Forbes Medi-Tech Completes Phytosterol Plant, Strikes Dealwith Novartis

Forbes Medi-Tech Completes Phytosterol Plant, Strikes Dealwith Novartis

VANCOUVER, British Columbia--Forbes Medi-Tech Inc. and its joint venture partner Chusei Inc. of Pasadena, Texas, have essentially completed construction of a $16.2 million, 55,000-square-foot plant dedicated to wood sterol manufacturing in the greater Houston, Texas, area. "ThePhyto-Source plant at full capacity will be one of the world's largest dedicated wood-derived sterol manufacturing facilities, which strengthens Forbes' position as a global leader in sterol technology and production," said TazdinEsmail, chairman and chief executive officer of Forbes Medi-Tech (www.forbesmedi.com).

The manufacturing plant is operated by Phyto-Source LP, a joint venture between Forbes and Chusei Inc. Through Phyto-Source, Forbes now has the capacity to produce more than 360 metric tons of pharmaceutical and food-grade sterols annually that meet Good Manufacturing Practice standards. Forbes anticipates the new plant will be capable of producing 1,000 metric tons annually by the second quarter of calendar 2002. Plant sterols, also known as phytosterols, are lipid-like compounds extracted from plants used to produce cholesterol-lowering food ingredients.

Forbes also reached an agreement with Novartis Consumer Health SA for the licensing and distribution rights to consumer products fortified with Reducol™, a cholesterol-lowering functional food ingredient. Forbes made a one-time payment of $4 million, payable by March 18, for the rights, and has the option to acquire potential sublicenses. Novartis Nutrition AG, an affiliate ofNovartis, retains an exclusive option for the worldwide license to use Reducol in medical foods.