U.S. HEMP FOOD CASE THROWN OUT OF COURT

Hemp proponents say a recent court victory in the United States will
open that country to Canadian hemp seed products.

Arthur Hanks, executive director of the Canadian Hemp Trade Alliance,
said the Drug Enforcement Administration in the U.S., where it is
illegal to grow hemp, attempted to ban imports of hemp foods because
of trace tetrahydrocannabinol, or THC, content.

Those foods included waffles, vegetarian burgers, salad dressing and
nutrition bars.

Hemp Industries Association, which includes more than 200 North
American hemp companies, launched court action against the DEA 21U2
years ago.

The case was resolved in a San Francisco U.S. Court of Appeal earlier
this month.

Hanks said the court viewed the trace amounts of THC in hemp the same
way it views the opiates in the poppy seeds on a bagel.

In Canada, trace THC would be less than 10 parts per million, he
said.

"The court basically threw out the DEA's argument."

But he said Canadian hemp growers and companies are working to keep
the THC content even lower than the standard because some people were
falsely testing positive for marijuana use. That was a problem for
those who underwent routine tests at work.

"There were cases of hemp seed foods which had relatively higher
content of THC," Hanks said.

"We want to keep our trace contents down so urine tests are not going
to be a false positive. No one is getting high from these foods."

He predicts that the Canadian hemp industry will grow faster now that
the U.S. market is open, although the DEA could appeal to a hi gher
court and the Food and Drug Administration may decide to get involved.

Canadian hemp acreage grew to 6,700 acres last year from 3,200 acres
in 2001. The trend for many growers is toward organic production. They
may be limited by the amount of certified seed available this spring,
Hanks said.

About 10 Canadian hemp companies are heading to Natural Products Expo
West, a major trade show in Anaheim, California, in March.

"The opportunity and timing are just excellent," Hanks said.