COLUMBIA, Md., October 8 Martek BiosciencesCorporation announced today that it has entered into a long-term supplyagreement with Abbott Nutrition, a leading worldwide producer of infantformula products including the Similac(R) Advance(R) brand. Martek will serveas Abbott's exclusive worldwide DHA and ARA supplier for all of its infantformula products. The agreement provides for a 10-year term with Abbotthaving the right to terminate the arrangement as of January 2012.
Martek has been supplying DHA and ARA to Abbott for use in infant formulaproducts under a 25-year license agreement signed in 2000 which remains ineffect. In the new supply agreement, Abbott has committed to purchase all ofits worldwide DHA and ARA requirements from Martek.
Martek manufactures nutritional oils that contain the long-chainpolyunsaturated fatty acids DHA and ARA, both of which are naturally presentin breast milk. Clinical studies have demonstrated benefits for infantsreceiving formula supplemented with DHA and ARA. Martek's proprietary blendof DHA and ARA, marketed under the brand names life'sDHA(TM) andlife'sARA(TM), is currently used in over 95% of U.S. infant formulas.Additionally, infant formula containing life'sDHA and life'sARA has beenconsumed by over 20 million infants in over 65 countries worldwide.
"This new agreement affirms the benefits of adding Martek's DHA and ARA toinfant formula," said Steve Dubin, CEO of Martek. "With this new arrangement,two-thirds of Martek's business in the infant formula market is subject tomulti-year, sole source agreements."
Martek Biosciences Corporation (Nasdaq: MATK) is a leader in theinnovation and development of DHA omega-3 products that promote health andwellness through every stage of life. The company produces life'sDHA(TM), asustainable and vegetarian source of the omega-3 fatty acid DHA(docosahexaenoic acid), for use in foods, beverages, infant formula, andsupplements. The company also produces life'sARA(TM) (arachidonic acid), anomega-6 fatty acid, from a sustainable, vegetarian source, for use in infantformula. For more information on Martek Biosciences Corporation, visithttp://www.martek.com.
Sections of this release contain forward-looking statements. Thesestatements are based upon numerous assumptions which Martek cannot control andinvolve risks and uncertainties that could cause actual results to differ.These statements should be understood in light of the risk factors set forthin the company's filings with the Securities and Exchange Commission,including, but not limited to, the company's Form 10-K for the fiscal yearended October 31, 2006 and other filed reports on Form 10-K, Form 10-K/A, Form10-Q and Form 8-K.Contact: Cassie France-Kelly Public Relations (443) 542-2116 [email protected]
Kyle Stults Investor Relations (410) 740-0081 [email protected]
SOURCE Martek Biosciences Corporation