Frutarom Launches New and Innovative Functional Ice Cream Product Range

HAIFA, Israel, May 3, 2005 /PRNewswire-FirstCall via COMTEX/ -- Frutarom (LSE: FRUTq) (TASE: FRUT) today announced the launch of a new product: the Functional Ice Cream Product Range. Functional food is the fastest growing segment of the food industry. The functional ingredient segment is currently growing at an annual rate of 8-10% in both developing and developed countries, mainly in the beverage and dairy sectors. Today, with Frutarom's assistance, ice cream manufacturers can now join their brethren in these industries and provide the public with the functional products that it increasingly demands.

One of the main trends driving the ice cream industry, as it prepares to launch new products for the coming summer, is functional ice cream to enhance well-being. Low calorie ice creams and ice creams containing probiotics, are just two examples of added value products. Until now, few ice cream producers have investigated the benefits of including plant extracts in their products, a trend which the beverage and dairy industries are already taking full advantage of. Exciting products for well-being, combining excellent taste with a variety of functionalities, offer the manufacturer innumerable opportunities for novel products.

Frutarom has announced the launch of a new and innovative, all-in-one product range offering ice cream manufacturers a unique pre-integrated solution. This solution combines natural fruits, natural flavor extracts and natural functional ingredients that enhance and support well-being. Examples include ice cream with Aloe Vera to support inner beauty, or with green tea to support stress relief. Manufacturers can choose natural product building blocks for other functionalities to get convenient and unique tailor-made solutions that are easy to apply.

Ori Yehudai, President and CEO, said, "Frutarom's unique capabilities for providing integrative products have been strengthened by the acquisition of IFF's European Food Systems. We can now offer our customers in the food industry unique, innovative, added-value, pre-integrated products that combine natural flavours and natural functional ingredients with food systems."

Yehudai continued, "Frutarom today is uniquely positioned as the only specialty food ingredient producer that can offer functional ingredients to support and enhance well-being, backed by clinical studies with GMP Swiss quality standards, along with flavours and food systems. Combined with our knowledge of the food industry's needs and our ability to provide integrated tailor-made solutions, this ability positions us as a partner who can assist food manufacturers in meeting their customers' needs for tasty and healthy food."

Frutarom is a global company with significant production and development centers on three continents that markets its products to over 3,500 customers in more than 100 countries worldwide. Frutarom's products are intended largely for the food, beverage, flavor, fragrance and pharmaceutical industries. Frutarom achieved record results in 2004 in its fifth consecutive year of growth: in 2004 sales grew 41.2% to US$ 196.8 million with net profit increasing significantly by 91.6% to US$ 15.8 million.

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