Vancouver, British Columbia -- January 15, 2003 Forbes Medi-Tech Inc. (TSE:FMI and NASDAQ:FMTI) today announced that shipments have begun under the major sterols supply agreement announced in September 2002. This agreement is between Forbes' manufacturing joint venture, Phyto-Source LP, and a large multinational company. For competitive reasons, the identity of the customer and contractual terms and conditions have not been disclosed. Based on customer forecasts, it is expected that this supply agreement, together with other supply agreements already secured by Forbes and the Joint Venture, will generate total revenues of up to $40 million over two years.
"The commencement of shipping and recognition of revenue from this contract represents a significant milestone for the Company," said Charles Butt, President and CEO of Forbes Medi-Tech Inc.
Manufacturing of the phytosterols for all supply contracts is conducted by the Phyto-Source joint venture manufacturing facility in Pasadena, Texas, a 50-50 joint venture between Forbes and Chusei (USA) Inc. Forbes anticipates recognizing approximately 60% of the total revenue under these supply
agreements on its income statement. Approximately 800 tonnes of
Phyto-Source's 1000 tonne annual production capacity has been secured by these contracts.
About Forbes Medi-Tech Inc.
Forbes Medi-Tech Inc. is a biopharmaceutical company dedicated to the research, development and commercialization of innovative pharmaceuticals
and nutraceutical products for the prevention and treatment of
cardiovascular and related diseases. By extracting plant sterols from wood pulping by-products, Forbes has developed cholesterol-lowering agents to be used as pharmaceutical therapeutics, dietary supplements and functional food ingredients.
NASDAQ and the Toronto Stock Exchange have not reviewed and do not accept responsibility for the adequacy or accuracy of the content of this news release. This news release contains certain forward-looking statements concerning anticipated revenues, sales, manufacturing, production, and products, which statements can be identified by the use of forward-looking
terminology, such as "anticipates", "up to", "to be", "expected",
"forecasts" and comparable terminology referring to future events or results. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous factors, including without limitation, uncertainty as to whether product volumes will be ordered as forecasted or at all; the need for performance of contract obligations by buyers of products; uncertainty that the
Phyto-Source LP manufacturing facility will function as planned;
uncertainty as to the Company's ability to generate projected sales volumes; the need for continued cooperation and performance by the Company's joint venture partner, Chusei (USA) Inc.; the need to control costs and the possibility of unanticipated expenses and delays; and uncertainty as to the successful conclusion of sales discussions currently underway, and of those anticipated, with third-party purchasers; and the Company's need for additional funding, which may not be available to the
Company on acceptable terms or at all. See the Company's reports filed
with the Toronto Stock Exchange, the B.C. and Ontario Securities
Commissions, and the U.S. Securities and Exchange Commission from time to time for cautionary statements identifying other important factors with respect to such forward-looking statements, including certain risks and uncertainties, that could cause actual results to differ materially from results referred to in forward-looking statements. The Company assumes no obligation to update the information contained in this press release.