Martek Acquiring FermPro

Martek Acquiring FermPro

COLUMBIA, Md.--Martek Biosciences Corp. signed a $10 milliondefinitive agreement to acquire FermPro Manufacturing. The Kingstree, S.C.-basedcompany provides contract fermentation services and had 2002 sales ofapproximately $20 million. FermPro has produced docosahexaenoic acid (DHA) forMartek for the past year. Under terms of the acquisition, Martek will pay $5million in cash and 124,788 shares of Marteks common stock; it will assume a$10 million secured note. FermPros president and chief executive officer(CEO), Barney Easterling, will become a vice president at Martek.

After the acquisition, Martek will operate the South Carolina facility asMartek-Kingstree, and will replace the plants contract fermentationproduction with production of Martek DHA and arachidonic acid (ARA). Martek-Kingstreewill be an important part of Marteks future, said Henry PeteLinsert, CEO of Martek (www.martek.com). Ibelieve the talent and experience of its workforce will greatly benefit Martekin pursuit of its goal to become a major biotechnology company.