IRI Separation Technologies Inc.: Update and Restructuring Plan

IRI Separation Technologies Inc. (TSX VENTURE:IRI) - Announces that it has
entered into negotiations to Re-structure and Merge its Operations with an
Equity Investor - Marketing Group.


IRI, has entered into negotiations with a Toronto Group to provide $3,000,000 of
equity funding together with Marketing expertise. 


In June of 2008 the Company was unsuccessful in raising new equity capital,
required to launch a Marketing Program for its MUNO BOOST - antibody product
line. This resulted in the closing of the Alberta processing facilities and the
laying off of its employee work force.


The Company has continued to negotiate with potential customers for Specific
Antibody production contracts - namely its signing of a Letter of Intent with
PharmaFoods International of Kyoto, Japan, to use their Vaccine to produce
Helicobacter Pylori antibodies to service their existing market and to jointly
develop and market an Avian Influenza specific antibody.


The Letter of Intent also includes Sceti K.K. as a partner to market and
distribute IRI products in Japan. Sceti K.K. provides market entry for foreign
companies that offer innovative solutions to problems in the fields of medical
diagnostic and industrial manufacturing. - News Release of 12 February 2009.


To meet its obligations under the Japanese and other potential supply contracts,
to perform clinical trials on its C.Difficile antibody program, to launch a
Marketing Program for its MUNO BOOST, and make a formal arrangement with its
creditors, the Company needs the additional equity funding.


The assets of the egg breaking facility have been removed from the previously
leased egg breaking premises and are currently being stored at the antibody
processing facility. When the assets of the egg breaking facility were acquired,
they were charge with an encumbrance in favour of Farm Credit Canada and part of
the share purchase price paid by IRI to the vendor was hypothecated pending
discharge of such encumbrance. A guarantor of the vendor, the Alberta Egg
Producers Coop (Coop), are currently making payments to Farm Credit Canada and
the processing facility landlord, relative to the storage of the egg breaking
equipment, and have entered into discussions with that landlord to rent adjacent
facilities, for the re-installation of the egg breaking equipment and
re-starting an egg breaking operation.


In order to effect the re-structure of IRI and consolidate the company debts, a
portion of the equity funding contemplated by the "Toronto Group" will be made
available to the Trustee under the formal restructuring program and negotiations
will continue with the Coop for the supply of "Specific Antibody Egg Yolk" for
antibody production. 


The filing of a Formal Proposal is a legal document that results in a "Stay of
Proceedings" of all and any actions against the Company and provides for the
court approved Trustee to review the validity of creditor claims. If the
Proposal is accepted by two thirds of the Company's creditors with proven claims
to the Trustee, the terms are binding on all creditors. The purpose of a
Proposal is to protect the Company's assets, resolve wage disputes, ascertain
the relative positions of the landlords and Farm Credit Canada/Coop as Guarantor
and allow the Company to consolidate its debts and arrange funding to continue
its operations.


The negotiations with the Toronto Group will provide for some of the proposed
equity funding to be made available through the Trustee to the IRI Separation
Technologies Inc. creditors and an exchange of IRI shares for shares of the
Toronto Group. The intent is to provide $3,000,000 of equity funding, to
consolidate the company's liabilities to its creditors and continue the
marketing and development of the Company's antibody program.


Under the restructuring program, Dr. Brian Simmons, has resigned as a Director
but will remain as an advisor to the Company on antibody technical matters.


The terms of the Formal Proposal and the Share exchange arrangements are
currently being developed by the lawyers for the respective parties and will be
forwarded to creditors and shareholders in due course.


It is proposed that the transaction, subject to TSX Venture Exchange and
appropriate creditor and regulatory approvals, will be concluded by the 31st
July, 2009.


About IRI Separation Technologies Inc.

IRI Separation Technologies Inc. (TSX VENTURE:IRI) is a biotechnology company
that specializes in the extraction development and commercialization of
monoclonal and polyclonal immunoglobulin antibodies for virus and bacteria
related health issues. Intended for use as a Nutraceutical for human
consumption, the antibodies are derived from bovine whey and chicken eggs. The
immunoglobulin antibodies are intended for both the general and specific
antibody market.


Submitted on behalf of the Board of Directors of IRI

Forward Looking Statements: The above contains forward looking statements that
are subject to a number of known and unknown risks, uncertainties and other
factors that may cause actual results to differ materially from those
anticipated in our forward looking statements. Factors that could cause such
differences include: changes in world markets for Nutraceuticals, equity market
conditions, costs and supply of materials relevant to the Nutraceutical
industry, change in government and changes to regulations affecting the
Nutraceutical industry. Forward-looking statements in this release include
statements and the potential financing. Although we believe the expectations
reflected in our forward looking statements are reasonable, results may vary,
and we cannot guarantee future results, levels of activity, performance or
achievements.
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