Final Award Announced in PharmaNutrients / Natural Arbitration

Lake Bluff, Illinois, August 14, 2002 – Following an interim award announced last December, the American Arbitration Association has issued its final ruling in the arbitration between PharmaNutrients, Inc. of Lake Bluff, Illinois, and Natural ASA of Norway.

The arbitration panel re-affirmed as “valid and enforceable” the existing Supply/License Agreement created between PharmaNutrients and Natural at the dissolution of the joint-venture between the two companies in June, 1999. This agreement grants PharmaNutrients access to WARF patents relating to the use of conjugated linoleic acid (CLA) use in dietary supplements.

Mark Nottoli, President of PharmaNutrients, commented, “It is satisfying to have the Arbitration process confirm the Supply/License Agreement which ensures PharmaNutrients continued full access to the WARF-related CLA patents. Natural’s attempts to keep PharmaNutrients out of the CLA market have failed.”

Unaffected by the ruling are PharmaNutrients’ own intellectual property relating to CLA, as well as the company’s recent licensing agreements with Purdue University on the application of CLA and Type-2 diabetes and with Oklahoma State University on the preparation of phytosterol esters from CLA.

Mr. Nottoli added, “For the last year, the ambiguity related to the arbitration process has certainly been a barrier to the growth of our CLA business both in the US and Western Europe. That uncertainty has ended. PharmaNutrients remains committed to the category, our CLA One® brand, and to our most valued asset – our customer. From this point forward, we will be building market share through aggressive pricing and product innovation.”

PharmaNutrients supports university research investigating CLA and soluble fibers. The firm’s conjugated linoleic acid and chitosan-based, soluble fiber blended products are used in a wide range of dietary supplements and other nutraceutical applications involved in promoting healthy blood glucose levels and bone metabolism, cardiovascular health, weight management, immune health and other areas.

Founded in 1994, PharmaNutrients is a provider of proprietary, human study-validated, nutritional bio-active ingredients and technologies to the nutrients, food, and pharmaceutical industries. The company’s activities encompass multiple technology platforms including conjugated linoleic acid and chitosan soluble fibers, as well as other related platforms, each focused on solutions to some of today’s most significant health issues.


William E. Smart, Director
Voice: (847) 234-2334
Email: [email protected]

Mark A. Nottoli, President
Voice: (847) 234-2334
Email: [email protected]

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