30.07.04

30.7.2004: Meldung: Burcon announces year-end results

Burcon NutraScience Corporation (TSXV - BU) ("Burcon") today reported financial results for the fiscal year ended March 31, 2004 and provided a review of the year"s operations.

During the past year, Burcon successfully concluded its partnering strategy with the announcement in September 2003 of the signing of a License and Development Agreement with Archer Daniels Midland (ADM). The agreement marries ADM"s strengths in the development, production, sales and marketing of specialty food ingredients with Burcon"s novel protein extraction technology.

Some of the other highlights of the past year include:

- Obtained a joint listing of Burcon"s shares on the Frankfurt Exchange,
Germany"s largest stock exchange. This listing increases the profile
of Burcon with both private and institutional investors across Europe
enabling a broader shareholder base;

- Completed two private placements raising gross proceeds of
$5.15 million. The proceeds from these private placements will enable
the Company"s continued development of its canola and other protein
products;

- Entered into a research collaboration with the Fraunhofer Institute
(Fraunhofer Institut Verfahrenstechnik und Verpackung, Freising
Germany) to investigate potential health benefits of Burcon"s canola
proteins Supertein(TM) and Puratein(R); and

- Filed four additional patent applications. Bringing the total to
seventeen patent filings that Burcon has made since October 1999,
fourteen of which relate directly to the production, use and
composition of Puratein(R) and Supertein(TM).


In the coming year, Burcon will focus its efforts on supporting our alliance partner ADM as we work to complete the development task before us. In addition, we will also continue to research promising applications for Puratein(R) and Supertein(TM) and derivatives of those proteins.

Financial Results and Highlights
--------------------------------


Burcon reported a net loss of $2,596,054 or $0.16 per share for the year ended March 31, 2004, as compared to $3,439,371 or $0.23 per share for the prior year.

Research and development (R&D) expenses decreased by approximately $625,000 in 2004 for two reasons. Firstly, salaries and benefits, which account for about one-half of R&D expenditures, decreased by approximately $272,000 in fiscal 2004 as compared to the prior year. In late fiscal 2003, Burcon restructured its management and staff to target its operational focus on finding a development partner to assist in taking its protein extraction technology to commercial production. In addition to trimming some of the technical and supervisory staff at the Winnipeg facility, a senior management position was also eliminated. Secondly, there was a higher level of R&D activity in fiscal 2003 that included research work on Burcon"s core technology aimed at improving colour and flavour, as well as research on isolating and purifying phytate. In contrast, in fiscal 2004, there were comparatively lower levels of laboratory operation, analyses and testing and consulting expenses.

General and administrative expenses decreased by approximately $217,000 in 2004, with about one-half of the decrease attributable to the elimination of a senior management position in 2004. The balance of the decrease is due to a reduction of approximately $31,000 relating to the production and printing of the annual report, $27,000 relating to investor relations meeting costs and a decrease in public relations fees and press release expenses of about $17,000. Travel and meals expense also decreased by approximately $50,000, due primarily to a significant amount of travel expenses incurred in fiscal 2003 related to the negotiation of the ADM agreement.

Total professional fees incurred in 2004 decreased by about $34,000 over 2003. As a result of finalizing the ADM agreement in September 2003, legal and consulting fees associated with the ADM agreement decreased in fiscal 2004 by approximately $89,000. This was offset by an increase of about $60,000 in patent legal fees and disbursements due to the increased patent filing activities and the maintenance of existing patents.

The increase in management fees and services is attributed primarily to the stock-based compensation expense recorded in relation to corporate advisory services provided.

Burcon completed two private placements during the year, with net proceeds of $4.73 million after issue costs. Funds raised are being used for general working capital purposes and for the continued development of its canola and other protein products. At March 31, 2004, the Company"s cash position was $3,573,804, as compared to $939,769 at March 31, 2003. Burcon"s management believes that it has sufficient resources to fund its expected level of operations and working capital requirements to at least November 2005.

About Burcon NutraScience
-------------------------


Burcon is a research and development company developing a portfolio of composition, application and process patents around its plant protein extraction and purification technology. The goal of Burcon"s research is to develop its patented process to utilize inexpensive oilseed meals for the production of purified plant proteins that exhibit valuable nutritional, functional or nutraceutical profiles. Burcon, in conjunction with Archer Daniels Midland, is currently focusing its efforts on developing the world"s first commercial canola proteins, Puratein(R) and Supertein(TM). Canola, recognized for its nutritional qualities, is the second-largest oilseed crop in the world after soybeans. Burcon"s goal is to develop Puratein and Supertein to participate with soy, dairy and egg proteins in the expanding multi-billion-dollar protein ingredient market, with potential uses in prepared foods, nutritional supplements and personal care products.

ON BEHALF OF THE BOARD OF DIRECTORS

"Johann F. Tergesen"
Johann F. Tergesen
President & Chief Operating Officer


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein. This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact. Our expectations regarding the prospect for future success depend upon our ability to develop and sell products, which we do not produce today and cannot be sold without further research and development. When used in this press release, the words "goal," "intend," "believes" and "potential" and similar expressions, generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties. In light of the many risks and uncertainties surrounding the development of a source of protein from canola meal, you should understand that we cannot assure you that the forward-looking statements contained in this press release will be realized.

Burcon NutraScience Corporation
Consolidated Balance Sheets
As at March 31, 2004 and 2003
2004 2003
$ $
Assets

Current assets
Cash and cash equivalents 3,573,804 939,769
Amounts receivable 15,506 23,121
Prepaid expenses and deposits 66,847 25,131
----------------------------
3,656,157 988,021

Property and equipment 1,407,638 1,756,319

Deferred financing costs - 30,363

Goodwill 1,254,930 1,254,930
----------------------------

6,318,725 4,029,633
----------------------------
----------------------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities 278,418 237,101
----------------------------

Shareholders" Equity

Capital stock 14,650,662 10,902,789

Contributed surplus 1,350,065 1,350,065

Warrants 2,606,430 1,560,194

Options 49,720 -

Deficit (12,616,570) (10,020,516)
----------------------------

6,040,307 3,792,532
----------------------------

6,318,725 4,029,633
----------------------------
----------------------------



Burcon NutraScience Corporation
Consolidated Statements of Operations and Deficit

Years ended March 31,
2004 2003
$ $
Expenses
Research and development 1,330,711 1,956,045
General and administrative 741,838 958,780
Professional fees 453,910 487,415
Management fees and services 113,280 84,469
Amortization 3,854 4,647
----------------------------

Loss from operations (2,643,593) (3,491,356)

Other income
Interest 47,539 51,985
----------------------------

Loss for the year (2,596,054) (3,439,371)

Deficit, beginning of year (10,020,516) (6,581,145)
----------------------------

Deficit, end of year (12,616,570) (10,020,516)
----------------------------
----------------------------

Basic and diluted loss per share (0.16) (0.23)
----------------------------
----------------------------



http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=84114

For further information please contact:

Mr. Mike Kirwan
SVP Corporate Development
Tel. +604 684 6222
Fax +604 733 8821
mkirwan@burcon.ca
www.burcon.ca
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