MOUNTAINSIDE, NJ -- (Marketwire) -- 02/10/09 -- Proteonomix, Inc. (PINKSHEETS: PROT) announces that it and its subsidiary, Proteoderm, Inc., have entered into a renewable three-year contract. This definitive agreement is a follow up of a letter of intent dated December 15, 2008 with two China-based companies, China Biopharma, Inc. and Sinoquest Investment Limited, for the exclusive license, ingredient purchase, sale and distribution of Proteoderm's stem cell-derived cosmeceutical product lines in China, Hong Kong and Taiwan.

Pursuant to the agreement, China Biopharma and Sinoquest will purchase from Proteoderm pre-mixed cosmeceutical materials which they will then bottle, label, package and sell. The products consist of a day cream, a night cream, an under-eye serum, a cleanser and an exfoliant, each containing Proteoderm's unique patent pending natural matrix of bioactive proteins called Matrix NC-138(TM), for use in anti-aging skin products. The products have been shown to enhance the stimulation of collagen and glandular production, leading to a reduction in lines and wrinkles.

China Biopharma and Sinoquest shall purchase the material from Proteoderm, and, each month, report sales of units of the product. In addition to the purchase price, they shall pay to Proteoderm a royalty per unit on net sales. The retail price of the units is expected to be approximately $400.

In addition to the license and distribution of Proteoderm's cosmeceuticals, the agreement requires Sinoquest and China Biopharma to purchase shares of Proteonomix' common stock on the open market and to establish a "WOFE," a Wholly Owned Foreign Enterprise, to be owned 60% by Proteoderm and 40% by Sinoquest and China Biopharma. The WOFE will be responsible for the sales and marketing of other Proteoderm products, pursuant to future agreements.

Michael Cohen, CEO of Proteonomix, stated: "We are very pleased to have entered into this agreement with China Biopharma and Sinoquest. We look forward to a long relationship and the establishment of a base of customers in China, Taiwan and Hong Kong. Peter Wang, a principal and the chief executive officer of both Biopharma and Sinoquest, is a successful entrepreneur with a track record of developing companies to explore the burgeoning Chinese market. His last venture was UTStarcom, Inc., a telecommunications company operating in the United States, China and other countries, which trades on NASDAQ. When sold, it had annual gross revenues in excess of $2 billion.