Kraig Biocraft Laboratories, Inc. announced the completion of its third-party pilot production. As a result of this highly successful program, Kraig Labs will launch the critical next phases of its business plan and expand its recombinant spider silk production in collaboration with third-party contractors. Key Kraig Labs management team members traveled to Vietnam to review the results of a series of pilot production runs completed by one of the silk production subcontractors the Company has been working with in preparation for entering the next phase of its business plan.

The subcontractor pilot program exceeded management's expectations to the point that Kraig Labs is now finalizing the terms of a 5-year production contract. This joint effort, by the subcontractor and Prodigy Textiles, the Company's Vietnamese subsidiary, has already completed production of the raw recombinant spider silk needed for the first apparel launch under the Company's jointly owned apparel brand, SpydasilkTM. Kraig Labs is on track to complete negotiations on the structure of expanded production with this contractor before Jon Rice, the Company's Chief Operations Officer, returns to the US this week.

Based on the results of these first pilot runs and the contractors' production capacity, the Company is now on a path to producing metric tons of spider silk.