New Licensing Agreement for US Sales of PepZin GI™

Laguna Niguel, CA (September 18, 2002) – IMAGINutrition, Inc. announced today that they have orchestrated a patent/distribution agreement between Lonza, Inc., based in Basel, Switzerland, and Hamari Chemicals, Ltd., based in Osaka, Japan. The technology transfer will provide Lonza with an exclusive distribution agreement to market PepZin GI™, a patented zinc-carnosine complex, in North America and Europe. In Japan, PepZin GI™ has been used for over a decade as an ulcer-healing drug under the generic name Polaprezinc. Lonza will be marketing PepZin GI™ as a dietary ingredient in a variety of sales channels in the nutrition industry.

PepZin GI™ is a coordination complex of zinc with the dipeptide L-carnosine. The patented complex is a unique molecular entity, with biological activity different than that of zinc mixed with carnosine. Unlike most patented dietary supplements, PepZin GI™ is protected by a composition of matter claim. Hamari’s suite of patents for the zinc-carnosine complex confers a high degree of intellectual property insulation. In addition, the US Food and Drug Administration has recently allowed the sale of PepZin GI™ as a new dietary ingredient.

Lonza approached IMAGINutrition with an interest in licensing or acquiring nutritional technologies that would complement their own patented and clinically researched ingredients. With its extensive patent protection, numerous human and animal studies and history of clinical usage in Japan, PepZin GI™ is a valuable addition to Lonza’s portfolio of intellectual properties.

“PepZin GI™ is in a very exclusive category. This is a rigorously studied and documented dietary ingredient with numerous product applications,” observed Anthony L. Almada, MSc, President and Chief Scientific Officer of IMAGINutrition. “There is a strong and ever-growing public demand for nutritional supplements supported by this extensive level of safety and efficacy data.”

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IMAGINutrition, Inc. is a nutritional technology and demand creation think tank, focused on the dietary supplement, food, beverage, medical food, and cosmeceutical industries. Headquartered in Orange County, CA, IMAGINutrition creates and matures - through clinical trials and additional intellectual property layering - then transfers intellectual properties, which ultimately appear as consumer products in these industries.

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