BW0123 JUL 19,2000 5:03 PACIFIC 08:03 EASTERN

Maas BiolAB benefits from Hawaii Biotech Tax Incentives

HONOLULU--(BUSINESS WIRE)--July 19, 2000--Director of the Hawaii Department of Taxation, Ray Kamikawa, sent a letter today recognizing Maas BiolAB, LLC as a "qualified Hawaii high technology business" eligible for the impressive tax incentives of Hawaii Acts 178 and 297, announced Maas Chief Executive Officer Marcus Keep.

Governor Benjamin Cayatano last week signed the "New Economy Act". Act 297 provides incentives to support the development of high technology, including biotechnology, in Hawaii. The Act grants:

1) 10% state tax credit to investors for investment (through the year 2005). The allowed tax credit per year per investor is $500 000.

2) State income tax exclusion on royalties and other income derived from patents starting year 2000.

3) State income tax exclusion on stock option income and proceeds from the sale of stock from those options, for employee, director, and investors, starting year 2000

4) Additional 20% Hawaii tax credit on monies spent for increased research.

5) Allowance to sell unused Net Operating Loss up to $ 500, 000 per year (for at least 75% of the face value of the operating loss).

6) Capital losses carried up to 15 years.

The entire Hawaii New Economy Act 297 can be found at: http://www.capitol.hawaii.gov/sessioncurrent/acts/Act297_HB2901_CD1_.htm

According to Hawaii Tax Director Ray Kamikawa "The new high tech tax incentives will position Hawaii as one of the most attractive places to do business in the New Economy across the nation."

"Conservative Hawaiian investment money has serious inducement to look beyond real estate brick and mortar to biotechnology ventures such as Maas BiolAB with these impressive rainmaker tax incentives," is the analysis of Helmuth von Moltke, Maas Corporate Director.

Scientific Director Eskil Elmer Ph.D. noted, "The capital raised in part by these incentives will finance our Hawaii brain research leading to effective treatments for brain diseases like Huntington's, Lou Gerhig's, Parkinson's and Alzheimer's."

Maas BiolAB is developing treatments for serious neurological diseases including neurodegeneration, stroke and traumatic brain injury. It has patents and world rights to cyclosporin neuroprotection. Maas BiolAB seeks investment capital, and strategic pharma partnerships.

CONTACT: Maas BiolAB
Marcus Keep, 808/547-6940
mkeep@maasbiolab.com
http://www.maasbiolab.com

©2000