PharmEng Receives Site License From Health Canada To Manufacture Natural Health Products In Sydney, Nova Scotia

The issuance of this license permits the Sydney facility to manufacture natural health products. The facility is also anticipating the imminent issuance of its Precursor License under the Controlled Drugs and Substances Act which will allow the site to broaden the portfolio of Controlled Substances that it currently produces.

The 46,400 sq. ft. Sydney facility includes pilot laboratories for formulation development, rooms with various capabilities such as high shear mixing, container blending and equipment for modified release technology. The facility provides formulation development and testing services to manufacture and package products in solid and liquid dosage forms.

The Sydney site also includes offices for PharmEng's pharmaceutical consulting division. Keata's long-term goal is to develop capabilities in other dosage forms, such as suppositories, topicals and injectables. The facility is located on five acres in the Northside Industrial Park, a 300 acre business park in North Sydney, NS.

Stock Option Grants

At a meeting June 30, 2008, the Board approved and granted 859,000 options to the Directors (120,000 options granted), executive leadership team (480,000 options granted) and employees (259,000 options granted) of the Company. Under the Company Stock Option Plan, the options were granted at a strike price of $0.45, being the current market price at the granting date, with a term of 4 years and will vest in equal amounts during the next 12, 24 and 36 months.

About PharmEng International Inc.

PharmEng International Inc., headquartered in Toronto, Canada, is a full-service consulting and contract manufacturing company that serves the pharmaceutical and biotechnology industries in North America and internationally. Consulting services include project management, engineering, GMP, validation, calibration, regulatory compliance and certified training. Contract manufacturing includes pharmaceutical support, formulation development, laboratory testing, and finished solid dosage and liquid products. PharmEng's shares trade on the TSX Venture Exchange under the symbol PII. For more information about PharmEng International Inc. (TSX-V: PII), visit the Company's website at www.pharmeng.com.

FORWARD LOOKING STATEMENTS

Certain statements in this press release may include "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of PharmEng to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements use such words as "may", "will", "expect", "anticipate", "project", "believe", "plan", and other similar terminology. The risks and uncertainties are detailed from time to time in reports filed by PharmEng with the securities regulatory authorities in all of the provinces and territories of Canada. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of PharmEng to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction actual results.

Website: www.pharmeng.com