Commercial Tests Show Clear Superiority of CalciTech's SCC

Business Wire, Oct 13, 2004

HAMILTON, Bermuda -- Significant Cost Savings and Productivity Increases to Be Achieved by Paper Producers

CalciTech Ltd. (OTCBB:CLKTF)(Freiverkehr:XCH) today published the highlights of a number of commercial tests of its high quality coating material SCC. The tests clearly show the superior qualities of SCC, both in terms of product quality and potential cost savings to be achieved by paper manufacturers. Paper producers have shown great interest in CalciTech's revolutionary new coating material. In order to cope with demand levels for sample, the Company has had to increase the production capacity of its small-scale production plant in Leuna, Germany.

Some of the highlights were:

--The use of SCC at one paper mill confirmed the superior glossability of SCC. The use of SCC will allow this producer to reduce the number of calendering steps, thereby increasing production by EUR 7,200,000 per annum. In addition, lowering the number of calendering nips produces bulkier and stronger paper, an important selling point for certain applications.

--Trials have shown that SCC consumes less binder in coating mixtures. The potential binder saving was estimated at up to 10%. For a mill producing 250,000t of coated paper per annum, this translates in savings of up to EUR 1,125,000 annually.

--A machine trial at a German paper mill proved the successful replacement of calcined clay with CalciTech's CalciLS. Customers typically pay in the range of EUR 550/t dry for calcined clay. CalciTech's client consumed 6,000tpy. The switch to SCC will lead to a saving of EUR 1,000,000 per annum.

--In some papers, SCC gives better coverage allowing the paper mill to reduce coat weight, which will lead to cost savings.

--SCC spiked coating in one customer application showed a 5 - 10 degree Celcius higher blister temperature allowing the mill to dry faster and thereby increase output.

--The superior rheology of SCC at low, medium, high and ultra high shear improves runnability meaning less breakage and down time, again leading to significant cost savings.

--The same superior rheology allows for coating mixtures with higher solids content, requiring less drying and therefore a higher productivity.

--Tests run with SCC show no abrasiveness and significantly reduced dust levels on the paper machine. This translates in less maintenance/downtime/wire change, again leading to running cost savings and productivity increases.

--Using SCC enables paper manufacturers to produce papers with higher brightness and gloss, which in turn strengthens the paper producer's competitiveness.

--Using SCC has been shown to improve printability, leading to a reduction of ink use while achieving the same or higher quality output. This is an important selling point towards the printing industry, These savings, which can be substantial due to the high price of industrial inks, provide the paper producer with additional competitive strengths.

CalciTech has developed a new and patented process that converts industrial lime waste with carbon dioxide gas into a high quality material for the paper industry. The company's strategy is aimed at market entry into the high-end of the paper industry, where growth rates and prices are high. The company is currently operating a small-scale production plant, which turns out samples for trial runs by commercial paper producers. Industry interest has been so high that the production capacity of the facility had to be upgraded substantially in order to cope with demand. On the back of highly successful trials, CalciTech has received Letters of Intent "LoI" from seriously committed paper producers. LoI covering substantially all the production capacity of the company's planned 40,000 ton facility in Germany.

This press release contains forward-looking statements which are subject to a number of contingencies and uncertainties, including but not limited to, market acceptance for CalciTech products, manufacturing of CalciTech products in a commercial setting, obtaining adequate financing and construction management for products and obtaining appropriate permits. Such forward-looking statements are not guarantees of future performance, and are based on numerous assumptions about future conditions that could change.

No Stock Exchange has reviewed or accepted responsibility for the adequacy or accuracy of this press release.