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International Specialty Products Enters Strategic Partnership With Vital Health Sciences; Announces Launch of Bio-Functional Ingredients Platform

WAYNE, N.J., May 13 -- International Specialty Products Inc. ("ISP") announced that it has executed a long-term distribution agreement for the Personal Care industry with Vital Health Sciences Ltd. ("Vital Health") of MetroPark, NJ.

The agreement enables ISP to sell and market into the Personal Care industry ingredients that have been developed and will be manufactured by Vital Health. The agreement is globally exclusive, with the exception of Australia where Vital Health intends to develop its own line of consumer products for the Personal Care industry.

The first product emerging from the strategic alliance -- being launched at SCC NY's Annual Suppliers Day under the trade name Vital ET(TM) -- is a Vitamin E phosphate complex that has outstanding efficacy as an anti-inflammatory and anti-erythemal agent. These properties will offer particular benefits in sun care product formulations.

In clinical trials conducted in the USA, Vital ET(TM) was shown to be highly effective in both the prevention and amelioration of redness from UV exposure when topically applied to the skin at a level of 1% in an emulsion. A similar product with only Vitamin E acetate showed much less activity under the same conditions. Scientists had previously shown that Vital ET(TM) has a much greater capability to incorporate into the skin than commercially available Vitamin E acetate when applied topically.

Vital Health's technological breakthrough relies on a process known as phosphorylation which increases the biological effectiveness of compounds by keeping them stable until needed by the body. A key second aspect of the technology is complexation of the phosphorylated compound that allows more efficient delivery of the compound to the body either topically or orally.

Over the course of the 10-year strategic alliance, ISP and Vital Health intend to identify other innovative products and technologies for the Personal Care industry in addition to Vital ET(TM).

Bio-Functional Ingredients Platform

In an effort to expand its presence in the growing Personal Care market segment ISP has introduced its Bio-Functional Ingredients platform. The products in this platform offer unique, clinically-proven and consumer-perceivable benefits contributing to healthier skin. Vital ET(TM) and USP Allantoin, a well-known skin protectant, are the first of several new ingredients in ISP's Bio-Functional Ingredients platform.

About the Companies

International Specialty Products Inc. is a leading multinational manufacturer of specialty chemicals and mineral products. ISP manufactures products around the world and serves its 6000 customers in more than 90 countries using 60 sales offices and technical centers strategically located close to its customers.

Vital Health is a biotechnology company engaged in research, discovery and development of human and animal therapeutics and is 35.5% owned by Vital Capital Limited (traded on the Australian exchange under the code, VIT).

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