U.S. First Source of Domestic Natural Rubber Latex is Commercialized

May 22, 2005

Yulex Corporation SIGNS HISTORIC AGREEMENT TO DISTRIBUTE FIRST Guayule-based natural LATEX product WORLDWIDE

CARLSBAD, Calif.; May 12, 2005– Yulex Corporation of California announces a groundbreaking commercial distribution agreement to sell the only U.S. produced natural rubber latex material on the market that is safe for healthcare workers and patients who suffer from tropical latex allergy.

Yulex has signed an exclusive five-year distribution agreement with leading international natural rubber suppliers and distributors Centrotrade Rubber USA and Centrotrade Deutschland GmbH. Centrotrade’s U.S. and European operations will distribute Yulex Natural Rubber LatexTM worldwide to medical device manufacturers of surgical gloves, condoms, catheters and other latex-based medical products that are seeking an alternative to lower performing synthetic latex materials. Yulex Natural Rubber Latex is derived from Guayule (why-YOU-lee), a desert plant indigenous to the U.S. Southwest and free of the proteins that cause tropical latex allergy, using technology developed originally by the Agriculture Research Service of the U.S. Department of Agriculture and licensed to Yulex for commercialization.

"We have been actively planning for this moment since the company was founded in 1997," says Jeff Martin, president and chief executive officer of Yulex Corporation. "This combination of technology, market acumen and channel access makes the Yulex – Centrotrade partnership an ideal vehicle for the rapid commercialization of this critical material for medical and consumer markets worldwide."

Eight to 12 percent of medical workers in the U.S. and Europe suffer allergic reactions to the proteins in tropical, or Hevea, latex. Although latex medical gloves and condoms are a primary focus for this new material, latex medical products are essential tools in healthcare for a wide range of procedures ranging from dental surgery to cardiac catheterization. Until now, no safe alternative source of natural rubber latex existed.

"This kind of an innovation only comes around every 30 years in the latex industry," says Horst Sakreida, managing director of Centrotrade Deutschland GmbH in Frankfurt, Germany. "There is an enormous need for this material in the medical industry and it is a great opportunity to be involved in a major market shift."

"To Centrotrade, the agreement represents more than $150 million in product throughput over the course of the next five years," says Tom Marsh, president of Centrotrade USA. "We have been most interested in the development of this revolutionary latex material and welcome the opportunity to partner with Yulex."

About Yulex Yulex is a materials science company producing a U.S. source of natural rubber derived from the desert plant known as Guayule (why-YOU-lee). The company, along with industrial strategic partners, is currently developing technology to extract other specialty chemicals and biofuels from the desert plant. Yulex, a privately-held company, was founded in 1997 and based in Carlsbad, California. For more information on the benefits of Yulex Natural Rubber Latex™, please see www.yulex.com.

About Centrotrade Centrotrade Rubber USA and Centrotrade Deutschland GmbH belong to the Raiffeisen Centrobank AG Group, based in Vienna, Austria. Together with their sister company in Singapore and supported by affiliations in Kuala Lumpur, Jakarta and Manila, Centrotrade is a leading international natural rubber trading group and supplier to the medical supplies industry and almost all large factories manufacturing tires and rubber goods worldwide. For more information about Centrotrade, please see www.centrotrade.com.

Company Contact:
Yulex Corporation
Jeffery Martin
President and CEO
760.476.0320
jmartin@yulex.com

Media Contact:
(W)right On Communications
Betsy Brottlund
760.735.9411
bbrottlund@wrightoncomm.com