Company Increases Big Customer List with Major Agreement~
Vancouver, British Columbia --Forbes Medi-Tech Inc. (TSE:FMI and NASDAQ:FMTI) today announced that it has secured a sterols sales agreement for US$24.4 million over a three-year period beginning in January 2005. This new customer agreement is between Forbes' manufacturing joint venture, Phyto-Source LP, and a leading multinational ingredient company. For contractual reasons, the identity of the new customer and contractual terms and conditions, will not be disclosed.
"Our cholesterol-lowering ingredient business is growing substantially and our core group of customers continues to expand," said Charles Butt, President and CEO of Forbes Medi-Tech Inc. "The addition of this supply agreement in combination with the pending EU approval will provide new opportunities to expand the Company's phytosterol business and allow us to look at further increasing production capabilities." A recent Frost & Sullivan report estimated the European plant sterols market to grow 15% annually until 2010.
Manufacturing of the phytosterols will be conducted by the Phyto-Source joint venture manufacturing facility in Pasadena, Texas, a 50-50 joint venture between Forbes and Chusei (USA) Inc. Forbes anticipates recognizing approximately 54% of the total revenue under these supply agreements on its income statement over the next three years.
About Forbes Medi-Tech Inc.
Forbes Medi-Tech Inc. is a biopharmaceutical company dedicated to the research, development and commercialization of innovative prescription pharmaceutical and nutraceutical products for the prevention and treatment of cardiovascular and related diseases. Forbes' scientific platform is based on core sterol technology. By extracting plant sterols from by-products of the forestry industry, Forbes has developed cholesterol-lowering agents for use in pharmaceutical compounds, functional foods and dietary supplements.
NASDAQ and the Toronto Stock Exchange have not reviewed and do not accept responsibility for the adequacy or accuracy of the content of this News Release. This News Release contains forward-looking statements regarding the Company's future projected sales and revenue and anticipated regulatory approvals, which statements can be identified by the use of forward-looking terminology such as "pending", "to expand", "increasing", "will provide", "will be", "anticipates" and similar expressions or variations thereon, or statements that events, conditions or results "would", will," "may," "could" or "should" occur, be achieved or be achieved within a certain time period. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous factors, including uncertainty as to whether product volumes will be ordered and shipped as forecasted or at all; the need for performance by buyers of products; the need for domestic and foreign regulatory approvals, the receipt of which cannot be assured; the need for the new customer described in this News Release to perform its obligations under the supply agreement described in this News Release; the need for performance by the Phyto-Source LP manufacturing facility; uncertainty as to the Company's ability to generate projected sales volumes; the need for continued cooperation and performance by the Company's joint venture partner, Chusei (USA) Inc.; the need to control costs and the possibility of unanticipated expenses and delays; the need to secure raw materials at competitive prices; uncertainty as to the exact portion of total revenue that the Company will recognize; the risk of technical obsolescence; intellectual property risks; marketing/manufacturing and partnership/strategic alliance risks; product liability and insurance risks; the effect of competition; and the Company's need for future funding; any of which could cause actual results to vary materially from current results or the Company's anticipated future results. See the Company's reports filed with the Canadian and U.S. securities regulatory authorities from time to time for cautionary statements identifying important factors with respect to such forward-looking statements, including certain risks and uncertainties that could cause actual results to differ materially from results referred to in forward-looking statements. The Company assumes no obligation to update the information contained in this News Release.