recently received a grant from the NRC-IRAP under their "Network Members Agreement", which is administered locally by PEI Business Development Inc. The grant covers funding to assess the feasibility and most beneficial scenario for the second and third phases of the scale-up anticipated in 2008.

"We now have sufficient capacity and flexibility to meet the projected increase in sales throughout 2008. Further increases in production capacity in 2008 will be introduced to meet the expansion in ProVale(tm) requirements as a result of new distribution agreements such as the one announced last month in the United States," said Mr Shane Patelakis, President of STI-NA. Stirling indicated to shareholders at its recent AGM, that it had established a sales revenue target for ProVale(tm) and R-salbutamol (primarily from South Africa) of US$1 million by the end of 2008.

About ProVale(tm):

ProVale(tm) is a highly purified, safe and natural immune-stimulating bioactive extract for use as a livestock or pet animal feed supplement. This unique "immunobiotic" has the benefit of boosting the immune system against various bacterial and viral diseases of animals. The product already has sales for poultry and swine in North America with further sales opportunities being pursued in South East Asia.

For more information visit PBI's website:
http://www.progressivebioactives.com

About STIRLING PRODUCTS LIMITED

Stirling Products is developing patented animal growth agents that increase meat production, therefore improving the production efficiency of livestock animals, while decreasing fat accumulation for the benefit of consumers. The Stirling growth agents are under development for swine, poultry, cattle and sheep for global markets and are being positioned to take a major role in reducing the global use of antibiotics and steroid hormones in livestock. Stirling is also developing veterinary medications for heaves in horses through its joint venture in Europe (Pulmovet ApS, www.pulmovet.com) and an obesity treatment in companion animals.

Stirling Products recently acquired a Canadian company Progressive BioActives Incorporated (PBI) under its North American subsidiary, Stirling Products NA Inc. PBI is part of the Bioscience cluster established on located Prince Edward Island, Canada. PBI's lead product ProVale, is the latest high purity beta glucan extract that has been designed as an alternative tool for sustainable livestock management in face of increasing viral disease challenges where antibiotics have no or limited application. ProVale is available for targeted applications in swine, poultry and farmed aquaculture with a future focus on further developing applications for companion animals (e.g. horses, dogs, cats and reptiles).