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PVAXX Ltd. Inks Exclusive "Take-Off" Purchase And Sale Agreement With Middle Eastern Affiliate

18 18 2003

Hamilton, Bermuda: July 17, 2003 - PVAXX Ltd., a Bermuda based commercial materials sales corporation announced today the bilateral execution of an exclusive purchase and sale agreement with PVAXX Industries LLC., a new Bahraini enterprise that is controlled by HRH Shaikh Abdulla Bin Hamid Bin Issa Al Khalifa. The company has granted exclusivity to the purchaser for the worldwide use and supply of certain PVAXX Unifiers, to be combined with the Purchaser's mineral(s) that will allow the purchaser to produce commercial products on a global distribution basis. The purchaser will be required to purchase PVAXX Unifier at a price of approx $2000 per tonne over an initial thirty-six (36) month period as follows:

· Tonnage of 60,000 tonnes during the Aug 2003-4 term.

· Tonnage of 120,000 tonnes during the Aug 2004-5 term.

· Tonnage of 240,000 tonnes during the Aug 2005-6 term.

The agreement will have full force and effect on August 1, 2003 and remains subject to due diligence review until that date. Provided both parties satisfactorily conclude such due diligence review period, the agreement will contribute significantly towards helping the company achieve its business plans.

About PVAXX Ltd.€”

Our company is a commercial materials science company delivering cost effective solutions which are able to be utilized on standard equipment and also must have a beneficial effect on the environment. We have successfully developed (and "applied for" or been "granted" patents on a global basis,) UnifiersÃ”, which have enabled the production of:

· P2 BioCompostableÃ” (biodegradable, compostable and soluble) materials that are not toxic to the environment and used in plastics and packaging manufacturing processes. P2 has been designed to be an "environmentally friendly" substitute for traditional plastics.

· Recycled Bulk Material ("RBM") that convert industrial by-products (such as pulverized fuel ash, tyre granulate and agricultural biomass) into versatile materials. RBM is suitable for the manufacture of a variety of extruded and injection moulded products for use as a replacement for timber and plastic.

· Virgin Bulk Material ("VBM") that convert low value materials (such as sand, salt and silt) into versatile materials. VBM is suitable for the manufacture of a variety of extruded and injection moulded products for use as a replacement for timber and plastic.

· SoftCapÃ” pharmaceutical encapsulate. A calcium carbonate pharmaceutical capsule, which does not require the use of animal derivatives (pork and beef gelatine) Soft CapÃ” is suitable for replacing gelatine and cellulose hard capsules.

In announcing this significant relationship, Mark Thatcher, Director and Vice President stated, "Our Company's fundamentals are stronger than ever. We have recently completed an exciting quarter in our company's history as we gradually make the transition from a research, development and engineering start-up to an international sales company supplying patented PVAXX Unifiers to the global industrial and agricultural communities. The demand for our products in this current quarter continues to develop and our market acceptance is growing significantly. These factors, as well as the underlying asset value of our businesses, maintain our Board of Directors' belief that we will be successful in our ongoing efforts to further enhance shareholder value." This press release may include forward-looking statements about the company's revenues and earnings and future plans and objectives. Any such statements are subject to risks and uncertainties that could cause the actual results to vary materially. These risks are discussed in the company's Bermuda Stock Exchange informational prospectus that may be found posted on the company's website at www.pvaxx.com.

For more information about PVAXX LTD., headquartered in Hamilton, Bermuda, please see:

www.pvaxx.com.

For international investor relations' matters, please contact:

investorrelations@pvaxx.com