FAIRFIELD, Conn., April 10, 2007 (PRIME NEWSWIRE) -- Competitive Technologies, Inc. (AMEX:CTT - News) announced today that it is entering the expanding nutraceutical ingredients market through a strategic investment into and acquisition of exclusive marketing rights to the output of the proprietary extraction technology of Agrofrut E.U. (Agrofrut), a Colombia-based producer of nutraceutical ingredients and other similar products. CTT will build on the strength of this proprietary technology by becoming an active supplier of nutraceutical ingredients, capitalizing on Agrofrut's technology, raw material sourcing position and market knowledge. The nutraceutical ingredients market is currently estimated at over $12 billion with ingredients supplied from a highly fragmented, globally-sourced market.
CTT is making a strategic investment of $750,000 for 5% ownership of Agrofrut, with the right to exchange CTT stock to acquire up to 100% of Agrofrut's remaining shares. Agrofrut's proprietary technology uses the biomass waste of pineapples, sugar cane, oranges, grapefruits and other agricultural products to produce high quality, low cost nutraceutical ingredients. Agrofrut's valuable extraction technology produces nutraceutical ingredients such as bromelain and xylitol among other important by-products, including ethanol and other alternative fuels. Upon execution of a definitive option agreement and payment of the investment, CTT and Agrofrut will share revenue from the sale of products on a 40/60% basis respectively. CTT's investment will be utilized by Agrofrut to accelerate expansion of Agrofrut's extraction capacity.
``The investment into this leading-edge extraction technology and rapidly developing industry allows CTT to quickly become an important supplier of basic ingredients for the nutraceutical industry,'' said John B. Nano, CTT's Chairman, President and CEO. ``We strongly believe this is a win-win situation for CTT and its shareholders, and is one of several announcements we expect to make in the near future. This investment allows CTT to modify our technology commercialization business model and create a strong recurring revenue stream. Following validation of our initial investment, we have the right for 180 days to exchange CTT stock for the remaining shares of the Agrofrut company.''
The Nutraceutical Institute defines nutraceuticals as natural, bioactive chemical compounds that have health promoting, disease preventing or medicinal properties. The World Health Organization reports that 80% of the global population uses herbal medicine as its primary form of health care, ranging from 95% in China, to 2-3% in the United States. Nutraceuticals can be found in multiple products coming from the herbal and dietary supplement market, pharmaceutical companies, and functional foods and beverages that contribute to human health and the prevention and treatment of disease. The U.S. Food and Drug Administration has established use, marketing and regulation guidelines for nutraceuticals and their applications. The increasing market recognition by the public and expanded interest by large pharmaceutical companies creates an excellent opportunity for CTT in the nutraceuticals industry. CTT's plan is to supply ingredients to companies producing nutraceuticals for consumers, allowing those companies to utilize their core capabilities for clinical testing, marketing and distribution of consumer end-products.
About Agrofrut E.U.
Agrofrut was developed to economically commercialize technologies for processing fruit, vegetable and other organic biomass waste in order to extract valuable by-products for sale while simultaneously reducing or eliminating pollutants. An extensive part of Agrofrut's efforts concentrate on pineapple and citrus processing, the extracts of which are used to produce bromelain, xylitol, and organic cloth and paper products. Additionally, the environmentally-friendly proprietary technologies are used in processing the biomass to produce ethanol and biodiesel fuel. Agrofrut processes greatly eliminate environmentally harmful burning and/or landfill dumping. Visit Agrofrut's website at: http://www.agrofruteu.com.
About Competitive Technologies, Inc.
Competitive Technologies, established in 1968, is a full service technology transfer and licensing provider focused on the technology needs of its customers and transforming those requirements into commercially viable solutions. CTT is a global leader in identifying, developing and commercializing innovative technologies in life, electronic, nano, and physical sciences developed by universities, companies and inventors. CTT maximizes the value of intellectual assets for the benefit of its customers, clients and shareholders. Visit CTT's website: http://www.competitivetech.net
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