Perth, May 30, 2008 (ABN Newswire) - Stirling Products (ASX: STI) advises that its North American wholly-owned subsidiary Stirling Products North America Inc. (STI-NA), has signed a Collaboration and Supply Agreement for its lead product ProVale(tm), a highly purified beta glucan.

Under the terms of the agreement, Biologics International Inc., will manufacture ProVale(tm) using the patent pending process optimized for use in Stirling's Canadian facility on Prince Edward Island.

Mr Shane Patelakis, President of STI-NA commented, "STI-NA (trading as Progressive BioActives, Inc) is pleased to have formalized an agreement with this toll manufacturer and distributor with whom we have only had an informal relationship until recently. They have the necessary expertise and capacity to provide Stirling with valuable back-up supply capacity for manufacture of ProVale(tm), especially over the period when we will be qualifying our new expanded production line scheduled for the fourth quarter this year."

Biologics International has been producing yeast extracts since 1989. During that time the company has developed considerable expertise in the manufacture of a range of cosmetic, nutraceutical and pharmaceutical products for domestic and export markets.

The President of Biologics, Mrs Amy Miles has a number of patents in the area of yeast extracts and was one of the original patent holders on Stirling's ProVale(tm) beta glucan technology. "We are pleased with the opportunity to work with Stirling and be a part of the growth and the expansion of their existing product lines," stated Mrs. Miles.

"This Agreement provides Stirling with two other important aspects to its business, apart from the obvious increased production capacity," indicated Dr Calvin London, CEO and Managing Director of Stirling Products Limited. "Firstly, it provides a very valuable second manufacturing facility which is generally accepted in the pharmaceutical industry as a 'good insurance policy'. Secondly, together with the increased resource of Biologics, we can commence the development of several second tier ProVale(tm) products that will give us a greater penetration into the livestock and companion animal market."

ProVale(tm) has been shown to be an effective feed additive to maintain performance and health in broiler chicken, swine and especially in aquaculture. In swine, ProVale(tm) has also been shown to significantly enhance vaccine performance, antibody titres, number of piglets weaned and prevent performance lags normally associated with vaccination.