MEG-3(TM) Healthy Food Ingredient - US Production Expansion Announced

Foods Containing Heart Healthy Omega-3’s From Fish Oil Gaining Popularity

February 16, 2005 - Dartmouth, Nova Scotia, Canada – Ocean Nutrition Canada Ltd. (ONC), supplier of MEG-3™ Brand Omega-3 EPA/DHA food and dietary supplement ingredients, announced today a major US expansion in production capacity for its heart healthy food ingredient made from fish oil. ONC has purchased an existing facility in Arcadia, Wisconsin and is currently upgrading the plant to make it a world-class food ingredient production facility. The expansion is in response to a rapidly growing demand in the United States for food products containing Omega-3 from fish oil.

Consumer awareness of the health benefits of fish oil is driving the US market growth. Fish oil is the primary source of the functionally essential fatty acids Eicosapentaenoic Acid (EPA) and Docosahexaenoic Acid (DHA). In September 2004, the Food and Drug Administration (FDA) announced a qualified heart health claim for EPA and DHA enabling food manufacturers to label their food products, containing Omega-3 EPA and DHA, as being heart healthy. In January 2005, the United States Department of Agriculture released new dietary guidelines for Americans and recommended consumption of at least two meals of oily fish per week. These recommendations contribute to awareness among Americans that they are not eating enough fish and that they have a major dietary deficiency regarding EPA and DHA.

Ocean Nutrition Canada has developed a patented, microencapsulated and FDA notified GRAS ingredient, which allows food manufacturers to enrich foods people eat every day with the health benefits of fish oil. Food companies can now deliver the goodness of fish without the taste or smell of fish! Since people are slow to change their eating habits, adding EPA and DHA to food offers consumers great convenience while enabling them to contribute to their daily needs for the important Omega-3’s EPA and DHA. The benefits are heart healthy and great tasting foods that people enjoy everyday. "Consumers are embracing foods that are fortified with Omega-3. The response has been tremendous," said Michael Hodgett, Vice President of Business Development for Healthy Food Ingredients at ONC.

ONC currently produces MEG-3™ food ingredient in Dartmouth, Nova Scotia. When the Arcadia facility is completed, in mid 2005, ONC will have two world-class food ingredient production locations. Mr. Robert Orr, ONC President, stated, “Our plan is to produce our MEG-3™ food ingredient in Arcadia for the US market. The Dartmouth facility will continue to supply the Canadian, European and Asian markets. The diversification of our production into the US market, and further planned expansions for our Dartmouth production facility, will position us to serve the expanding global market for MEG-3™ Brand Omega-3 EPA/DHA food ingredients.”

About Ocean Nutrition Canada (ONC):
Ocean Nutrition Canada is a privately held company, and wholly owned subsidiary of Clearwater Fine Foods Inc., one of Canada's largest suppliers of quality seafood products. Ocean Nutrition Canada researches, manufactures, and markets Omega-3 concentrates and other marine based natural ingredients for dietary supplements and foods. ONC exemplifies scientific rigor in discovery and research programs, along with world leading regulatory and quality compliance standards.

Lori O’Connell
Ocean Nutrition Canada Ltd.

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