Biofarm, Inc. and Friendlyway, Inc. Sign Share Exchange Agreement SAN FRANCISCO, Aug. 18 /PRNewswire/ -- Biofarm, Inc. (OTC:BIOF) (BULLETIN BOARD: BIOF) announced today the signing of a Share Exchange Agreement ("SEA") providing for the acquisition of Friendlyway, Inc. ("FWI") by BIOF. FWI will become a wholly-owned subsidiary of BIOF, and for accounting purposes only, the transaction will be treated as a reverse merger. The name of the combined entity will be changed to International Interactive Technologies Corporation. Shareholders of BIOF will continue to own their existing shares and will also receive at a later date an equal number of the shares of OCWEN Corporation, a newly formed corporation that has acquired all assets of BIOF and has assumed all of its liabilities Relevant audited financial statements have been delivered both by FWI and BIOF in accordance with the SEA, and the transaction is expected to close during the month of September 2004. FWI is a leading self-service solutions provider based in San Francisco (http://www.friendlyway.com/). Since its inception in 2000, the Company has delivered customer-facing applications for point-of-sale/service and point-of- information devices to over 250 customers that include Fidelity Investments, Bank of America, Nike and Marriott Hotels. FWI generates its revenues from the sale and rental of its systems. For the year ended December 31, 2003, FWI posted total revenue of $1.7M, which represented a doubling of its revenue for the preceding year. For the second quarter ended June 30, 2004, FWI recorded record revenue of $725,000, an increase of 54% over revenue for the quarter ended March 31, 2004. FWI anticipates revenue approximately $1 million for the current quarter ending September 30, 2004. Of such total revenue, FWI anticipates that systems sales will represent 90% and that rental revenue will represent 10%. FWI's business plan is to utilize its public company status to complete equity financing that will enable FWI to pursue more aggressively its expansion plan, as well as to capitalize upon its public company status to effect acquisitions of other entities within the highly fragmented self service solutions industry. Alex von Welczeck, CEO of Friendlyway stated, "The proposed transaction with BIOF is the first step towards accomplishing our growth goals. Since inception, FWI has demonstrated its ability to achieve consistent revenue growth while building a sustainable business". During the past four years, FWI has gained extensive experience in serving the self-service solution needs of its customers. FWI expects the market opportunity to remain attractive, largely driven by the growing applications for self-service terminals, pay-for-use Internet and Wi-Fi hotspots, narrowcasting in public space terminals, and for customer service. Currently, FWI operates in a highly fragmented industry and believes there are inherent opportunities to seek out complementary businesses as acquisition candidates as part of its growth strategy. Biofarm, Inc. is a holding company with headquarters in Linfield, Pennsylvania. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended including statements regarding Friendlyway's anticipated revenue, growth in Friendlyway's target market, and the anticipated closing of the proposed transaction Investors are cautioned that all forward-looking statements involve risks and uncertainty. While these statements are made to convey to the public Biofarm's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. While management believes such representations to be true and accurate based on information available to Biofarm at this time, actual results may differ materially from those described. In addition to the matters described in this press release, risk factors listed from time to time in Biofarm's SEC reports and filings, including, but not limited to, its report on Form 10QSB for the quarters ended January 31, 2004 and April 30, 2004, and its report on Form 10-KSB for the year ended October 31, 2003, may affect the results to be achieved. DATASOURCE: Friendlyway, Inc. CONTACT: Henrly Lo of Friendlyway, Inc., +1-415-816-6166, or Web site: http://www.friendlywayinc.com/

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