Lonza and Nutraceutical Agree to Settlement of Litigation

Allendale, NJ, June 2005 - Lonza Ltd., a subsidiary of the Lonza Group, and Nutraceutical Corporation settled litigation pending in the District Court for the Central District of Utah involving Lonza’s U.S. Patent No. 5,073,376 (the “‘376 Patent”), entitled “Preparations Containing L-Carnitine.” L-Carnitine is a nutrient benefical for weight loss, athletic performance and general cardiovascular health. In March of 2004, Nutraceutical filed a declaratory judgment action against Lonza with respect to the 376 Patent. Lonza counterclaimed against Nutraceutical for infringement of its patent rights.

As part of the settlement, Nutraceutical and Lonza each agreed to dismiss their claims against the other. Nutraceutical agreed to the settlement to reduce its costs of litigation and has agreed to pay an undisclosed sum and purchase all of its requirements for L-Carnitine L-Tartrate in the United States from Lonza Inc., the ex-clusive distributor of L-Carnitine L-Tartrate in the United States. Nutraceutical intends to seek indemnification for the settlement from its suppliers of L-Carnitine L-Tartrate and some have already agreed to contribute.

Lonza is a life sciences driven company, headquartered in Switzerland, which gen-erated sales of CHF 2.18 billion in 2004. It operates 18 production and R&D facili-ties in eight countries and employs 5,670 people worldwide. Lonza is one of the leading custom manufacturers of chemical intermediates and active ingredients as well as biopharmaceuticals for the pharmaceutical and agrochemical industries. In addition, Lonza also offers organic intermediates for a wide range of applications and provides antimicrobial and associated products as well as polymer intermedi-ates and compounds. For more information please visit the company’s websites at www.lonza.com or www.carnitine.com.

For further information please contact:
Mike DeGennaro
Global Head of Food
Lonza Inc.
Tel +1 201 316 9308
Fax +1 201 785 9973
[email protected]

Christine Casper
Communications Manager
Lonza Inc.
Tel +1 201 316 9236
Fax +1 201 785 9013
[email protected]

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