Vancouver, Canada Forbes Medi-Tech Inc. (TSE:FMI and NASDAQ:FMTI) today announced that it has agreed to supply Reducol(tm) for use in milk-based drinks to Scanvit Ltd., a Finnish healthcare company. This is the second international functional food partnership announced since the EU Commission decision was issued earlier this month authorizing the use of Reducol(tm) in milk-based beverages.
"The Scandinavian market has demonstrated a strong preference for functional foods and Scanvit has the infrastructure to take advantage of such an opportunity," said Charles Butt, President and CEO of Forbes Medi-Tech Inc. "Expansion of our global strategic partnership program is an integral part to furthering the Reducol(tm) brand," said Butt.
"Finland is one of the original sterol markets where products such as
Benecol(r) were launched," said Jukka Santavirta, Chairman of Scanvit Ltd. "Reducol(tm)'s clinically proven ability to lower cholesterol provides a distinct competitive advantage in one of the world's most well-developed functional foods market," added Santavirta.
Under the terms of the agreement, Forbes will supply Reducol(tm) from its 50/50 manufacturing joint venture, Phyto-Source LP, in Pasadena, Texas. Scanvit Ltd. will be responsible for the sale and marketing of
Reducol(tm) as part of a product launch planned for early 2005.
Applications for additional food groups are expected to be filed before year-end.
About Scanvit Ltd.
Scanvit Ltd. is a Finnish health-care company focusing on the prevention of cardiovascular diseases. Scanvit's core competency is in developing new markets for dietary supplements and functional foods in Scandinavia, the Baltic countries and Russia. For more information on Scanvit, visit the website at www.scanvit.fi
About Forbes Medi-Tech Inc.
Forbes Medi-Tech Inc. is a biopharmaceutical company dedicated to the research, development and commercialization of innovative prescription pharmaceutical and nutraceutical products derived from by-products of the forestry industry and other natural sources for the prevention and treatment of cardiovascular and related diseases. The Company's scientific platform is based on core sterol technology. Forbes has developed cholesterol-lowering agents for use in pharmaceutical compounds, functional foods and dietary supplements.
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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 forward-looking statements regarding the future supply of Reducol(tm), the incorporation of Reducol(tm) in future products and the launch of such products, and future applications for approval of Reducol(tm) in other food groups, which statements can be identified by the use of forward-looking terminology such as "planned", "will", "to", reference to future dates, or 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 the risk of early termination of the agreement with Scanvit; the Company's reliance on Scanvit for performance; product development risks; uncertainty whether products containing Reducol(tm) will be launched in mid-2005 or at all; uncertainty regarding market acceptance of products containing Reducol(tm); intellectual property risks; manufacturing risks and the Company's dependency on its joint venture manufacturing partner, Chusei
(U.S.A.) Inc.; raw material supply risk; product liability and insurance risks; the effect of competition; uncertainty whether applications for other food groups will be approved in a timely manner or at all; and the Company's need for future funding; any of which could cause actual results to vary materially from current results or the Company's anticipated future results. See the Company's reports filed with the Canadian and U.S. securities regulatory authorities from time to time for cautionary statements identifying 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 News Release.