Probi, Rosell Renew Lp299v Partnership

LUND, SwedenProbi and Institut Rosell signed a new 7-year agreement, securing Probis existing license revenues as well as securing supply of Probis strain Lp299v to Rosell. The new agreement replaces the 7-year-old agreement with Institut Rosell, which is the basis of approximately 20 percent of Probis turnover. The new agreement further enables Probi to enter into direct distribution agreements or launch dietary supplements for gut health on its own in territories not covered by Institut Rosells exclusivity. The agreement is expected to have positive impact on Probis profit already in the second quarter of 2011.

"Dietary Supplements is our fastest growing business area and is very important to us," said Michael Oredsson, CEO of Probi. The new agreement with Institut Rosell secures existing revenues, and will lead to higher revenue and increased profitability in markets where we already cooperate. At the same time, Probi will be able to engage directly with distributors or launch Lp299v supplements direct to consumer in a number of key markets."

The new agreement gives Institut Rosell the right to continue manufacturing capsules based on Probis strain Lp299v. Additionally, Institut Rosell retains exclusive license rights to existing markets France, Spain, Greece, Benelux, Canada, large parts of South America and some distribution channels in the United States.

The most important benefits for Probi are:

Probi researches probiotics in areas that include gastrointestinal (GI) health, immune health, metabolic syndrome, and stress and recovery. Probi supplies probiotics to customers in the functional foods and dietary supplement business areas. Total income for 2009 was MSEK 65.5, of which the majority represented royalties. Probis share is listed on the Nasdaq OMX Stockholm, Small Cap. Probi has approximately 4,500 shareholders.

Institut Rosell is a French Canadian company specializing in the selection, development, production and marketing of probiotic formulations for human nutrition and health. Expert in live microorganisms since 1934, Institut Rosell undertakes research programs so as to better understand the properties, modes of action and beneficial effects on health of these probiotic formulations. Institut Rosell is part of the Lallemand Group, a privately owned company with head offices in Montreal, and Toulouse, France, and production facilities in various countries around the world.