Fero Industries enters into Asset Acquisition Agreement with GVEST

Jun 10 2010

Fero Industries, Inc. (OTCBB: FROI) (the "Company") is pleased to announce that it has entered into an Asset Acquisition Agreement with GVEST Inc., an Ontario Corporation, for the acquisition of certain intellectual property and other associated rights related to the production, marketing, and distribution of Sucanon^®, a treatment for Type II diabetes.

“The signing of this agreement detailing the terms for the purchase of Sucanon® moves our growth-by-acquisition strategy one step closer to its first significant accomplishment”

Sucanon^® is one of only three approved drugs in the $5.6 billion dollar market for a class of diabetic medications called "Insulin Sensitizers." Pre-clinical and clinical studies in China and Brazil show that Sucanon^® and other insulin Sensitizers lower a patient's blood sugar by increasing the muscle, fat and liver's sensitivity to the body's own naturally produced insulin.

Sucanon^® is currently approved as an Over-The-Counter ("OTC") remedy for Type II diabetes by regulatory authorities in Mexico and is distributed under an agreement with Merck S.A. de C.V. in Mexico and throughout Latin America. Sucanon^® is available in Mexico at both Costco and Wal-Mart. Mexico is the eighth largest pharmaceutical market and has one of the largest diabetic populations in the world.

"The signing of this agreement detailing the terms for the purchase of Sucanon^® moves our growth-by-acquisition strategy one step closer to its first significant accomplishment," said Mr. Kyle Schlosser, President and CEO and Fero Industries. "There may be global market potential for Sucanon^® and we look forward to further developing distribution channels for the benefit of Type II diabetes sufferers."

The Asset Acquisition Agreement is subject to customary closing conditions and completion of necessary due diligence. It is anticipated that the Agreement will close on or prior to June 30, 2010.

SOURCE Fero Industries, Inc.