LOS ANGELES, Jan. 19, 2005 -- ALLERCA(TM) Inc. today announced a price increase on its first lifestyle pet, the ALLERCA(TM) hypoallergenic cat. The price increases from $3,500 to $5,000 per kitten for U.S. clients and $8,500 for international clients.

The increase is driven by the tremendous worldwide interest in the ALLERCA(TM) cat. Even at a planned breeding capacity of 200,000 kittens annually by 2010, ALLERCA(TM) may be unable to meet worldwide demand.

ALLERCA(TM) received over $50 million in expressions of interest and firm reservations in the first eight weeks following the announcement to develop the hypoallergenic cat, and the company projects an order book that will exceed one billion dollars by the end of 2007.

ALLERCA(TM) officially launched the project to produce the world's first hypoallergenic cat in October of 2004.

Research and development is already underway and ahead of schedule. The birth of the first hypoallergenic kitten is expected in 2006 and the very first customers will take delivery in 2007.

"The response to the ALLERCA(TM) hypoallergenic cat has been astonishing," states Simon Brodie, Chairman and CEO of ALLERCA(TM) Inc. "Not only have we seen a tremendous demand for our first lifestyle pet, but I am astounded by the outpouring of support and encouragement from animal lovers and allergy sufferers everywhere."

Brodie continues: "Although some people have expressed surprise at the cost or assume that the ALLERCA(TM) cat is only for the very rich, our client base proves otherwise.

There is a large sector of the public who wants the companionship of a hypoallergenic cat for themselves and their family. These clients may consider the ALLERCA(TM) kitten a luxury purchase, but agree the cats are worth the price. We have also seen clients reserve two or more kittens."

Brodie expressed surprise at how quickly ALLERCA(TM) has become recognizable on a global basis. "People everywhere seem to know ALLERCA(TM). We plan to establish ALLERCA(TM) as the de facto lifestyle pet company, but the speed at which the brand has become generally recognized did take us by surprise. I recently overheard one person tell another how they want an ALLERCA(TM): not a pet, not a cat, but an ALLERCA(TM)."

The financial community has also shown great interest in ALLERCA(TM). The company has been featured in much of the financial press and the online financial website The Motley Fool named ALLERCA(TM) a "Future Rule Breaker."

About ALLERCA(TM)

ALLERCA(TM) Inc. is a biotechnology company working with leading genetic technologies focusing on animal genetics, research and development. ALLERCA(TM) is currently developing the world's first hypoallergenic cat, expected in 2006. ALLERCA(TM) Inc. is headquartered in Los Angeles, California, and maintains an international presence in Europe, Japan, Australia and Latin America. Read more at http://www.allerca.com

Contact:

ALLERCA(TM) Inc.
11400 W. Olympic Blvd, Suite 200
Los Angeles, CA 90064
Tel: 310.312.9522
Fax: 310.861.5606
Email: pr@allerca.com