Balchem Corporation and David Michael &Co. Announce Strategic Alliance

NEW HAMPTON, N.Y., Feb 4, 2004 -- Balchem Encapsulates, a business segment of Balchem Corporation (Amex: BCP) and David Michael &Co. have entered into a strategic alliance to manufacture and market microencapsulated flavors throughout North America.

Balchem, a leader and pioneer in the field of microencapsulation technology, will microencapsulate a broad range of flavors for David Michael. Marketed under the trademark 'MichaelCap microencapsulated with Balchem(TM)', these flavors will have application within a number of food and beverage categories such as bakery, dairy, tea, coffee, confections, meats and nutraceuticals.

Balchem's unique encapsulation technology offers a number of attractive benefits verses traditional spray drying. The flavor load with MichaelCap is increased by as much as 100% while the proprietary coating process provides for a longer shelf life, typically 18 to 24 months, improved stability under heat, high moisture, and oxidation. MichaelCap is being offered with multiple coating materials for controlled release and application-tailored flavor delivery systems. MichaelCap technology also offers a benefit of co-encapsulation of multiple ingredients, both flavoring and non-flavoring.

Dino A. Rossi, President and CEO of Balchem, noted, 'It is with great pleasure that we have the opportunity to strategically align Balchem's unique encapsulation technology with David Michael &Company, a leader in solving flavor development challenges for the food industry. This alliance further reinforces David Michael's commitment to not only partnering with their customers, but also partnering with other industry leaders to introduce new product development capabilities by leveraging resources to effectively expand their expertise for the industry sectors they serve.'

David Michael, with over 100 years of experience in the creation of flavor systems, is offering a wide array of MichaelCap flavors, including vanillas, citrus, fruits, sweet, savory, mints, spice, cocoa and other sweet brown flavors. Skip Rosskam, President and COO of David Michael, said, 'This alliance provides our clients with access to today's state of the art microencapsulation technology. Equally as valuable will be future access to the next generations of microencapsulation that Balchem will develop and deliver through our alliance.'

Balchem provides high-performance encapsulated products globally to the food, human and animal nutrition industries.

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