Fero Industries closes acquisition of rights related to production, marketing and distribution of Sucanon

Jul 1 2010

Fero Industries, Inc. (OTCBB: FROI) (the "Company") is pleased to announce that it has closed 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 completion of the Sucanon® transaction is a significant milestone for our growth-by-acquisition strategy within the healthcare sector”

"The completion of the Sucanon^® transaction is a significant milestone for our growth-by-acquisition strategy within the healthcare sector," said Mr. Kyle Schlosser, President and CEO of Fero Industries. "Our immediate focus can now shift toward the development of new products, and expose Sucanon^® to more global distribution channels_, and build the Fero management team, that will facilitate our future growth."

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 sensitizer's 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 will be distributed under an agreement with Merck S.A. de C.V. in Mexico and throughout Latin America. Sucanon^® will be 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.

SOURCE Fero Industries, Inc.