Lonza acquires Arabinogalactan business assets from Larex Inc.

Lonza Group announces the acquisition of assets which comprise Larex, Inc.’s Larch Arabinogalactan business. This strategic acquisition includes among other things, intellectual property, proprietary processing technology, manufacturing operations in Cohasset, Minnesota (USA), certain inventory and customer lists.

Larex, Inc. is the exclusive North American vertically integrated manufacturer of the nutritional compound Larch Arabinogalactan (“LAG”), a natural soluble fiber extracted from harvested Larch trees. LAG is extracted and purified through a patented and proprietary process to deliver functionally optimized products sold into the health science, consumer and industrial markets.

LAG, a natural, bioactive compound for use in human and animal nutrition, personal care and industrial applications, is generally recognized as safe (GRAS). It has been found to offer many significant benefits, the most important ones being in the fields of immune enhancement and digestive health. LAG products provide multifunctional properties either in stand-alone products or when combined with other ingredients to enhance product performance.

With the acquisition of Larch Arabinogalactan, Lonza further expands its portfolio of nutrition businesses within Organic Fine & Performance Chemicals. This Lonza division thus continues to actively broaden its innovative offerings and complements the existing product line.

About Lonza
Lonza, a chemical and biotechnology company driven by the life sciences, generated sales of CHF 2.52 billion in 2005. Headquartered in Switzerland, Lonza operates 22 production and R&D sites around the world. Its 6300 employees are passionately committed to delivering sustainable value to their customers. Lonza is one of the leading custom manufacturers of chemical intermediates, active ingredients and biopharmaceuticals for the pharmaceutical and agrochemical industries. On the basis of organic and performance chemicals and biotechnology platforms, Lonza creates value-added solutions for the nutrition, hygiene & personal care, wood & water treatment and industrial specialty markets. Lonza also offers polymer intermediates, resins and compounds. Lonza is listed on the SWX Swiss Exchange. Further information can be found on our website www.lonza.com.

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